TO FURNISH OR NOT

Posted by gwern (226 days ago)

I have just bought a small Mid Levels property that is renovated and ready to move in. I intend to rent it out and wonder, should I furnish it or not? If I do I would like to do it well but I don't want to move the stuff out if the prospective tenant doesn't want it. What are your thoughts on this?

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Posted by walkup (224 days ago)

If it is a small mid levels apartment then the odds are that you are going to rent to an expat who is considering your place as an alternative to a serviced apartment with all mod cons. If you put in a new double bed, a couple of sheets, a pillow, a soft chair, some cutlery etc which you can get relatively cheaply at the HK IKEA the place will look more welcoming and you will get a better rent. It is unlikely they will be carting around their own furniture.

Posted by spannermonkey (223 days ago)

Agree with walkup. If anything, it will make it easier to let as it looks homely already. Just dont go mad with furnishing and try to be trendy. You may love it, but you may narrow your market - a common mistake. Keep things simple and dont put pictures on the wall. I reckon you could demand 10-20% more for furnished.

Posted by flat hunt (223 days ago)

Thank you. I appreciate your help and advise. I guess I am concerned that if I furnished it I may end up with unwanted...but new furniture to get rid of. I like both the idea of a 'walk in with a suitcase' flat and the basically furnished as I can see merits in both. I'll have to make the decision on what to do!

Posted by Saikunga (222 days ago)

maybe even include a cooker, fridge, and washing machine (if space)

People who want unfurnished won't look at your place - so it does limit the market somewhat - you could always be flexible -offer it as furnished or unfurnished (different rents) keep it unfurnished until you have definite interest - if they want furnishing then put it in for the higher rent and then they could specify what they require....bed, etc..

Posted by mav lui (222 days ago)

Another option if you think buying all new furniture is risky is to purchase 2nd Hand items, this way the flat can really feel like a comfortable "home" when your potential tenant is viewing. I am not spamming here but we can provide all the 2nd hand items that you will require and can even advise on the layout / color scheme to suit the furniture.

You can p.m me for details or check out our advert in the "Stock Clearance" section of these classifieds.

Posted by ldavy (219 days ago)

I would advise not furnishing it. Just supply fridge, washer/dryer, and cooking facilities. A full oven if there's space, a hob burner and a microwave if there isn't.

Lots of expats are looking for flats in Mid-Levels but the vast majority, in my experience, do NOT want fully furnished because they have their own furniture, or they are planning to buy it. Even if they do want a furnished place, they may not have the same taste as you and therefore not want the furniture you have provided.

To keep your options completely open, how about telling agents (if you're using agents) that it's currently unfurnished but you are willing to supply furniture if the tenant requires it? You could then either buy it yourself, or give the tenant an allowance to buy it.

Posted by wongsg (208 days ago)

As a landlord, I prefer to furnish the apartment if it is a small one, say to accommodate just for one person. It is quite unlikely that an expat tenant will take the trouble to move his/her bulky furniture over. Unless the tenancy is for 2 years or more, it is also too troublesome for a tenant to buy and later to dispose of the furniture.

I'd rather not let my tenant do the purchase of furniture which may only meet his/her own particular taste and no others. Instead, I would purchase common furniture that may appeal to the majority of tenants. Then some good photos will definitely help marketing the place for rental. In my own experience, I do it online to let potential expat tenants "view" the place even before they actually arrive in HK.

Rental investment is one dealing with a niche market. We won't capture all tenants anyway. We have to restrict to one particular type of tenants who have special accommodation needs, be it location, size, partition ..... It is a matter of how and when to let availability and requirements match. Good luck.

Posted by gwern (208 days ago)

Thank you for your advise it's really helpful....can you tell me whether or not having furniture in there has stopped people renting? Do you think it's aided the renting? I have been uming and arring for weeks over to buy stuff or not....would hate to buy and then sell off...what do you think attracted tenants? Did you put 'things' out such as bamboo, candles, lamps etc...? I'm new to this game and think I need all the help i can get...

Posted by agentmisschow (208 days ago)

according to my experience, not to buy first is the best, but you may calculate the cost and the time needed to be stand by, of each item (mark the rent include or have to add up with, the best is show the protential tenant pictures of what you can provide and how long to deliver them), especially the electronic appliances, they are the mostly needed. and other option: give an amount of money you may give the tenant to buy the item (of course include in the rent first) which you will agree to stay in the house, means it belongs to you, otherwise, let them buy with their own money and move them out after the rent, unless you dont mind to keep if they ask for (this part have to be careful, think twice to make dicision). I HAVE SEEN MANY CASE THAT THE LANDLORD LIKE THE TENANT WITH A GOOD RENT, BUT DON'T WANT TO THROW AWAY THEIR PREPARED FURN. BUT LATER, THE LANDLORD STILL HAVE TO MOVE THE FURN OUT, BUT RENT TO A TENANT NOT SO LIKE AS THE ONE BEFORE, WASTED TIME AND MONEY. ALWAYS KEEP OPTION IS THE BEST WAY. CALCULATE THE FURN COST LAST FOR ONLY 2 YRS INTO THE RENT. THEN YOU ARE WILLING TO THROW THEM. FOR A MEDIUM CLASS FLAT. CLEAN AND EVERYTHING NEW LOOK. this way, you are the one to choose, and not being choose.

Posted by wongsg (208 days ago)

A small space looks bigger and cozy if it is suitably furnished and decorated.