Furnished units command higher monthly rent. Whether they earn more depends almost entirely on turnover. The premium is real; so are the costs that come with it.
The case for furnished
Vancouver has steady demand from relocating professionals, medical residents, visiting academics and people between homes. That audience will pay a premium for a unit they can move into with a suitcase, and it is a market most owners ignore.Furnished units also let faster in shoulder seasons, and suit downtown studios and one-bedrooms particularly well.
The costs that offset it
- Turnover. Furnished tenancies are typically shorter. More turnovers means more vacancy, cleaning and advertising.
- Capital outlay. Furnishing a one-bedroom properly is a real upfront number, and it depreciates.
- Wear and replacement. Sofas, mattresses and cookware need replacing on a cycle.
- Disputes. More items means more to inventory, inspect and argue about at move-out.
How to decide
Compare annual net income, not monthly rent. A furnished unit at a premium that turns over twice a year can easily earn less than an unfurnished unit with a stable two-year tenant.Ask three questions: is the unit the right size and location for the furnished market; can you tolerate more turnover; and do you have the capital to furnish it well? Half-furnishing satisfies nobody.
Frequently asked questions
Does a furnished tenancy change my obligations?
The Residential Tenancy Act still applies. Furnishing does not make it a short-term arrangement, and the same rules on deposits, notice and rent increases apply.
How much of a premium is realistic?
It varies by unit type and location, and is strongest for smaller downtown units. The premium narrows as unit size increases.
Should I include utilities and internet?
Usually yes for furnished units. Remember the rent increase cap still applies to the whole bundled amount.
Can I inventory the furnishings?
Yes, and you should — attached to the condition inspection report, with photographs.
Work out which fits your unit
We can compare realistic furnished and unfurnished rents for your property, along with expected days to lease.
Talk to us about your options.
