Discover the many benefits of furnished rentals: Taxation, profitability, and more!
Whether you’re a property owner looking to rent out your property or in search of a real estate broker to manage your rental properties, this article is tailor-made for you! We’ll delve into the exciting world of furnished rentals and provide you with all the information you need.
Advantages of furnished rentals:
Furnished rentals have become extremely popular in recent years, offering property owners a myriad of unique benefits. Unlike unfurnished rentals, furnished rentals allow owners to lease their property with all the necessary amenities for a comfortable stay. This includes furniture, appliances, and much more!
In terms of taxation, furnished rentals come with numerous advantages. Expenses related to maintenance, repairs, and improvements of rented properties are tax-deductible. Moreover, rental fees for furnished rentals are generally higher, allowing for a larger income and thus reducing the taxable amount.
It’s important to note that owners of furnished rental properties must also collect GST (Goods and Services Tax) and QST (Quebec Sales Tax) on the rental income. While this adds an additional responsibility, collecting these taxes enables property owners to recover the GST and QST paid on rental-related expenses.
Apart from these tax benefits, furnished rentals offer many other advantages. They typically attract short-term tenants, such as expatriates, international students, or business travelers. This means your properties can be occupied throughout the year, reducing vacancy periods. Additionally, monthly rents for furnished rentals tend to be higher than those for unfurnished rentals, providing you with superior profitability.
Disadvantages of furnished rentals:
Of course, it’s important to consider potential drawbacks of furnished rentals. The initial investment to furnish the property may be higher, and furniture wear and tear may require more frequent repairs or replacements. Moreover, managing short-term rentals can be more intensive for property owners, or you may need the services of a real estate broker specializing in property management.
Of course, it’s important to consider potential drawbacks of furnished rentals. The initial investment to furnish the property may be higher, and furniture wear and tear may require more frequent repairs or replacements. Moreover, managing short-term rentals can be more intensive for property owners, or you may need the services of a real estate broker specializing in property management.
Why not delegate these tedious tasks and fully enjoy the benefits of furnished rentals? Turn to our expert real estate brokers in property management now. We’re here to help you maximize your rental returns and relieve you of the management hassles. Simply fill out the form below to benefit from a free consultation and discover how we can support you in this venture!
