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Friday, August 12, 2011

Should I rent out furnished or unfurnished?

A friend asked me if she should rent out her apartment furnished or unfurnished.  The rental for empty unit is around RM900, and she plans to furnish it fully and rent out at higher rental - RM1000.
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.


  1. Eun-yong, what's the range of increased rental of your furnished units?

  2. hm.. the cost of furniture and electrical appliances should be settled within 10 - 15 months. then ok la...

  3. Ok, that's a reasonable rule of thumb.

  4. Furnished is the best. You know how much money people spend in furniture? It´s better that way. I did it when I went to Argentina for a year to study. I got an apartment for rent in buenos aires that had all the appliances, it was a hit!