Own an Apartment in the Czech Republic? Is It Better to Rent It Fully Furnished or Not?
Many investors who purchase properties in the Czech Republic through us ask what is better — to rent out the apartment fully furnished, partially furnished, or completely empty? In this article, we’ll clarify the advantages of each option, and at the end, we’ll share what we typically recommend to our clients.
Note that we will focus here exclusively on long-term rental apartments, as short- and mid-term rentals must be fully furnished.
Advantages of a Fully Furnished Apartment
- You can typically charge slightly higher rent than for an unfurnished apartment.
- Some tenants are only looking for furnished apartments to avoid buying furniture.
- Furnished apartments tend to be rented out more quickly.
- These apartments are usually available for immediate move-in.
Disadvantages of a Fully Furnished Apartment
- Higher wear and tear on both the apartment and furniture compared to an unfurnished unit.
- Families or tenants who already own furniture may rule out the apartment due to lack of storage space for their own items.
- It’s relatively easy for tenants to move out — just pack a suitcase and go.
- Additional upfront cost to furnish the apartment.
Advantages of an Unfurnished Apartment
- Tenants typically stay longer, since moving out involves greater effort and costs such as transportation.
- No need to purchase furniture for the apartment.
- Less wear and tear on both the furniture and the apartment.
- Landlords may have slightly better bargaining power due to the costs tenants incur when moving out.
Disadvantages of an Unfurnished Apartment
- Smaller pool of potential tenants, such as students or expats on relocation looking for move-in ready homes or those who don’t want to buy furniture.
- Rent is usually slightly lower than for furnished apartments, due to additional costs incurred by the tenant.
- It may take slightly longer to find the right tenant.
These are the main pros and cons to help you, as a landlord, decide which strategy fits your needs best. When our investors ask what we recommend and how we prefer to manage the apartment, as an experienced property management company, we usually choose the strategy of renting out unfurnished apartments — and here’s why.
Why We Recommend Renting the Apartment Unfurnished
In our opinion, based on over a decade of experience, apartments with high tenant turnover tend to remain vacant for longer periods. Add to that brokerage fees for re-renting the unit, and sometimes renovation or repainting costs — and you’re left with significant expenses. For this reason, we do our best to ensure that lease terms are as long as possible, and we therefore recommend that our clients avoid fully furnishing their apartments.
However, There Are a Few Exceptions
- If a tenant requests a single furniture item and is a high-quality tenant, we recommend purchasing it. For example, a washing machine or wardrobe usually has very low wear and tear, making the investment worthwhile.
- Apartments in student areas or tourist zones — in such locations, fully furnished apartments command significantly higher rent and value.
- Of course, if the furniture comes at no additional cost (e.g., the property was purchased furnished), we will leave it for the tenant and clarify that any damaged or unusable furniture will not be replaced.
If you’re unsure how best to manage your property, or you’re having issues renting or maintaining it, you’re welcome to contact us for advice based on our experience managing hundreds of properties across the Czech Republic and in Prague.
