Furnishing a rental home is an investment decision dressed up as a lifestyle one. At Sobha Athena and across North Bangalore, the benchmark spread is...
Furnishing a rental home is an investment decision dressed up as a lifestyle one. At Sobha Athena and across North Bangalore, the benchmark spread is clear: a semi-furnished home returns 3.5 to 4% a year of property cost, while a furnished one returns 4 to 4.5%. The question is whether the extra half a percentage point justifies the capital and the hassle.
Work it per crore. Semi-furnished, every Rs 1 crore of property cost yields Rs 3.50 to Rs 4.00 lakh a year, or about Rs 29,200 to Rs 33,300 a month. Furnished, the same crore yields Rs 4.00 to Rs 4.50 lakh, or roughly Rs 33,300 to Rs 37,500 a month. The gap is therefore around Rs 4,000 to Rs 8,000 a month per crore of value. See the amenities page for the full detail.
Against that, count the cost. Furnishing a 3 BHK of 1,682 to 1,718 sq ft to a standard that commands the upper band means beds, wardrobes, seating, dining, white goods and window treatments. That capital does not appreciate; it depreciates, and it needs replacement every few years under tenant use. Run the payback period before committing, not after.
Tenant profile decides whether the premium is achievable. In this corridor the pool is largely technology professionals working at Manyata about 4.5 km away, Karle Town Centre at 5 km and Bhartiya City at 2 km. Relocating employees and shorter-tenure tenants pay for furnishing because they arrive without possessions; settled families with their own furniture rarely do, and a fully furnished home can actually narrow your tenant pool.
Semi-furnished sits in the practical middle. Modular wardrobes, kitchen fittings, light fixtures, fans and air-conditioners cover what most tenants expect without carrying the depreciation of full furnishing. Here the kitchen already comes with a granite countertop laid out for a modular fit-out, and homes carry provision for split air-conditioners and geysers, which shortens the list considerably.
The building itself does some of the work either way. Three temperature-controlled pools, a clubhouse of roughly 60,000 sq ft, 100% DG power back-up and 24x7 security are the features a prospective tenant notices on a viewing, and they support rent regardless of what furniture stands in the living room.
One risk worth naming. Furnished lettings carry higher wear and more disputes at exit, since every item becomes a line in the deposit settlement. Semi-furnished tenancies are simpler to manage remotely, which matters if you are an investor living in another city or abroad.
Our suggestion: start semi-furnished, watch how quickly the home lets and at what rent, then decide whether furnishing is worth the capital. Ask our team for current rental comparables in the township before you spend anything.
Related reading: the Thanisandra rental yield guide.
How much more does furnishing earn?
Roughly half a percentage point of yield, equivalent to about Rs 4,000 to Rs 8,000 a month per crore of property cost.
Which tenants pay for furnishing?
Relocating professionals and shorter-tenure tenants. Settled families usually bring their own furniture.
What counts as semi-furnished?
Typically modular wardrobes, kitchen fittings, light fixtures, fans and air-conditioners, without loose furniture.
Is furnished harder to manage?
Generally yes, because every item enters the deposit settlement at exit, which matters most for remote landlords.
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