If you’re a landlord thinking about renting out your Dubai investment property, you’ve probably asked yourself, “Should I furnish it?” It’s a big decision – one that can have a major impact on your rental income and the types of tenants your unit attracts.
In this blog, we break down the pros and cons of furnishing your Dubai investment property.
Pros of Furnishing Your Dubai Investment Property:
1. Higher Rental Rates
One of the biggest perks of furnishing your rental is the potential to charge higher rent. In cities like Dubai, furnished properties can command up to 30% more rent compared to unfurnished ones. This is especially true for popular areas like Dubai Marina or Downtown, where tenants are willing to pay for the convenience of a move-in-ready home. Furnished properties also appeal to a wider pool of tenants, such as expats and tourists, who are looking for immediate comfort.
2. Faster Leasing Times
Need to get tenants in ASAP for your Dubai investment property? Furnished rentals are known to have shorter vacancy periods. In some urban hotspots, furnished properties rent out up to 50% faster than unfurnished units. This is especially true in cities with a strong expat or tourist presence, like Dubai.
In Dubai real estate, short-term rentals of furnished properties often see occupancy rates of over 75% annually. So, if you’re worried about long gaps between tenants, furnishing your property could be a smart move.
3. Attracting the Right Crowd
Expats don’t want the hassle of buying furniture as they want to settle in quickly, and a furnished home gives them that luxury. Tourists and short-term renters, on the other hand? Well, they almost always want a fully furnished place, whether it’s for a few weeks or several months. Considering expats make up a large portion of the population, this could be a big advantage for your Dubai investment property.
Besides, if your property is in a bustling city like Dubai, London, or New York, furnishing it could be a no-brainer. These areas are filled with expats and tourists who prefer ready-to-live-in spaces. For example, digital nomads flock to cities like Dubai because of its excellent infrastructure and golden visa programs, and they almost exclusively look for furnished rentals.
4. Occupancy Rates Stay High
Because furnished properties appeal to such a wide range of renters, they tend to have higher occupancy rates. In places like Dubai or London, occupancy for furnished rentals often exceeds 85%, especially during peak tourist or expat seasons. And what does high occupancy mean? It means more consistent income for you as a landlord!
5. Short-Term Rental Flexibility
If you furnish your property, you have the option to tap into the short-term rental market. Platforms like Airbnb and Booking.com have made it easier than ever to rent out furnished properties to travelers, which can yield 2-3 times more income than traditional long-term leases. Additionally, furnished properties in tourist-friendly areas with high demand can be rented out at premium prices, offering a higher return on investment.
Cons of Furnishing Your Dubai Investment Property:
While furnishing your rental property has its perks, it’s important to weigh the cons before deciding. Let’s dive into some of the key drawbacks of going the furnished route.
- Higher Upfront Costs
One of the most obvious disadvantages is the initial expense. Furnishing a rental property can be costly, especially if you’re aiming for quality items that will last. Purchasing furniture, electronics, and decor adds up, and it may take a while to recoup these costs through rent. While the return might be higher for furnished properties, the upfront investment required is a significant consideration.
- Risk of Damage
Another concern is the wear and tear on your furnishings. Even if you screen tenants carefully, the risk of damage to furniture, appliances, and other items is always present. Some tenants may not take care of your property the way you would, and frequent repairs or replacements can eat into your profits. Durable, easily replaceable furniture might help reduce this risk, but it’s something you’ll need to keep in mind nevertheless.
- More Maintenance
Lastly, a furnished property often requires more maintenance. With additional items like beds, couches, and kitchen appliances in your unit, you’ll need to keep up with repairs and replacements. Furnished homes might require more frequent updates to stay attractive to potential renters, especially if you’re targeting higher-end tenants or short-term renters, like tourists and expats.
- Limited Customization
Furnishing your rental property also means your tenants won’t have the chance to personalize their living space. This may deter long-term renters who want to add a personal touch using their own furniture and decor. When tenants are unable to bring their personal items, they may not feel fully at home, potentially leading to shorter rental periods.
Let SmartCrowd Handle It All (Yes, Seriously!)
Furnishing your property sounds great, but if you’re not into picking out couches or dealing with maintenance at 2 in the morning, we’ve got you covered. At SmartCrowd, we furnish the units for you as part of our hassle-free rental strategy, meaning you can sit back and relax while we take care of all the heavy lifting.
Here’s how it works:
- Browse Opportunities – Explore our carefully vetted investment properties across Dubai.
- Invest Easily – Make your investment with just a few clicks.
- Earn Monthly Income – Start receiving monthly rental income, with zero effort
The best part? You don’t need to worry about furniture, repairs, or even finding tenants – we handle everything. Whether it’s ensuring the unit stays modern and up to date, or managing tenant turnover, our team takes care of it all.
The Bottom Line
So, should you furnish your rental property? If your property is in a popular urban area or a tourist hotspot, like Dubai, the answer is probably yes. Furnished properties can bring in higher rents, faster occupancy, and a broader range of tenants.
Of course, there are some extra costs associated with furnishing a property. Maintenance, repairs, and wear and tear are all factors to think about. Furnished properties will likely need more attention, especially with a higher turnover of tenants. However, these costs are often offset by the higher rental income and shorter vacancy periods.
But, before you decide, take a good look at your market and property location. If you’re chasing higher returns and more rental flexibility, going fully furnished could be the key to maximizing your Dubai investment property. And remember, with SmartCrowd, you get to enjoy the benefits of property ownership without even lifting a finger. It’s completely hassle-free, so you can focus on what really matters here – growing your wealth, the smart way!
Disclaimer: This blog is intended solely for educational purposes and shouldn’t be treated as financial advice. We suggest you always conduct thorough research, perform your own due diligence, and consult with financial advisors to assess any real estate property against your own financial goals.
