Should I Rent a Furnished or Unfurnished Apartment?

If you’re looking to rent an apartment, you’ve probably asked “should I rent a furnished or unfurnished apartment?” And it’s a good question to ask. There are benefits and drawbacks to both options, but the right choice is usually a very personal one. Though furnished apartments are less common and usually more expensive, the hassle of buying and moving furniture make furnished alternatives an attractive option.

On the other hand, the flexibility to design your apartment according to your own needs and style are major pros for unfurnished apartments. So let’s take a closer look at the benefits of furnished and unfurnished apartments so you can make the educated choice.

Furnished Apartments

Usually equipped with basic furniture, appliances, tableware, and bathroom accoutrement, there is some variability among furnished apartments with respect to exactly what “furnished” means. As such, it’s always best to check with the landlord before you decide on an apartment. Nevertheless, there are many distinct benefits to renting furnished apartments.

Simplicity

Moving into a furnished apartment couldn’t be easier. If you move a lot because of your job or lifestyle, you probably intentionally pack light. By renting a furnished apartment, you avoid the need to move large items like beds, couches, and appliances. And that’s one of the major benefits of renting a furnished place – moving is easy!

Cost

While rent tends to be higher in furnished apartments, the cost of furniture is saved. Even in the long term, renting a furnished apartment can save you money as you’ll never be responsible for the cost of replacing old or broken items.

Emergencies

If you have to relocate on short notice, or you’re intending on only a short-term rental, furnished apartments are a great option. Especially if you already know you won’t have a lot of furniture to move, a furnished rental can take the hassle out of last-minute move.

Unfurnished Apartments

It’s obviously much more common to find unfurnished apartments. In most Canadian cities, these rentals include only major appliances (such as the fridge and oven) and sometimes a washer/dryer or dishwasher. There are also a number of benefits associated with unfurnished apartments.

Fit

Unfurnished apartments give you the flexibility to design your life as you see fit. You can style your living space according to your own personal preferences, and when you’re ready for a change, you have the freedom to make it.

Cheaper Rent

Typically, furnished apartments are more expensive to rent and often have higher security deposits. So, if you already have furniture, it doesn’t really make sense to rent a furnished apartment – unless of course you’re looking for a short-term lease. With an unfurnished rental, you’ll also have more flexibility with respect to where you live and your budget.

Liability

Finally, when you rent a furnished apartment, you’ll be responsible not only for the apartment but all the furniture. If you have some kind of accident and stain or ruin the furniture, you’ll be responsible for replacing it.

Should I Rent a Furnished or Unfurnished Apartment?

Furnished Apartments

Simplicity

Cost

Emergencies

Unfurnished Apartments

Fit

Cheaper Rent

Liability

How to Choose Good Tenants

Difficulties with tenants can often be avoided before they begin. If you speak to experienced landlords who have been managing tenants for years or even decades, they’ll probably tell you it’s impossible to avoid the occasional bad seed, but careful screening of and proper communication with potential renters can help minimize problems.

Screening

During the early stages of a new tenant relationship, due diligence is incredibly important. At the end of your first meeting, prospective landlords (and even renters) need to ensure their interests are met before entering into a tenancy contract. When you’re screening future tenants, you obviously want to ask for proof of identity and conduct a credit check. Some other steps in screening include:

Ask for references (from past landlords or even character references).
Contact previous landlords and ask about past renting behaviour – did the tenant pay rent on time, were there complaints about the tenant.
Confirm the renter’s income by contacting their current employer.
Confirm the number of people that will be living in the unit and don’t be afraid to screen them as thoroughly as the main tenant.

It’s your Business

Remember that your rental property is a source of income for you and you should treat it as any other business. Rental income doesn’t just magically appear every month with no effort from you. You need to maintain the property and conduct necessary repairs, not only to meet your tenant’s rights but also to ensure the quality of your property. Repairs and maintenance are tax deductible, and also give you an opportunity to inspect the property for other signs of damage. And speaking of inspections, your yearly fire alarm inspections are the perfect opportunity for you to review the property and check for any problems.

Reviewing the Property

Once you have chosen your tenant, you should always review the property with the tenant before they move in. As part of any rental agreement, you should outline current damage in the home or suite and include it in the rental agreement. If you want to be certain of proof of pre-existing damage (or the lack thereof) in the unit, you should consider recording your tour of the property with the tenant.

A Signed Agreement

Always, always, always get a signed rental agreement from your tenant. This should include all the necessary elements of the agreement including the number of parties allowed to live in the property, the cost of rent, the length of the agreement, the amount of damage deposit, and other landlord and tenant responsibilities. Many Canadian provinces, including British Columbia have strict guidelines about tenancy agreements, and you can often download free agreements online. Just remember to screen your renters properly, care for your property, and always sign a rental agreement and you should have fewer problems with bad tenants.

5 Ways to Get Tenants to Sign Lease Agreements

Whether you are working with new tenants or an extension for existing tenants, getting them to sign a lease before move-in day or the expiry of the current lease can be a real struggle. It’s not necessarily a case of tenants dodging commitments (although, they may be looking for other rental opportunities), but whatever the challenges, your agency probably has clear policies around lease agreements. If you want to save your staff from frantically pursuing tenants every month, one of these five simple methods for getting tenants to sign lease agreements should help.

Start Early

First and foremost, you want to start the lease renewal process as early as possible. By beginning the process as much as three months before the lease expires, you can secure a future term for the landlord and leaseholder well in advance. This guarantees the landlord has time to find a new tenant, but also gives the tenant peace of mind. Moreover, should the landlord prefer not to renew, you have plenty of time to notify the tenant that they must vacate.

Sign New Leases Immediately

You should always get new tenants to sign your lease as soon as they accept the rental agreement. Most rental agreements include a damage deposit, so you can always get your tenant to sign a lease once the deposit is collected. Aim to have the lease signed and deposit collected within 24 hours of the tenant accepting the property. Again, this procedure is of benefit to the tenant. Before the lease is signed, there is nothing preventing a landlord from seeking other clients. Signing the lease immediately ensures the tenant has a legal right to occupy the property. The landlord is satisfied that a tenant has been found, and you collect your commission in a timely manner. Everybody wins! More about rental agreement here.

Clearly Outline Procedures

Your agency leasing process and policies should not only be clearly outlined, but should be a straightforward and simple process. Securing lease agreements in a timely manner is the ideal situation for the landlord and the leasing agent. Set clear expectations for the tenant, including timelines so that everybody understands their role and responsibilities. When people know what to expect, they are more likely to adhere to policies.

Provide an Incentive

In addition to the security of knowing they have secured a property, small lease signing gifts can be a great way to motivate tenants to sign leases – especially in competitive rental markets. Vouchers for local events, restaurants, gyms, or salons are inexpensive but might provide the incentive you need to get your tenants to sign new leases.

Highlight the Benefits

Finally, when tenants are reluctant to sign leases, you want to highlight the benefits of signing quickly. Obviously, you can remind them that signing the lease secures the property, but they may also need to know a bit more about the location and the rental market. Having a better understanding of the value of their property by providing a bit of market research and reviewing amenities available near or on the property can be a great motivator for tenants to sign.