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Renting fully furnished properties

Alvaro Sanchez

Alvaro Sanchez

Ottawa-Gatineau Investor
Registered
Joined
Jun 5, 2009
Messages
966
I have two condos in downtown (Ottawa-Gatineau) which I rent on a yearly basis. Both of them are easy to rent and cover all costs. However, I am thinking of renting them fully furnished as I can get better returns.

I am hesitating as to whether to buy the furniture or lease the furniture using a rent-to-own type of services. I appreciate your comments:

Does anybody have any comments or experience? Tax wise is it better lease?

Regards
 
QUOTE (asanchez @ Aug 24 2009, 07:58 PM) I have two condos in downtown (Ottawa-Gatineau) which I rent on a yearly basis. Both of them are easy to rent and cover all costs. However, I am thinking of renting them fully furnished as I can get better returns.

I am hesitating as to whether to buy the furniture or lease the furniture using a rent-to-own type of services. I appreciate your comments:

Does anybody have any comments or experience? Tax wise is it better lease?

Regards
a different business altogether.

Who will replace TVs, DVD player, missing cutlery or pictures ? you ? @ midnight ? in what timeframe ? 2 minutes ? 2 hours ? 2 days ?

property management issues have to be CAREFULLY researched .. with a properly worded lease. Consider the property management hassles before spending thousands on furniture etc. .. it may be worth the hassles .. it may not .. minimum leases may apply in your area as a shorter time frame coudl be construed as "commercial" or "hotel" and may not be allowed in your property !
 
I believe there would also be a greater liability in renting fully furnished, so you may want to speak with your insurance company.

e.g. are you liable when the tenant stands on your chair to reach something on the top shelf, and the chair breaks and the break their arm?

Maybe I`m over cautious, but it may be something to check out.
 
I have no experience with renting furnished units, however I`ve frequently thought that doing so in the Ottawa-Gatineau area would be a good idea. My day job is with the federal government, and the number of 6 month/12 month/2 year temporary assignments available in Ottawa is substantial. The travel allowances available to these employees is generous and your tenants would generally be very reliable and responsible.

Alison Keighan
 
Well, I have been approached couple of time in regards to having suites fully furnished. My main clients are government employees on temporary assignments and consultants. I have already contacted the company that has the sole outsource contract (RFP) with the government. They facilitate the link between government departments and property owners at no cost to the owner.

I will check on the following items:

- Property managements and minimum leases as to verify if it`s permitted by the condo corporation and city bylaws. Yet, I am aware that several property owners are doing the same in the area.
- Insurance cost and liability.
- I will most likely will arrange to lease the furniture with a local business as they usually offer replacement services and warranties, etc.
- I will probably start with one condo and see how it goes.

If I a missing anything, please let me know

Regards
 
QUOTE (asanchez @ Aug 24 2009, 09:58 PM) I have two condos in downtown (Ottawa-Gatineau) which I rent on a yearly basis. Both of them are easy to rent and cover all costs. However, I am thinking of renting them fully furnished as I can get better returns.

I am hesitating as to whether to buy the furniture or lease the furniture using a rent-to-own type of services. I appreciate your comments:

Does anybody have any comments or experience? Tax wise is it better lease?

Regards

There are lots of short term rental companies out there that will manage your property. I would suggest seeking one out and getting them to review your property. It may cost you a little more than the average property manager, but you get more rent and likely your property will become more profitable.
 
QUOTE (InvestagainInc @ Sep 10 2009, 06:43 AM) There are lots of short term rental companies out there that will manage your property. I would suggest seeking one out and getting them to review your property. It may cost you a little more than the average property manager, but you get more rent and likely your property will become more profitable.
No damage deposits in Ontario = don`t rent out furnished apartments.

Even charging extra or a deposit for a big screen tv or nice sofa will be viewed as "illegal rent" by the system.
 
Both properties are in Quebec.

QUOTE (ontariolandlord @ Sep 11 2009, 02:15 PM) No damage deposits in Ontario = don`t rent out furnished apartments.

Even charging extra or a deposit for a big screen tv or nice sofa will be viewed as "illegal rent" by the system.
 
QUOTE (asanchez @ Sep 12 2009, 05:29 PM) Both properties are in Quebec.
I am not sure, but believe that Quebec may also not allow damage deposits.

You may think: they won`t ruin their credit. I once thought that as well.

But one scratched table, ripped sofa and dirty cushions, remote control with the button wrecked, etc. may not seem like much to the tenants, and likely won`t mean much to a small claims court judge, but will mean a lot to the next person you hope to rent out to and could easily end up costing you thousands of dollars.

Good luck.
 
I thought damage deposits were allowed in Ontario for Short Term Leases. Fully furnished units are sought after by Insurance Co`s who need to put clients into short term housing after a fire or what ever while their home is being repaired.

Doug
 
QUOTE (dplummer @ Sep 13 2009, 07:31 AM) I thought damage deposits were allowed in Ontario for Short Term Leases. Fully furnished units are sought after by Insurance Co`s who need to put clients into short term housing after a fire or what ever while their home is being repaired.

Doug
Nope.
 
I would research your condo and see what people are paying for a furnished vs unfurnished apartment. If the difference is not much don`t bother. However if it`s greater then the 8%-10% ROI rule definitely consider it.
 
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