The advice I've received in the past about furnishing an apartment has been don't bother as the difference in rent is not worth the cost and hassle.

What do others think about furnishing in poland though?

My gross rent has been estimated at: 1300pln /month. The furnature pack 21,955pln (or a cheaper one at 14091).

It will therefore cost either 11 or 16 months worth of rent to furnish the 1 bed apartment before any management/accountancy/maintanance fees.

Is it really worth furnishing? Over say 5 years would I loose over 16 months rent if I didn't bother?

Good question Dave

I have 3 apartments in Poland and I too have been wondering the same.

I think the question is not so much what will you lose in terms of difference in rents, but will it rent at all if it's not furnished?

I've spoken to a few letting agents in Poland about this, and so far the general consensus seems to be that yes it will...for not much less.

That said, I haven't explored the issue in great detail, or yet made a decison myself.

Dan

I'm currently thinking that for the one bed apartment I should purchase the basics; light fittings, window blinds, washing machine and perhaps the built in wardrobe which comes to around: 7224pln (about 6 months rent).

I have two other studios which I think do need furnishing as I imagine people moving into a studio are less likely to have their own furniture. This however is a complete guess.

It would be great to see some stats on this. For example maybe it takes longer to get a tennent if the property is unfurnished, but are they perhaps better tennets, do they stick around for longer for example?

For what it is worth I too have been wrangling over this for Pelikan Court.

Initially I was going unfurnished since as you say the payback very long.

Then I thought part furnish and see how it goes.

I was advised that most apartments are furnished and letting unfurnished is a bit of an unknown, more likely to lead to early voids.

Assuming as a minimum you would need lights and blinds and let’s say your wardrobe and washing machine then your half way there to your 14000 PLN.

So the furnishing part is only 7000 PLN; save a couple of months voids and get 200 to 300 PLN extra rent then the payback looks a lot better.

Not sure if it’s the right decision but I have gone full circle and decided to go fully furnished, the cheaper option.

I guess the danger is we all do the same, then if you are the only one unfurnished the odds are better . . . . .

Good luck

Alan

Hi there,

My general rule of thumb is to ensure that the additional income from a furnished apartment pays back the cost of the furniture in 4 years.


regards

Oliver Watts

Oliver,

At this rate of return the decision whether to furnish or not sems pretty marginal.

I have found, from experience in the UK that if you are aiming at the middle/upper market, you should really write off furnishings over 4 years, expect them to last longer than thay and you risk impacting upon the units potential rental value.

From your experience is writting off over 4yrs a sensible basis for cashflow planning for the CEE units purchased through PS.

NB For my identical Pelikan units, I have gone for one furnished and one unfurnished, so I have the makings of a useful experiment.

I am slightly concerned that the CEE market may prove to be even fussier than the UK. A friend who has invested in Bratislava and is currently experiencing problems reletting (after an initial 15 month let) has been advised that he needs to replace his furnishings and TV, despite them only being 18 months old.

Regards

Alan

Yes, the same error is sometimes made in the UK by some BTL investors. We all need to remember it's not just the cost of buying furnishings in the first place, but the knock-on ongoing cost of repairs, replacements, insurance (higher premiums) and the time taken to draft, check and inspect the inventory (by landlord, managing agent or inventory clerk) - all added costs. Whether to furnish or not depends largely on the location, type of property and target tenant group. For example, generally speaking, there are more tenants looking for fully furnished properties within inner city locations than elsewhere; and in rural areas with a larger property, people tend to want unfurnished, so they can create their own home with familiar things inside it. It's a tricky judgement and needs careful research - or alternatively, test the market by offering unfurnished and see how it goes.

One other point worth bearing in mind, more damage tends to occur to properties when large items (wardrobes, fridges, washing machines, etc) are not supplied. Tenants move in and out and cause all kinds of chaos ... I can't tell you how lax tenants tend to be when connecting and disconnecting water pipes to a washing-machine, but let's just say I have had to make a large volume of insurance claims on behalf of landlord clients over the years.

Tony Booth