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  • Dealing with the Demons of Renting Furnished: Fact or Fiction

    Author: Anoop Majithia Date: December 1, 2014
    1. There will be constant tenant turnover.


      Fiction…I started investing in downtown Vancouver condos in 2004 and have only rented my properties furnished. Since 2004, I’d estimate that I’ve dealt with close to 400 tenants. While lease terms with furnished units are typically shorter than unfurnished units, the average range of a tenant stay is 3 to 5 months with about 20% of tenants staying in the same property for longer than 6 months.


    2. Tenants will treat your property more like a hotel room than a home.


      Sometimes…but this doesn’t normally result in significant additional costs to you. It’s probably true that most people are going to take better care of a residence which they consider to be their long term home. However, most people are decent and it’s very rare that a tenant causes damages in excess of the half month rent deposit that you are entitled to collect before a tenancy commences. The most common types of issues relate to maintaining the appearance of your suite. You’ll require more frequent carpet and suite cleanings, paint touch-ups and a handyman and plumber you can call. The Residential Tenancy Act allows you to charge your tenants with all expenses that would not be considered "normal wear and tear.”


    3. Your property’s going to require a lot more attention.


      Fact…managing a furnished unit is a lot more work. If you’re going to do it yourself, you need to make sure you understand both your, and your tenants’ rights and responsibilities as dictated by the Residential Tenancy Act. You also need to have a flexible schedule as there’s going to be more work at the beginning and end of each month when tenant turnover occurs. For most people, retaining a competent property manager is the best alternative. At Plan A Real Estate, we can get the job done for a very reasonable fee.


    4. The strata’s not going to be happy with you.


      Fiction…the vast majority of buildings in downtown Vancouver already have units which are rented furnished. The most relevant strata by-law that I have encountered is a restriction against renting units for less than one month. This is not going to be your target market.


    5. You can’t reasonably expect full occupancy anymore


      Fiction…if you’re property is in downtown Vancouver. I’ll share a fact with you that you’re not going to believe unless you’re already in the business of renting furnished properties: I have never had a single vacant month for any of my properties. If you price your property reasonably, it’s going to be fully occupied…there’s that much demand to live in downtown Vancouver. Here’s the average monthly rent I currently charge for newer units: studios: $1550, 1 bedrooms: $1800, 2 bedrooms: $2300. Parking rents for an extra $100 per month.
    Furnished Apartments Renting Short-Term Rentals

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Author : Anoop Majithia
Anoop Majithia is the Principal and Director of Plan A Real Estate Services Ltd. Anoop became a Chartered Accountant upon his graduation from the University of Toronto and subsequently completed his law degree at the University of Saskatchewan in 2001. Since that time, he has been a successful entrepreneur and avid investor in the downtown Vancouver condo real estate market. Anoop is a qualified Managing Broker with the BC Real Estate Association. Plan A Real Estate Services Ltd. is the culmination of his wealth of educational and personal experience, and his passion for real estate.