For property investors in Tasmania, choosing to lease a property as furnished or unfurnished can significantly impact your rental returns, tenancy length, and overall management approach. Understanding the pros and cons of each option helps align your strategy with your financial goals and target market.
Furnished Properties: Flexibility and Higher Returns
Furnished rentals offer strong appeal to short-term tenants, such as professionals, students, and expats, particularly in Hobart and Launceston. These move-in-ready options often attract higher weekly rents and can lease quickly in niche markets such as corporate housing or executive relocations.
From a tax perspective, depreciation on furniture and whitegoods can be claimed, providing potential benefits at tax time. However, the trade-off is higher initial investment and ongoing maintenance. Furniture and appliances are subject to wear, damage, and the need for regular replacement. Additionally, furnished properties may experience higher turnover and shorter lease durations, leading to increased vacancy risk.
Unfurnished Properties: Stability and Lower Overheads
Unfurnished rentals typically appeal to long-term tenants—families or individuals seeking a more permanent base. These properties generally have lower maintenance costs and a broader market appeal across suburban and regional Tasmania. Without furniture to maintain or replace, landlords face fewer ongoing expenses and lower upfront costs.
Tenants who furnish their own homes are also more likely to stay longer, reducing turnover and minimising vacancy gaps. However, rental yields on unfurnished properties are generally lower, and they may not attract tenants who require short-term convenience or temporary accommodation.
Which Option is Right for You?
Consider your target market, location, and investment goals. If your property is located near UTAS or TAFE campuses, major hospitals or in the city centres, a furnished option might maximise your rental yield. For suburban or family-oriented areas, unfurnished may provide more stable, long-term tenancy.
For personalised advice on leasing strategy or current market insights, don’t hesitate to contact me for a commitment-free discussion.
Nikita Reeve, Residential Property Management Consultant
