Property in Cyprus: furnished or unfurnished rental?
In the real estate industry, there are a lot of investment opportunities. But it's not always about buying. For many, a long-term rental decision for luxurious properties is an excellent investment. The Cyprus marketplace offers a wide range of great rental options. And when searching and consulting with an estate agent, the question arises: is a furnished or unfurnished rental better?
The debate is always present, and there are a wide variety of options. Many argue that there are many benefits to renting a furnished or semi-furnished property. This implies an even higher rent. But there are also downsides to be aware of.
Licensed real estate are the right people to help us evaluate the pros and cons when renting. In this post, we will discuss which are the best alternatives according to the claims of the interested parties.
First, let us know that a furnished apartment has the necessary furniture to live comfortably. It is essential to know that they will have a higher value than one that does not have them. This is due to the logical depreciation that the furniture in the house will have for rent.
Now: it is vital to distinguish furnished from fully furnished. Why? Simply because a fully furnished one offers a wide range of things to those who move, they should not buy anything else to live comfortably.
A tenant must enter his new home and find everything necessary to live: bedrooms, bathrooms, living room, and kitchens, all have to be complete.
Estate in Cyprus has plenty of opportunities for those who want to rent this way. It often happens that some people do not want to invest in a property and prefer that their significant investment be focused on the stock market, for example. In this way, they live in a high-quality property while investing in stocks and other business alternatives.
Returning to the furnished properties, it is good to know that they must have a living room with a sofa, armchairs, shelves, tables, and lamps. The dining room should have a large table and chairs. A bedroom should have one or two beds, night tables with their respective lamps, a desk, an LCD, and other amenities. Also, all these rooms in the house must have curtains, lights, and their spots. A bathroom also must be complete: have a shower curtain, the mat, a garbage can, the furniture of a bathroom, and shelves. As for the kitchen, it must be fully equipped, including all appliances.
For a Cyprus real estate agent, a semi-furnished apartment consists of a property that only offers some basic furniture: a bed, an armchair, and some minor items.
So, what are the advantages of renting a furnished property?
Many renters find a significant advantage in renting a furnished property, for starters, as they do not have to go shopping for furniture and appliances. The price difference varies depending on the city. The Cyprus real estate market offers a wide range of opportunities. For example, there are offices in Nicosia with properties for sale that turn to rent apartments and furnished houses, as they find it a very profitable investment. And they know that there are clients of all tastes in the property market.
In any case, the rental time will be vital to know if it is a good decision or not. It is not uncommon to find that a furnished apartment rents up to 40% more than an unfurnished one.
The security deposit is higher for fully furnished apartments. With this, the property owner can cover the costs of having to replace or repair furniture.
Who chooses furnished apartments? When resale properties are not the best option, licensed estate agents focus on tenants who can afford furnished apartments or houses: young professionals, young families, students, or people who focus on investments other than real estate.
Three cons of renting furnished properties
After the analysis is carried out, we must consider the cons since the disadvantages exist. Among them, we can find the following:
Increased potential for damage: furniture repair and replacement increase when renting a fully furnished property. Furniture wears out, and owners must plan for replacement and repair.
Higher turnover: those who rent a furnished property tend to enter short-term contracts, especially young professionals, singles, students, and young families.
Storage costs: Although it seems unnecessary, some tenants want to incorporate some of their furniture into a furnished property. This forces the owner to relocate furniture elsewhere, and even this can generate an unforeseen cost.