Furnishing rental properties in Toronto can be a strategic move for landlords looking to maximize their rental income, attract higher-quality tenants, and reduce vacancy periods. However, it also requires careful planning and consideration of tenant demographics, rental market trends, and the operational challenges involved. 

Why Furnish Your Rental Property?

Furnished rentals in Toronto are increasingly popular, especially among certain tenant segments such as corporate travellers and young professionals who prioritize convenience and flexibility. By offering a fully furnished property, landlords can differentiate their listings, potentially leading to higher rental rates and shorter vacancy periods.

Key Benefits of Furnished Rentals

Landlords who offer furnished accommodations can enjoy some significant advantages.

Higher Rental Income

Furnished properties often command a premium, with rental rates typically 20% higher than unfurnished units, or even higher, depending on the property location and the quality of the furnishings. This can lead to an excellent return on investment, especially in high-demand neighbourhoods.

Attracting High-Quality Tenants

Furnished rentals appeal to tenants who are willing to pay more for the convenience of a move-in-ready home. This demographic often includes professionals, digital nomads, and corporate clients, who tend to be more responsible and less likely to cause damage.

Flexibility in Lease 

Furnished properties are ideal for all lengths of leases; landlords can adjust rental rates based on market demand and optimize occupancy rates throughout the year.

Reduced Vacancy Rates

The Toronto rental market is highly competitive; furnishing your property can set it apart from the competition to help it stay occupied.

Considerations When Providing Furnished Rentals

While there are clear advantages to furnishing a rental property, there are factors landlords need to consider.

Initial Costs

Furnishing a property involves an upfront investment in furniture, appliances, and decor. Depending on the quality and scope, this can cost $15,000 or more for a one-bedroom apartment. Sofas, coffee tables, rugs, lamps, beds, dining tables, kitchenware, decorative pieces, and other items need to be provided.

Maintenance

Furnished properties require more upkeep, as landlords are responsible for the condition of the furnishings. This can lead to higher maintenance costs over time, especially if tenants cause wear and tear. Landlords should factor in potential repair or replacement costs when setting rental rates. Choosing sturdy items initially can help reduce the costs of repairing or replacing items.

Management Complexity

Managing a furnished rental can be more time-consuming compared to an unfurnished unit. This includes coordinating cleaning services, regular inspections, and handling tenant requests related to the furnishings. Especially for landlords with multiple properties, this can add a layer of complexity.

Furnished rentals in Toronto

Choosing the Right Furnishing Service

Given the complexities involved, many Toronto landlords opt to work with professional furnishing services. These companies specialize in providing turnkey solutions, from furniture selection and interior design to delivery and setup. Partnering with a furnishing service simplifies management, saves time and ensures your property is presented in the best possible light.

Scope of Services

Some companies offer end-to-end solutions, including furniture rental, interior design consultation, and even property staging for photoshoots. Others may focus solely on furniture sales or rentals. 

Quality of Furniture

The quality of furnishings can significantly impact the attractiveness of your property and the rental rate you can charge. Look for companies that offer durable, stylish furniture that aligns with the preferences of your target tenant demographic. For high-end rentals, custom furnishings or luxury brands are necessary to appeal to discerning tenants.

Rental vs. Purchase

Some furnishing services in Toronto offer furniture for purchase, while others provide rental options. Renting furniture can be a cost-effective solution, especially for landlords testing the furnished rental market or managing short-term rentals, as it reduces upfront costs and allows for flexibility when updating design or replacing worn items.

Delivery and Setup

A key advantage of working with furnishing services is the convenience of delivery and setup. Choose a company that can handle logistics efficiently, especially if you need a quick turnaround between tenants. Some companies also offer cleaning and maintenance services, which can be a valuable add-on for busy landlords.

Pricing Structure

Furnishing services vary widely in terms of pricing; get detailed quotes and be sure to understand what is included. Look for transparent pricing models that fit your budget, and consider the long-term ROI of the investment.

Tailoring to Your Target Market

Understanding your target demographic is crucial when furnishing your rental. A minimalist, modern design may appeal to young professionals in downtown condos, while a more traditional, cozy setup could attract families in suburban homes. Your furnishing service should provide quality, functional pieces that cater to your target market. Some furnishing services can help you design your space and select suitable furnishings to do this effectively.

Damages and Emergencies

Even with excellent tenants, damages can happen. Using a furnishing service means adding valuable items to your property, and there may be situations where these are not covered under a standard landlord insurance policy. Besides reviewing your coverage to determine your coverage, some furnishing services offer coverage and assistance in case of emergency damages. Before using a furnishings service, investigate what help it will provide if there are any emergencies, issues, and other damages.

Comprehensive Furnishings Solutions

Marco Property Management offers a comprehensive furnishing service tailored to Toronto landlords looking to enhance their rental properties and boost returns. Their turnkey solution handles everything from design consultation to set-up, delivering fully furnished spaces within about two weeks. By understanding landlords’ vision, Marco provides multiple tailored design packages featuring high-quality, stylish furnishings that appeal to premium tenants. The entire process is streamlined, with delivery, assembly, and cleanup handled by their team, saving landlords valuable time. They can even help with interior design consultation, to ensure properties are highly attractive and functional, or with emergency furniture replacements.

This personalized and efficient approach helps landlords attract higher-quality tenants, reduce vacancies, and increase rental income, making Marco a go-to option for maximizing property appeal in Toronto’s competitive market.