As Toronto’s rental market continues to navigate economic shifts and evolving tenant needs in 2025, furnished multiplexes are emerging as a distinct opportunity for landlords. Unlike single-unit properties, multiplexes offer a unique blend of economies of scale and diversified income streams. Landlords can benefit from streamlined maintenance of common areas and shared amenities, which not only help to reduce per-unit operational costs but also provide a built-in cushion against market fluctuations through a diversified tenant base.

The Overlooked Advantage of Furnished Multiplexes

Many multiplex owners traditionally offer unfurnished units, often due to concerns about the upfront costs and maintenance associated with furnishings. This conservative approach may stem from a belief that tenants prefer to bring their own furniture or from uncertainty about whether the additional investment will yield a commensurate increase in rental income.

However, offering units as furnished can unlock additional revenue streams by commanding a rental premium. In a competitive market like Toronto, furnished units appeal to a broader range of tenants—including corporate clients, international newcomers, and transient professionals—who value convenience and immediate occupancy. This differentiation can lead to lower vacancy rates and more predictable cash flow, ultimately enhancing overall return on investment.

Unique Operational Dynamics

Managing a multiplex comes with its own set of challenges and advantages. The ability to negotiate bulk service contracts for cleaning, repairs, and security can lead to significant cost savings compared to handling multiple single-unit properties. However, the complexity of coordinating tenant turnover across several units simultaneously demands a strong, effective property management system to keep turnover disruptions to a minimum and maintain consistent occupancy.

Key Factors to Consider When Furnishing Units

Quality and Durability

Investing in high-quality, durable furnishings is critical. Landlords should select pieces that not only appeal aesthetically but also withstand the wear and tear of frequent tenant turnover. Durable materials reduce the need for frequent replacements and maintenance costs, ensuring long-term savings.

Practical Living with Aesthetic Appeal 

Furnishings should reflect modern design trends that resonate with the target tenant base. Neutral colour schemes and tasteful décor help create a welcoming environment, while subtle design touches can differentiate the property in a crowded market. Tenants in Toronto’s urban areas often expect a certain level of style, but they also demand practical furnishings that fit with their dynamic lifestyle. Pieces must be chosen carefully to be functional and comfortable, as well as look good. 

Operational Considerations

When furnishing units, it is important to consider the ease of maintenance and cleaning. Choosing items that are simple to clean and repair helps streamline operations and reduce turnaround times between tenants. Additionally, furnishing strategies should account for potential customization or updates based on tenant feedback, ensuring that the property remains attractive over time.

Cost-Benefit Analysis and ROI

A thorough cost-benefit analysis is essential. Landlords must weigh the initial investment in furnishings against the potential for increased rental income and tenant retention. Evaluating metrics such as projected premium rents, occupancy rate improvements, and long-term maintenance costs will help determine whether furnishing units is a financially sound decision. However, as of January 2025, the average rent for furnished one-bedroom units rose by about 0.65%, as opposed to rents for unfurnished units, which dropped by 0.59%. Although this may appear to be a small difference, the increase in rent for furnished properties indicates sustained demand and suggests they are less likely to experience vacancies.

Regulatory and Market Considerations

Furnished multiplexes in Toronto are subject to a different regulatory landscape than traditional single-family rentals. Landlords must navigate municipal building codes and multi-unit leasing regulations that emphasize safety and accessibility. Despite these hurdles, the current market data suggests that the demand for well-managed, furnished multiplexes remains steady—driven by corporate relocations, short-term professional assignments, and the increasing trend of renters seeking flexible living arrangements without the long-term commitment of purchasing furniture.

Embracing Technology and Scale

One of the critical factors in the success of multiplex operations is the adoption of advanced property management technologies. Landlords are increasingly leveraging systems that provide real-time occupancy tracking, automated lease renewals, and even energy management solutions across all units. These technologies not only enhance tenant satisfaction but also streamline back-office operations, allowing landlords to focus on strategic growth rather than day-to-day hassles.

Maximizing ROI 

For investors looking to optimize the performance of their furnished multiplexes, Marco Property Management offers a strategic approach tailored to Toronto’s competitive landscape. With deep market insights, specialized tenant placement, thorough screening, and proactive maintenance services, Marco helps landlords navigate the complexities they face – complexities that are compounded when offering multiple rental units. Contact Marco Property Management to learn how their expertise can help you maximize the potential of your furnished multiplex investment.

Marco supports landlords at every stage of the rental process, including furnishing services with professional interior design consultation. Our furnishing packages are delivered in about two weeks, and our team ensures everything is set up correctly on delivery day, so the experience is completely hassle-free for landlords and tenants. We handle all the unpacking and debris removal, leaving your space fully furnished and ready for tenants within just a few hours.