EP 34: Furnishing Your Rental Property: Balancing Style, Functionality, and Budget

In this episode of the Property Investors Handbook, host Adam Bell and Colleen Sutherland from Sutherland's Property Management Group dive into the essentials of furnishing rental properties for maximum appeal and functionality. They discuss the pros and cons of offering furnished rentals, the key items every furnished property should include, and how to balance quality and cost when selecting furniture. Whether you're considering furnishing your rental for the first time or looking to optimize your current setup, this episode provides valuable insights to help you make informed decisions. 

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  Welcome to the Property Investors Handbook Podcast. I'm your host, Adam Bell, and today we're gonna have a look into how to furnish your rental properties for maximum appeal and functionality. We're joined again by Colleen Sutherland, owner of Sutherland's Property Management Group, who brings a wealth of experience in optimizing rental spaces.

So let's get some insider tips on furnishing your investment.

Colleen, welcome.

Thank you so much, Adam.

Now, I guess furnishing most places these days are unfurnished, but there is a market for long term furnished apartments. When I say long term, you're not talking your Airbnbs and that sort of thing. So, Can you start by explaining the impact of furnishing on rental appeal?

Again, it has a very small market in this day and age because most people come with their own furniture and they want to make it their own. But if you're forced to, or choose to leave your furniture in the property, my suggestion to you would be to keep it minimal. Because, the tenant will come with some stuff, just not everything.

And I remember back in the 80s when I first moved out of home It was definitely I needed a furnished place because of my sister and I needed a furnished place because we had nothing And we moved to the Gold Coast. We were from Tamborine moved to the Gold Coast for work. Yep, which is understandable Didn't come with a stick of furniture.

And so we had to rent a furnished place So when you're looking at that, you're looking for a shorter term tenant You That is, doesn't come with any furniture, or, a, employment transfer in the bank. Let's just say that one. And they will come up for a 12 month contract to sort something out for their job.

So it would be beneficial for them to

have a rental, have a furnished place. Yes.

To rent a furnished place because they're not here permanently. So you, and since the eighties, you haven't got a long term tenant. Because, it's not theirs, it's not our stuff, and we can just pack up and leave.

Sure. It'd be a few reasons, wouldn't it?

People coming from overseas to spend a year to work.

Yeah, usually an employment

contract. Something to do with employment, isn't it? Yeah. So look, what are the essential items that every rental needs to have when you are offering a furnished place?

So, sleeping. So you need a bed. Usually bedside tables and a chest of drawers and that's in each room.

You'd need a dining table with chairs and, your lounge suite. And then whether you put in a washing machine, dryer, fridge, that's up to you. But just know that whatever furniture is in the property, the landlord will be responsible for its upkeep. So if the washing machine breaks down, you as the landlord has to repair it unless the tenant's not using it right.

Right. Okay. So that's a big key point to understand here. If you are offering furnished, you're up for repairs and maintenance of any of your gear that you are offering, which of course you're not when tenants bring that in themselves. Yeah, when it's

their own. Yeah.

Okay. How do you balance quality and cost when choosing furniture for a rental?

My gut says, you'd probably go less because it's not going to be treated as well as you treat your, your own gear and it's probably going to be knocked around a bit. But how, this is a re, you know, a question that 50 50, isn't it? Quality versus cost.

So whichever one you choose, it, you'll need insurance on it.

But if you've got a really low quality, furniture, then you probably, one, wouldn't need to insure it, and two, don't expect it to last as long as a higher quality piece of furniture.

Sure. What, common furnishing mistakes should landlords avoid? Have you seen some?

I have and that's when you leave your paintings or prints on the walls, you've got vases that can easily be knocked over.

You're wanting to furnish it very basically without all the cutesy zhooshings

that can just break or

be taken even. Yeah, true. Because there is a list, there's an inventory list, whether it's knives and forks or it's beds, there's always an inventory. So, you just want to furnish it to be, Functional.

I think that's the key here, isn't it? Without any bells or whistles whatsoever. Yeah, but

if you get low end stuff, you can buy a bedside table from Kmart for probably $6.00 but if it breaks, And it's highly likely to because it's not solid. Yeah, you need something that's going to function properly.

Okay. Are there any specific styles or themes that tend to attract more tenants to you? Do you, let me put it this way. Do you need to be, you know, aware of making it look really nice, you know, matching things or is that not really that important?

Um, It is important in holiday rentals, because I know I've been to some places, and you've got the cane lounge, and it's so uncomfortable, but it's cheap.

And they can replace pieces. So that to me, if you're getting a, good return on your dollars in a, in holiday or Airbnb, I think it needs to be fully, matching and all that sort of stuff for me on a, residential tenancy lease, it needs to be functional, comfortable, matching. Yes, because aesthetics does count and maybe, you know, matching the theme of the property, but yeah, more functional.

It needs to be.

Okay. Do you recommend professional staging for higher end rental properties?

Staging as in you're going to leave the furniture there and rent it. Yeah, Yes, the hiring of that furniture can get costly. But it is available too. Yes.

Sure. That's at a very top end of the market.

Especially if you've got a high end property, which I have some, and we stage them for photos. Yep. So that, you know, when someone's looking at the photo, they got an idea of, oh yeah, I've got a lounge that would fit there. Yeah. But other than that, no.

Okay. What about health and safety guidelines when getting furniture?

Is there anything to take into account there?

There is, you can't have linen. So. Oh, okay. Yeah, I know. Wow. That surprised you. That's a health and safety thing. So it's sort of like, you hire that piece of linen, so you hire the sheets, the towels, the tea towel, because that can all go out and be professionally cleaned all the time.

So, yes, you need that. And the other thing I wouldn't be putting into a furnished place is electrical appliances. Right. Because, you know, TVs, you know, when they went from analogue to digital to those. So, you can send it back to the high place and get another one.

Yep.

So, yeah, you'd have to really think about what you're going to put into the space.

Especially with electrical appliances. Good tip, good tip. Okay, so look. Any final tips for landlords looking to furnish their properties for the, for the first time?

Yeah, make sure that you look at it as in functionality and then aesthetics and then cost.

Okay.

Because the lower cost, the easier it's going to break.

But look, at the end of the day, I think with this discussion, would I be right in saying You're probably on a better, better thing to be going unfurnished. In, in, in the today's market, in today's world, it's lot less to manage, and more people have got stuff they want to bring in, so that would be ultimately the way to go.

That'd be the way to go if that, if investment is your long term scenario. If it's short term because you've had to go away for a job and you don't want to pack all your stuff up and put it in furniture storage. Then yes, leave it there. Have an insurance on it because, you know, something may happen to anything that you've got in there.

And your first point would be claiming your own insurance. Sure. Sure.

Fantastic. Well look, thanks for tuning in to today's episode on furnishing your rental property. A big thanks to Colleen for sharing her valuable insights. For those looking to enhance their rental spaces, remember the balance of style, functionality and budget that we've talked through today.

Now check out Sutherland's property management group online for more resources. www. Spmg. com. au and join us next time as we continue to explore aspects of property management. Until then, happy investing and thanks once again, Colleen.

Thanks Adam.