How To Increase Rental Income Through Furnished Apartments

Have you ever thought about why some rental properties earn so much more than others? The answer might be simpler than you expect: furnishing. While some landlords prefer unfurnished rentals, clever property owners are discovering that adding furniture can really enhance their rental income and attract tenants who are willing to pay extra for the convenience.

Keep in mind that the rental market is becoming more competitive by the day. With so many properties vying for tenants, landlords have to find ways to stand out and improve their returns. So, what can you do to make your rental property a furnished home that tenants can’t resist? This article will share with you the important steps.

Understand Your Target Tenant

Before you even think about buying a single cushion, take a moment to really understand who you want to attract as a tenant. Furnishing carelessly is a recipe for wasted money.

So, are you located near a major hospital and hoping to draw in locum doctors? Or maybe you’re close to a university campus and want to appeal to international students. Perhaps you’re in a busy business district, perfect for executives on short-term assignments. Each of these groups has unique needs and expectations.

For instance, corporate tenants might be looking for a home office setup and high-quality linens, while students often prioritise durability, practicality, and reliable Wi-Fi over luxury. Young professionals, on the other hand, usually seek out modern designs and smart home features.

Essentially, you need to research the demand in your local market. You can also chat with relocation agents, browse competitor listings, and get a feel for what drives furnished rentals in your area. When you customise your furniture, décor, and amenities to fit your ideal tenant profile, you’ll make a smart investment and be able to charge the highest rent they’re willing to pay.

Select Furniture That Pays for Itself

One rookie mistake some property owners make is furnishing their rental for the purpose of ‘filling the space’ or making it look ‘lived-in’. Unfortunately, buying furniture without analysing its value or function to your prospective tenants will only blow your budget. Thus, as much as possible, focus on buying pieces that you know your tenants will surely care about and use daily.

Start in the bedroom. For most tenants (if not all), a solid bedframe and high-quality mattress are non-negotiable. You don’t want to be receiving complaints from your tenants saying that their mattress gave them backaches or neck pains. Or that their mattress is too saggy, so they weren’t getting any good sleep for a week.

Just like how you take their plumbing and electricity seriously, you shouldn’t skimp on your mattress choice either. You may view mattresses here or at similar stores to find options specifically designed for rental durability and comfort.

Meanwhile, when choosing sofas and chairs, stick to neutral, hard-wearing fabrics. These materials can resist stains, are easy to clean, and can handle frequent use well. Storage is another critical element, especially if you’re aiming for long-term tenants. You want to make sure they have enough storage for their clothes and other personal items.

Include Essential Appliances and Modern Conveniences

Nowadays, it’s not just about having a sofa, mattress, and a few storage cabinets anymore. Modern tenants expect furnished apartments to include all the appliances necessary for a comfortable, everyday life. A refrigerator, washing machine, dryer, microwave, and even a dishwasher are now standard features that can really enhance the property’s appeal and help justify a higher rent.

Heating and cooling are particularly important in most Australian climates. Depending on the region, these systems can account for 20% to 50% of a household’s energy use. And yet, not all homes meet this need. According to the National Social Housing Survey 2023, only 68% of public housing tenants said their homes met their thermal comfort needs, pointing to a widespread expectation for better heating and cooling solutions. (1) (2)

This shows that renters place a high value on thermal comfort, and so should you when outfitting your property.

Fast, reliable internet is another essential, especially since many tenants are working from home or studying online. Including internet in the rent can simplify billing and make your rental apartment much more appealing to them.

Of course, you can’t forget about the little things. Affordable appliances like toasters, kettles, and coffee machines might seem minor, but they really complete the living experience. These small additions make your place feel more like a home. Your tenants won’t have to bring their own coffee machines or toasters, making it easier for them to settle in during their first week.

Maintain Your Investment Diligently

Furnished apartments naturally suffer more wear and tear than unfurnished ones simply because tenants use more items. So, you’ve got to stay on top of maintenance to preserve the appeal of your property and protect your rental income.

Make it a habit to conduct routine inspections (in line with your state’s tenancy laws) to assess the condition of furniture, appliances, and fixtures. Address minor repairs before they turn into expensive problems. Staying proactive about wear and tear means you can continue to justify your property’s rent.

It’s also important to respond quickly to tenant repair requests. You’d be surprised to know that 62% of tenants said they worry that the landlords would ignore their request for repairs or maintenance. Don’t be one of those landlords, and instead, show your tenants how responsive you are in addressing tenant repair requests. Not only does this preserve your furnished apartment, but it also keeps your tenants feeling heard and satisfied. (3)

Lastly, schedule professional deep cleans at the end of each lease, especially for short-term rentals. A clean, fresh space helps you secure the next tenant quickly and maintains your property’s good reputation.

Key Takeaway

Furnishing your apartments can be a smart property management strategy, but only when done thoughtfully. It helps you attract higher-quality tenants, set higher rental prices, and maintain an edge in a competitive market. Get to know your ideal renter, invest in sturdy yet cosy furniture, provide modern amenities, and keep up with maintenance. In no time, you can make your property a reliable rental income generator. After all, well-furnished investment properties aren’t only attractive; they’re also profitable.

References:

“Heating and cooling”, Source: https://www.energy.gov.au/households/heating-and-cooling
“Needs of tenants – amenities”, Source: https://www.aihw.gov.au/reports/housing-assistance/national-social-housing-survey-2023/contents/did-amenities-meet-the-needs-of-tenants
“WA Renters Survey”, Source: https://makerentingfairwa.org.au/resources/survey-findings/