Kenyan landlords often debate whether to rent out properties furnished or unfurnished. While furnished units can command higher rents, they also come with extra costs and maintenance. Unfurnished rentals attract long-term tenants but may yield lower monthly returns.

So, which strategy is more profitable? Let’s break it down.

💰 Rental Income Comparison
Furnished Rentals (Higher Rent, Higher Costs)
✅ Pros:

20-40% higher rent (e.g., Ksh 50,000 vs. Ksh 35,000 for a 2-bedroom)

Appeals to expats, short-term tenants, and digital nomads

Faster occupancy in business hubs (Nairobi, Mombasa)

❌ Cons:

Higher upfront costs (furniture, appliances)

More wear and tear = frequent replacements

Utility bills often included (cuts into profits)

Unfurnished Rentals (Lower Rent, Lower Hassle)
✅ Pros:

Lower maintenance costs (tenant brings own furniture)

Longer leases (families, professionals stay 2+ years)

No furniture depreciation risk

❌ Cons:

Lower monthly income (but more stable)

Slower to rent in transient areas

📊 Which Performs Better in Key Kenyan Markets?

     
💡 Tip: In Airbnb hotspots (Diani, Karen), furnished rentals earn 2-3x more than long-term leases.

⚖️ Hidden Costs to Consider
Furnished Rentals
Furniture depreciation (replacement every 3-5 years)

Higher tenant turnover (more cleaning, advertising costs)

Theft/damage risk (especially with short-term tenants)

Unfurnished Rentals
Longer vacancies between tenants

Minimal extra income (no premium for furniture)

🏆 The Winner? It Depends!
Go FURNISHED If You…
✔ Own property in tourist/expat-heavy areas
✔ Can handle frequent tenant changes
✔ Have capital for quality furniture

Go UNFURNISHED If You…
✔ Prefer low-maintenance, stable income
✔ Rent to families or long-term professionals
✔ Don’t want to manage furniture repairs

🛠️ Hybrid Strategy: The Best of Both Worlds?
Some landlords offer semi-furnished units (basic furniture, no appliances) to balance higher rent and lower costs.

Example:

Semi-furnished 2-bedroom in Thika = Ksh 45,000

Fully furnished = Ksh 55,000

Unfurnished = Ksh 35,000

📈 Maximizing Your Rental Profit
Research local demand (Airbnb vs. long-term).

Calculate ROI—will furniture pay for itself in 2-3 years?

Test the market—list furnished first, then adjust if needed.

Need Help Deciding?
Makao Spaces offers free rental strategy consultations for landlords. 📞 Contact us today!

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💬 Landlords: Which strategy works for you? Tenants: Do you prefer furnished or unfurnished? Comment below! 👇