Furnished Long Term Accommodation on the Rise in Shepparton
Sheppartons’s population is booming with more than 50 thousand and more people expected to move to the town according to a recently released government report. This opens up a whole new world of opportunities for long term stay and accommodation. Will they choose the conventional route of renting unfurnished 12-month apartment tenancies, or will they choose the furnished rental model?
What are Furnished Long Term Accommodation Properties?
Furnished long term accommodation properties in Shepparton will generally have more than just furniture. It will also include rugs, scatter cushions for beds and couches, linens, artwork for the walls, centrepieces, mirrors, cutlery, dining sets, cookware, stemware, knife block, bookshelf and other accessories. Appliances should include a standard refrigerator, stove, dishwasher, washing machine, dryer and air conditioner. A barbeque and patio furniture can be nice amenities as well. For entertainment, including an LCD TV, DVD player, Foxtel cable and stereo.
Considering the Target Market
Not all markets are equally amenable to the furnished rental model. Families, older tenants and those who are fairly established likely have their own belongings and prefer to rent an unfurnished property. However, furnished properties are hot commodities for the corporate market, young urbanites, families on holiday, students and those who are new to the city. They appreciate the convenience of a fully furnished unit that is completely outfitted with all the comforts of home that is ready to go with no effort on their part, and they are prepared to pay top dollar for that convenience.
Greater Shepparton boasts a diversity of cultural, outdoor and sporting activities seldom found anywhere else.
Located only two hours north of Melbourne, the area features magnificent food and wine, glorious weather and all the attractions and activities you could imagine in a regional city.
A multi-storey detached home might be tempting to a large family but is far less likely to appeal to a professional who is travelling on contract. A small CBD unit can be convenient to business travellers while a beachfront condo may be far more attractive to travellers on holiday. The new apartment towers currently being built are likely to attract corporate travellers, students and young urbanites looking for luxury accommodations, including furnished accommodations.
Shepparton is a city located on the floodplain of the Goulburn River in northern Victoria, Australia, approximately 181 kilometres (112 mi) north-northeast of Melbourne. At June 2016, the estimated urban population of Shepparton, including Mooroopna, was 50,198.
It began as a sheep station and river crossing in the mid-19th century, before undergoing a major transformation as a railway town. Today it is an agricultural and manufacturing centre, and the centre of the Goulburn Valley irrigation system, one of the largest centres of irrigation in Australia. It is also a major regional service city and the seat of local government and civic administration for the City of Greater Shepparton, which includes the surrounding towns of Tatura, Merrigum, Mooroopna, Murchison, Dookie, Toolamba and Grahamvale.
Weighing the Pros and Cons of Long Term Accommodation
One of the biggest pros of renting a fully furnished Long Term Accommodation property in Shepparton property is financial. Rents can be 50 to 100 percent higher than the rent of unfurnished apartments, and property owners can have access to more lucrative markets, including corporate and tourism markets. This can, in turn, lead to a higher-quality tenant. Business and corporate travellers often prefer to avoid spending months in a cramped hotel room and are willing to pay a premium for the luxury of a furnished property.
Furnished properties also tend to have a broad appeal, drawing tenants from local universities, tourism bureaus and the competitive short lets markets. Shorter term leases allow for more flexibility in pricing, and owners can adjust the rents to keep up with the market. These short-term leases also make it easy for property owners to regularly inspect their properties and make any necessary repairs or updates.
Finally, furnished properties offer unique tax benefits. Furniture and other property can often be written off as a depreciating asset. Lower priced items can typically be written off fairly quickly while the most expensive items are written off over their estimated lifespan. Consulting a tax advisor can ensure property owners are getting the most for their money within the parameters of the tax laws.
Although the pros of renting a property furnished are extensive, the cons should be considered before any property investor makes a final decision. When a property is furnished, there can be damage not just to the property but also to the furnishings, including the furniture, the appliances, the electronics and the artwork. The cost of replacing these items can be high even with insurance. Deposits might be higher, which can be off-putting for some tenants. Additionally, property owners must use careful planning and staging when furnishing their properties to ensure their properties are tastefully and attractively furnished rather than crowded and cluttered.
Making an Educated Choice
Many property investors are not aware of the many options available to them. The unfurnished model is so common that they automatically choose it, but it might not be in their best financial interests. In fact, the furnished property model is becoming increasingly popular as renters seek convenience and ease-of-movement and are willing to pay extra for it. By comparing all available options, investors can find the one that best fits their needs. A property manager can be an invaluable ally who can help property investors get the most out of their investments.