Furnished or unfurnished: what to choose
Furnished rental allows a 10 to 30% higher rent but generates more turnover and management costs. Unfurnished offers greater tenant stability. The choice depends on the target: furnished for expats and students, unfurnished for families.
In Belgium, the distinction between furnished and unfurnished has legal, tax and financial consequences:
| Criterion | Furnished | Unfurnished |
|---|---|---|
| Average rent | +10 to 30% | Reference |
| Average lease duration | 6 to 18 months | 3 to 9 years |
| Initial investment | 3,000 to 10,000 EUR (furniture) | None |
| Tenant turnover | High | Low |
| Typical tenant | Expatriate, student, young professional | Family, stable couple |
Concrete financial impact
For an apartment with an unfurnished rent of 800 EUR/month:
| Element | Furnished | Unfurnished |
|---|---|---|
| Monthly rent | 1,000 EUR (+25%) | 800 EUR |
| Annual rent | 12,000 EUR | 9,600 EUR |
| Furniture investment (amortised over 5 years) | -2,000 EUR/year | 0 EUR |
| Additional reletting costs | -500 EUR/year | -200 EUR/year |
| Furniture maintenance | -300 EUR/year | 0 EUR |
| Net annual income | 9,200 EUR | 9,400 EUR |
In this example, furnished rental generates slightly lower net annual income despite a 25% higher rent. The furnished advantage manifests mainly in areas with strong expatriate demand where the premium can reach 30-40% and vacancy remains low.
For which tenant profile
Furnished rental is ideal for:
- Student housing: students want turnkey solutions
- Expatriates: assignments of 6 months to 2 years, do not want to buy furniture
- Coliving: furniture is part of the offer
- Short-term rentals (Airbnb): furniture is mandatory
Unfurnished rental is preferable for:
- Families: long leases, stability, they own their furniture
- Residential areas: furnished demand is low
- Investors wanting to minimise management
The taxation of furnished rental is different: the portion of rent attributed to furniture is taxed as movable income (at 30% withholding tax). The split between real estate and movable portions must be specified in the lease. Without a split, the tax administration applies a flat rate of 40% to the furniture portion.
Regional specifics
Brussels-Capital Region
Brussels is the strongest market for furnished rental due to EU institutions and expatriates. The Ordinance of 27 July 2017 provides that the deposit can be up to 3 months for a furnished lease.
Wallonia
In Wallonia, furnished demand is lower, concentrated in university cities. The Decree of 15 March 2018 governs primary residence leases, furnished or unfurnished.
Flanders
In Flanders, furnished demand is strong in Antwerp, Ghent and Leuven (expatriates, international students). The Flemish Housing Rental Decree of 9 November 2018 provides minimum quality standards that also apply to furnished items.
Articles 7 and 17 of CIR 1992 — real estate and movable income. Furniture/property split: FPS Finance circular 2018/C/57.