Should I furnish my basement apartment or rent it unfurnished?

The decision between furnished and unfurnished largely depends on your target tenant market and investment goals - furnished typically commands 15-30% higher rent but requires more upfront investment and ongoing maintenance.

In Ottawa's rental market, both options have distinct advantages. Furnished basement apartments appeal to students (given Ottawa's large university population), temporary workers, newcomers to Canada, and professionals on short-term assignments. These tenants are often willing to pay premium rent - typically $200-500 more per month - for the convenience of move-in-ready accommodation. However, you'll need to invest $8,000-15,000 upfront in quality furniture, appliances, and household items, plus budget for replacement and repairs due to higher wear and tear.

Unfurnished rentals attract long-term tenants who view the space as their home rather than temporary accommodation. These tenants typically stay longer (reducing turnover costs), take better care of the property, and create more stable cash flow. Your initial investment is minimal - just ensuring the space has proper flooring, paint, and basic fixtures. Most Ottawa basement apartments rent unfurnished, so you'll have a larger pool of potential tenants.

Ottawa-specific considerations include the strong student market near Carleton University and University of Ottawa, where furnished units are particularly popular from September to April. However, Ottawa's government worker population often prefers unfurnished long-term rentals. The city's rental market regulations under Ontario's Residential Tenancies Act apply equally to both options, but furnished rentals may face more frequent tenant turnover, meaning more frequent rent increases are possible between tenancies.

Professional guidance: Consider your basement apartment's location, size, and target market. A one-bedroom near universities might work well furnished, while a larger two-bedroom family-oriented unit typically performs better unfurnished. Factor in your time availability - furnished rentals require more hands-on management for maintenance and replacement of items.

Next steps: Research comparable rentals in your Ottawa neighborhood on platforms like Kijiji and Facebook Marketplace to see what's working locally. Calculate the break-even point on furniture investment versus rental premium. If you're still planning your basement renovation, Ottawa Basements can help design the space to maximize appeal for either rental strategy during your renovation planning phase.