Rent property in Malaysia (Furnished or unfurnished)

For the last few years, the property market has been soft, but we believe that tides is about to change.

According to Datuk Eu, the Deputy chairman of I-Bhd stated that “the ratio between the number loan submissions and S&P agreements signed over the past three years had improved”. Good economic signs often translate to better rental revenues as well.

The main challenge of a Landlord is getting a good Tenant. While sometimes they could just come along, there are few ways that can help get Tenant to notice your property. The big question is whether to rent your property furnished or unfurnished. Let’s explore each options:

 

 

Furnished Property

It is important to note that a furnished place is like garnish. If your property in located at a quite a distance from the city), or perhaps the building over the years lack the appeal, then it makes sense to dress up your place by providing a little more amenity. Convenience often sells. Such as microwave, kitchen cabinets, lighting, fans, air-conditioning, washing machine are all tools of convenience and could even help you attract a Tenant. It will definitely improve the aesthetic look of your interior.

It is good to ask around your Property Agent on what is the fair market value and market demand in your area. If the market demand is a little weak, a small renovation could boost the chances of your unit over the rest. Most unit especially condominiums already have pre-installed air conditioning and water heater. You could add lights and fans and it will still be partially furnished.

 

 

 

Here are the Keys Advantages of renting a furnished property:

  1. Improve the chance of getting Tenant.
  2. Saves Tenant time and money.
  3. Charge higher rental fees.
  4. Can reuse furniture so it is not a progressive cost.

Disadvantages:

  1. Tenant may not have long term stay in mind.
  2. It will raise the overall cost.
  3. The risk of damage especially from careless Tenants (unless it is properly insured or extended warranty).

 

Unfurnished Property

Tenants prefer unfurnished place as they may want to renovate the place themselves. This could be good news as Tenants who spent money on renovation often have expectation of longer duration of stay. These Tenants may demand for lower rental fees as well and sometimes lower than market value. While lowering rental cost may sound bad in the short run, in the long run it could be a more consistent returns of rental investment. So as long Tenant is not unreasonable, you should consider the discount as a return of goodwill to a long-term partnership.

 

Here are the Keys Advantages of renting a unfurnished property:

  1. Tenant tend to stay longer due to the amount they invested in renovating the property.
  2. You save money on insurance as you are not responsible for insuring any furniture or items brought into the property.
  3. Do not have to worry about the possibility of damaged or wear and tear.

 

Whether furnished or unfurnished, remember the key objective is to rent out your property. If the property you own is new, you could try first to go unfurnished and see if you managed to get Tenants. It is always best to:

  1. Find out the market value of both furnished and unfurnished
  2. The demand of your property (for example the occupancy rate)

If you need help or time is a factor, you can always get help with our Agent to assist you with your property.