Advantages of Offering Furnished vs. Unfurnished Rentals

7 June 2025

Renting out your property is a great way to generate passive income, but one big decision landlords face is whether to offer a furnished or unfurnished rental. Each option comes with its own set of advantages, and the right choice depends on your target market, investment goals, and financial considerations.

So, which type of rental is better for you? Let’s dive into the pros of each, so you can make the best decision for your property.

Understanding Furnished vs. Unfurnished Rentals

Before we get into the advantages, let's clarify what these terms actually mean.

A furnished rental is a property that comes with essential furniture and appliances. It typically includes sofas, beds, tables, chairs, and kitchen appliances. Some may even offer linens, dishes, and décor.

An unfurnished rental, on the other hand, comes with little to no furniture—just the basics like kitchen appliances, lighting fixtures, and sometimes window coverings. The tenant is responsible for bringing their own furniture and décor.

Now that we’ve got the definitions down, let’s break down the advantages of each.

Advantages of Offering Furnished Rentals

Furnished rentals are an attractive option for many landlords, especially in high-demand areas. Here’s why:

1. Higher Rental Income

One of the biggest perks of offering a furnished rental is that you can charge higher rent. Since tenants get a move-in-ready space, they’re willing to pay a premium for that convenience.

For example, in cities with a strong demand for short-term rentals, furnished properties often bring in 20-50% more rent compared to unfurnished ones. That’s a major financial boost!

2. Appeals to Short-Term and Corporate Renters

Furnished rentals are ideal for business travelers, students, digital nomads, and temporary workers. These renters typically stay for a few months to a year and prefer a place that doesn’t require them to buy furniture.

If your property is in a big city, near universities, hospitals, or corporate hubs, offering a furnished rental can help you attract these high-paying tenants.

3. Shorter Vacancy Periods

Because furnished rentals cater to a wider audience—including short-term guests and professionals needing temporary housing—they’re less likely to sit vacant for long periods. A well-located, well-furnished property can maintain a steady flow of tenants, keeping your income consistent.

4. Tax Deductions on Furniture and Appliances

When you provide furniture and appliances in your rental, you may be able to write off the cost on your taxes. Items like sofas, beds, tables, and even kitchenware may qualify for depreciation deductions. This can lower your tax burden and increase your profits over time.

5. Less Wear and Tear on the Property

This might sound surprising, but in many cases, furnished rentals experience less damage than unfurnished ones. Why? Because short-term tenants and corporate renters tend to be more careful with furniture they don’t own. Plus, since the unit is typically cleaned and inspected between tenants, any damage is caught and repaired early.

6. Easier to Market and Rent Quickly

A beautifully staged furnished rental can stand out in listings. Professional photos showcasing a stylish, move-in-ready space make it easier to attract tenants quickly. This is especially useful in competitive rental markets where renters are looking for hassle-free options.

Advantages of Offering Unfurnished Rentals

While furnished rentals have their perks, offering an unfurnished property also comes with its own set of benefits. Here’s why some landlords prefer this route:

1. Lower Initial Costs

One of the biggest advantages of offering an unfurnished rental is avoiding the upfront expense of buying furniture, appliances, and décor. Setting up a fully furnished unit can cost thousands of dollars, while an unfurnished rental only requires basic appliances.

This makes it a budget-friendly choice, especially for first-time landlords or those managing multiple properties.

2. Longer Lease Terms and More Stable Tenants

Unfurnished rentals often attract long-term tenants, such as families, professionals, or retirees who prefer to settle down. Since these renters bring their own furniture and personal items, they’re more likely to stay for multiple years, reducing turnover costs and vacancy periods.

3. Lower Maintenance and Replacement Costs

With a furnished unit, you’re responsible for repairing or replacing damaged furniture and appliances. Over time, this can become expensive.

In contrast, an unfurnished rental shifts the responsibility of furniture upkeep to the renter. That means fewer costs and less hassle for you in the long run.

4. Fewer Tenant Complaints About Furniture Issues

When renting out a furnished property, you might get complaints about broken chairs, uncomfortable mattresses, or outdated décor. These issues could lead to frequent repair requests or tenants demanding replacements.

With an unfurnished rental, furniture problems aren’t your concern—making property management smoother and less stressful.

5. Easier to Update Between Tenants

With a furnished rental, you’ll eventually need to replace outdated or worn-out furniture to keep the property appealing.

Unfurnished rentals, on the other hand, are easier to refresh between tenants. A simple coat of paint and minor repairs are usually all that’s needed before welcoming a new renter.

6. Less Risk of Theft or Damage to Furniture

Furnished rentals come with a potential risk: tenants could damage or even steal furniture. While security deposits can help cover damages, dealing with missing or broken items can be a hassle.

With an unfurnished rental, there’s less to worry about since tenants are responsible for their own belongings.

Which Option Is Right for You?

There’s no one-size-fits-all answer—it ultimately depends on your location, target renters, and investment strategy.

- Go furnished if: Your property is in a high-demand area for short-term renters, such as corporate housing, vacation rentals, or student housing. You’re willing to invest in furniture and manage tenant turnover more frequently.
- Go unfurnished if: You want long-term tenants, lower maintenance costs, and a simpler property management experience.

Consider running the numbers to see which option makes the most financial sense for your rental property.

Final Thoughts

Both furnished and unfurnished rentals come with their own set of advantages. If you prefer higher rental income and quick turnovers, a furnished unit may be your best bet. However, if you’re looking for stability, lower maintenance costs, and longer lease terms, then an unfurnished rental might be the way to go.

Whichever route you choose, understanding your market and tenants' needs will always be the key to maximizing your rental income and keeping your property occupied.