Furnished Or Unfurnished Investment Property?
Furnished or unfurnished... one of the many decisions that property investors have to make before letting their buy-to-let investment property.
When considering a traditional buy-to-let scenario, this decision may depend on tenant requirements in the local letting market and feedback/advice from local letting agents.
However, when considering an investment property within a resort, there really is only one option - furnished.
Expecting tourists to visit a 5 star resort in the Caribbean, for example, and expecting them to supply their own furniture for their short stay is obviously unreasonable and a business model which is never going to take off.
Therefore, it is essential, when investing in a resort investment property, to make provision for full furnishings, including a safe, telephone and even a television, entertainment system and mini-bar.
It is most likely that furnishings will need to be the same, or similar, in properties throughout the entire resort, rather than individual decoration, furniture and tastes being imposed on bemused guests.
When purchasing a resort investment property, would you like to keep your setup costs to a minimum? Of course you would...
Many developers will offer full furnishings as part of the property purchase price, which allows them to retain control of the decor throughout the resort.
If furnishings are not included, the developer will most likely offer a furniture package at an additional cost, which may even provide the investor with a limited choice of furnishing packages.
To lower your costs and maximise your investment return, ensure that your resort investment property includes full furnishings, so that the property is ready to rent from day 1 after completion.
Furnishings are essential for resort investment property and it is unlikely that any mortgage available will cover the additional cost of furnishing, unless included within the original purchase price.
Another golden rule is not to insist on being involved in the selection of furnishing for your investment property, or colour schemes, etc.
Leave this to the experts, separate your personal taste from your resort investment property and let the resort operator maximise your rental income.