To furnish or not?

A common question that we brokers get is whether or not the owner should furnish a rental property. Do prospective tenants appreciate a plug-and-play setup? Or do they want to bring in their furniture?

In general terms, it's best to have the basic furnishing of items tenants wouldn't likely bring around between rental properties. These include immovables (e.g., a/c), bed frames, dining sets, and fixed kitchen equipment (e.g., a refrigerator and a cooking range). It's easier to keep an open slate than to have something prospective tenants would ask to be moved out because they're bringing in their own (e.g., mattress, couch, etc.).

As to the choice of furniture, keep it as basic as possible. Avoid "smart" appliances (e.g., automatic lighting) since they're a huge problem when they break down–and they often do.

Avoid transferring your used furniture from your home over to the rental property. In most cases, the overall feel of the property would be chop suey.

Buy furniture that would last for around three years–not a lifetime (think SM furniture). I've seen tenants request old furniture to be taken out because they look used, yet the owner refuses because they're expensive. It's better to have SM furniture you replace every three years than have something expensive you expect to keep for ten years. Reupholstering furniture can cost as much as a brand-new one.

The story's slightly different regarding high-end properties renting out for more than Php200,000/month. It's best to keep these properties unfurnished. People who could afford a Php200,000/month rent likely have impeccable taste. They either have their furniture to bring in, or they would instead purchase their own.

Lastly, it would pay to have some storage space near your rental property, just in case prospective tenants want certain items taken out. Landlords who have the flexibility for items to be taken out always wins.