Friday, August 12, 2011
Should I rent out furnished or unfurnished?
In my opinion, if you were to put in furnishings into a 3-bedroom apartment, the furniture and home appliance could easily cost RM4000. At RM100 increased rental per month, it will take 40 months (3 years and 4 months) just to recover the costs of the furnishings. For me, I would furnish only if the increase in rental is substantial, for example RM400 more. Then it will take 10 months to recover the furniture costs, and then from the 11th month onwards it would be really cash flow for a few years. So I told my friend if a furnished unit could only fetch RM100 more per month, then rent it out as bare unit.