In recent years, we’ve noticed a growing trend: some homeowners are leaving Canada, but not permanently. Instead of selling, they choose to rent out their homes.
These properties are often already furnished, which naturally leads to a few key questions we hear all the time:
Can I charge more rent? If so, how much higher than market value? And perhaps most importantly, is it actually easier or harder to find tenants for a furnished home?
Charging Higher Rent: Yes, But With Limits
Furnished homes can typically command a higher rent, but the premium needs to be realistic. In most cases, landlords can expect a moderate increase depending on the quality and completeness of the furnishings, as well as the location and target tenant group.
That said, pricing too aggressively is one of the most common mistakes. A higher asking rent may look good on paper, but if it leads to longer vacancy, the overall return often ends up lower. The goal is not to achieve the highest possible rent, but to find the right balance between price and demand.
The Reality: Furnished Homes Can Be Harder to Rent
While many assume furnished properties rent faster, our experience in the market suggests otherwise. In many cases, furnished homes are actually more difficult to lease.
The main reason is simple: the tenant pool becomes more limited. Furnished units tend to appeal to a specific group, such as students, newcomers, or professionals relocating for short-term stays. At the same time, a large portion of renters already own furniture or prefer to create their own living space, which makes them less interested in furnished options.
Why Demand Becomes More Limited
Beyond the narrower audience, the higher rent associated with furnished homes also reduces overall demand. Even tenants who might appreciate the convenience often compare prices and choose a more affordable unfurnished option.
Location also plays a significant role. Furnished rentals tend to perform better in urban cores or areas with high turnover, such as near universities or business districts. In more suburban or family-oriented neighborhoods, however, unfurnished homes are generally more in line with what tenants are looking for.
Important Note for Ontario Landlords
For those renting in Ontario, it’s important to understand that you cannot charge additional deposits for furniture. Only last month’s rent is permitted by law.
To protect your property, it’s best to document everything clearly—prepare a detailed inventory, take photos before move-in, and include clear terms in the lease agreement regarding responsibility for damages.
Key takeaways
Furnished rentals don’t necessarily increase demand. They change the type of demand. While they may allow for a higher rent, they also require more precise pricing and targeting.
From our experience, unfurnished properties are generally easier to rent and attract a broader range of tenants, while furnished homes can work well when positioned correctly for a specific audience.
Need Advice?
Every property is different, and the right strategy depends on your goals and location. If you’re unsure how to price or position your rental, we’re here to help.
