Furnished rentals usually work best in locations with strong demand for short- to medium-term stays. This includes properties near hospitals, universities, major infrastructure projects, mining hubs, or inner-city areas where hotels are expensive.

Regional and coastal hubs with fly-in, fly-out workers and tourist areas can also present good opportunities to maximise returns by offering a property fully furnished to the local rental market.

Professionals on short contracts, medical staff, FIFO workers, students, and people relocating or renovating are common tenants. Although many start on short leases, they often extend and stay longer than expected.

Furnished properties can be a smart way to generate additional income from your investment. Units, in particular, often appeal to short-term renters. On the flipside, furnished rentals can narrow your tenant pool, as not everyone wants or needs furniture.

If an apartment building offers added amenities such as a gym, pool, or communal workspaces, a fully furnished setup can make your investment property even more attractive to renters.

Additionally, the quality of furniture does play a role in attracting tenants. While you don’t need to purchase upmarket furniture, mismatched second-hand furnishings won’t impress potential renters. Therefore, aim for a coordinated style with good-quality furnishings that create a welcoming and professional feel. Durable, mid-range furniture is usually the sweet spot.

There aren’t strict rules or timelines on when to replace furniture, but mattresses should possibly be replaced after several years. Using mattress protectors is also essential.

Interestingly, furnished rentals can sometimes keep tenants longer than expected. For example, there are plenty of instances where a tenant plans to rent a fully furnished apartment for only a few months but has ended up living there for many years. Circumstances change, and a furnished property can provide flexibility that appeals to tenants.

An often-overlooked advantage of a fully furnished rental property is the reduced risk of damage from tenants moving in and out. With quality furnishings already provided, there’s less chance of scratches, dents, or accidental wear and tear when moving heavy items such as refrigerators and lounge suites on walls, floors, and doorways, ultimately helping safeguard your investment.

On the issue of wear and tear, landlords may be able to claim depreciation on furniture, whitegoods, and appliances provided with a furnished property. This can offset some of the upfront cost of setting up the property – and it’s a good idea to seek advice from your accountant before deciding whether to furnish a rental property.

It’s also important to check that your landlord insurance includes contents cover for furnished rentals.

For advice on whether to rent your investment property fully furnished, speak with your local Raine & Horne Property Manager for expert guidance.