Australia is considered to be one of the most popular holiday destinations and a great source of attraction to immigrants. In such a scenario, the business of renting and being rented is at its peak. Tourists, foreigners and students who visit the country for sightseeing and education are further strengthening the trend of leasing apartments.
Among the most popular cities in Australia, Sydney is considered to be favoured among the tourists who wish to benefit from the tourist attractions in the city. With the increase in temporary visitors in the area, people give preference to furnished rental models instead of unfurnished apartments. The property owners have also customized their flats in accordance with the inclination of the customers to prefer furnished rentals in Sydney and Furnished Properties Pty Ltd, and are investing heavily on this new business opportunity.
Average rental furniture.
An investor would like to get maximum output with minimum chances of loss and renting out a property is an ideal way of doing so. Unlike in business or trade, where the investor anticipates losses according to the demand and supply chain renting provides with the least chance of loss. The two basic types of renting consist of short-term tenants and long-term tenants.
People who prefer to stay in the city for a shorter period tend to go for furnished rentals as it synchronizes with their needs and desires. An average furnished bedroom would consist of a studying table, a lamp, a bed for sleeping, 2 chairs and sofa perched up for the customer. Iron and a fridge are also present inside the room alongside a television set.
The increase in the facilities leads to increase in the cost because of which furnished rooms and apartments give the impression of heavy expenditure without much use. The stats however indicate that furnished lodges have been observed to be more beneficial (financially) to the ones who rents out and economically more convenient to the tenants.
Here are a few benefits of renting furnished apartments:
Here is how furnished apartments help minimize cost:
1- Less damage to furniture
2- Worn off depreciation
3- Tax benefits
Here is how it helps in maximizing profits:
1- Higher rent received
2- Frequent customers
3- Little or no damage to property
monetary and non monetary
-From the landlord’s point of view:
- Great package: The customer sees the facilities as an added expenditure and is willing to pay more for it. If you present the furnished flat to your prospective tenant and demand, an outrageous rent, the customer will be expecting it beforehand.
- Higher rents: One good thing about furnished rentals from the landlord’s perspective is that mostly the tenants who are in need of furnished apartments are there to stay for a short time period. That enables the landlord to frequently rent out their flats while taking more rent side by side. Charging more and frequent short term customers make the business over all more profitable
- Least damage to furniture: As discussed the tenants who take residence in these apartments are usually there for a short time period. The shorter the people live in a house the lesser the chances of the furniture being damaged. In addition, the depreciation of the furniture helps the landlord as it causes the tax imposed on it to lessen.
- Tax benefits: Usually when a business does well and achieves higher level of profits the government is keen to put higher taxes on the utilities used. In the matter of renting furnished apartments, however the government cannot charge high on depreciable furniture on which the owner pays the depreciation already. So higher profit achieved without the need to pay a decent amount in the taxation levied.
-From the tenant’s point of view:
- Tension free movements: When a family moves or shifts frequently they take great care in the furniture they buy. Some people believe that moving with heavy furniture is a big hassle and thus the concept of furnished apartment emerges presenting the feasibility of shifting without having to travel with heavy furniture.
- More personalized space: No matter how comfortable a hotel room might be, it still gives a touch of artificial coziness with the standardized setting of the furniture. In a furnished apartment, the variety of furniture in its style and placement provides a home like feeling for the tenant.
- Feasibility for customer: Students who come from abroad miss their homes and do not have time to rent a flat and furnish it themselves. They are also not very particular about the furniture they use and their needs are very simple. It goes for the visiting families as well, who do not have much time to think about the placements and designs of the fittings and fixtures. They appreciate the feasibility of an already furnished flat at hand.
- Additional benefits: In posh areas, the furniture is very chic. This enables the tenant to enjoy the apartment full of expensive and stylish furniture (without having to afford the cost of owning the furniture). Getting to use elegant and stylish accessories without paying for their actual cost is surely a overriding factor for those who have good and expensive taste in house hold furniture.
The last word
Furnished property rentals are a superb and convenient way to make money. This is trending and more properties are going on rentals duly furnished. It has obvious benefits for the renter and tenant alike. If you happen to be an owner who has been renting his property unfurnished in the past, this is time to invest a little more and reap richer dividends in future. This is surely a great property rental model in Sydney