You have a property you want to rent out. This property can be offered unfurnished, unfurnished or furnished. But what is the difference? A bare rental property does not include flooring or window coverings. An unfurnished rental property does have floors, finished walls, window coverings and usually ceiling lights. Finally, with a furnished home, the home is already equipped with an entire inventory. In addition to the floors and window coverings, the furniture is present, linens, electrical appliances and kitchen inventory are all present. A tenant only needs to bring personal belongings. Ideal for people looking for temporary housing and expats.
Target
When you offer a property furnished you are targeting a specific audience. Often these are expats or people who are temporarily looking for housing in Groningen. This can affect how quickly a property is needed (usually they are already looking for housing at short notice), how long the term of the agreement is and possibly financial capacity (for example, when renting to a company).
In the future, temporary leases are likely to be abolished (leases that have an end date). This may be a consideration when preferring to rent for shorter period(s). Typically, expats stay in the rental property for 6 months to 3 years.
Investment
Of course, fully furnishing a home involves an investment. This investment may be charged in full on top of the rent in the form of service charges. The amount of this service charge depends on the investment and the expected life of the inventory. Depreciation is usually 5-10 years. During that time, depreciation may be charged on top of rent. At the expiration of that period, the inventory must be revalued and for the next 5 years this surcharge on the rent applies.
For example: you make an investment of €9,000 to fully furnish the house. This depreciation can be calculated over five years, which means service costs of € 150.00 per month on top of the bare rent.
In addition to revenue, renting out furnished will also incur costs such as repairs and replacement of inventory.
Would renting out furnished be a good option for your property? We can fully advise and relieve you. More information is here(Home Furnishings – Van Der Meulen Brokers). We would be happy to discuss the possibilities for you in a personal meeting.
