A furnished apartment commands a higher rent than an empty one — that is where most owners start thinking about it. But the rent premium is only one side of the equation: there is also an upfront investment, faster tenant turnover and closer management. Here is what actually changes, without the gloss.
Why furnished lets command more
Furnished letting serves a specific demand: expatriates on assignment, executives in transition, researchers and interns at international organisations, people mid-renovation or mid-separation. These tenants usually arrive for a few months to two years, with no furniture and no wish to buy any. They accept a higher rent because the alternative — furnishing an empty flat for a short stay — would cost them more.
In the areas where this demand is dense (Geneva, Lausanne, Zug, Basel, Zurich, and the communes near international organisations or large employers), the gap between an empty and a furnished let commonly falls in a 20–40% range. Outside those areas the premium shrinks quickly — and furnished flats become hard to fill.
What furnished letting demands in return
- Faster turnover. Furnished leases are short by nature. Where an unfurnished tenant stays several years, a furnished tenant often stays six to twenty-four months. Each departure means an inventory check, a clean, repairs and a vacancy gap.
- Closer management. A washing machine that breaks down in a furnished let is your problem, not the tenant's. Furniture wears, stains and breaks — and arguments over fair wear and tear come up far more often.
- Capital tied up. Furnishing a three-room flat properly commonly costs CHF 12,000 to 18,000 in new, mid-to-good quality pieces — before crockery, linen and lighting, which budgets routinely forget.
- Periodic renewal. A sofa that has seen five tenants no longer shows like it did on day one. Plan to replace the heavily used pieces every three to five years.
The maths, plainly
Take a three-room flat let at CHF 2,200 a month unfurnished, and CHF 2,800 furnished — a gap of CHF 600, or CHF 7,200 a year.
| Unfurnished | Furnished, furniture bought | Furnished, furniture rented | |
|---|---|---|---|
| Annual rent | CHF 26,400 | CHF 33,600 | CHF 33,600 |
| Upfront investment | — | CHF 12,000–18,000 | None |
| Annual furniture cost | — | Depreciation + replacements | CHF 3,000–5,000 |
| Vacancy | Low | Higher | Higher |
| First-year cash flow | Neutral | Negative | Positive from the first rent |
The figures above are indicative and vary widely by commune, size and standard. What they show, though, is structural: if you buy, the rent premium spends its first two to three years repaying the furniture; if you rent the furniture, the margin is thinner but immediate, and you carry neither the capital nor the obsolescence risk.
Furnishing well: what matters to a short-stay tenant
The classic mistake is to furnish as you would furnish your own home. A tenant on an eighteen-month assignment is not after a magazine interior: they want to live properly without having to buy anything.
- Bed and mattress first. It is the one item where a tenant notices quality immediately — and the one that generates complaints.
- Storage second. Swiss flats often lack built-in wardrobes; a decent wardrobe does more for lettability than a designer sofa.
- A genuinely usable kitchen: crockery for four, pans, a minimum of appliances. That is what separates a real furnished let from a flat with furniture in it.
- Robust pieces, not fragile ones. A removable, washable cover beats pale linen, however handsome.
- No personal photographs or sentimental objects. They go missing or get broken, and they stop the tenant feeling at home.
Buy or rent the furniture?
For an owner testing furnished letting on a first property, renting the furniture removes the most uncomfortable part: the commitment. You equip the flat without spending CHF 15,000, you find out whether the rental demand is real, and if the experiment disappoints, the furniture leaves without you having to resell it at a loss on classified ads.
If it works, buying starts to make sense — and at Swaap half of the rent already paid is deducted from the price, so you don't pay twice. Our rent-or-buy calculator lets you run the numbers against your own horizon.
FAQ
Do furnished leases follow different rules in Switzerland?
Swiss tenancy law does not create a separate regime for furnished lets in the way some neighbouring countries do: the general rules of the Code of Obligations apply, including on the rental deposit and notice periods. The furniture inventory attached to the contract does, however, become a key document in any dispute. For your specific situation, take advice from a lawyer or your managing agent.
Should the furniture be insured?
Yes, and it pays to know who covers what: the tenant's household insurance covers their own belongings, not yours. Check your owner's policy, and ask the tenant for proof of third-party liability cover.
Does furnished letting work outside the main centres?
Rarely. Demand for furnished property is driven by international professional mobility; away from those areas, the rent premium does not offset the higher vacancy.
How long does it take to equip a flat?
Buying new, expect several weeks of lead time for sofas and beds. Renting, a few days — which matters when a tenant is already lined up.
Also worth reading: what it costs to furnish a flat in Switzerland and the guide to rental deposits.
Equip it without tying up capital: rental from 1 month, delivery and assembly included, collection if the experiment disappoints — and 50% of rent deducted if you decide to buy.
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