"A furnished flat rents for double a normal one." That line brings a lot of clients to the idea — and it is not wrong, it is just half the story. The higher rent gets sold in annual costs: furniture that wears out, a pricier short let, calls, marketing, and sometimes finder's fees.
Here is the calculation on the table: what the real yield gap is, which costs get deducted, and when the idea is worth doing — and when a plain let is calmer. All figures are illustrative estimates that shift with the district, the size and the season — take the result as a range, not a fixed number.
1) The yield gap: what's on paper vs what's real
If a standard flat rents for EGP 12,000 a month, the same flat furnished might fetch 16,000 – 18,000 in areas of demand (approximate). So the paper difference is 4 – 6 thousand a month = 48 – 72 thousand a year. Nice — but costs come off that.
The furnished tenant wears the unit out faster. Three things eat into the gap: (1) voids — two flats can sit empty two months in a weak season; (2) refurbishment — furniture needs repairs; (3) management — calls, cleaning, marketing almost continuously. Calculate from the net, not the gross.
2) The annual cost table (model)
| Item | Estimated annual cost | Note |
|---|---|---|
| Furniture refresh and scratch repairs | 5% – 10% of furniture value | Rises roughly every two years |
| Void periods (empty months) | 1 – 2 months a year | Higher on the coast and in weak seasons |
| Marketing, ads and photos | 1% – 2% of annual rent | Lower if you do it yourself |
| Management, cleaning and turnover | 3% – 6% of annual rent | Or an agency's commission |
| Utilities and quick repairs | By consumption | Usually passed to the tenant |
| Financing instalments, if any | Fixed | See comparing bank financing |
Add the "running" lines alone (without voids) and they typically consume more than half the gap above a standard rent. Voids flip the calculation — especially in areas dependent on one strong season. Calculate over a full year with two seasons, not on the month that pays the highest price.
If you are not ready to treat the property as a near-daily job, a furnished let will be a headache, not a return. A furnished flat is an investment — but an "operational" one before it is a financial one.
3) A model calculation on concrete numbers
A 90 m² flat in an area of demand (all figures approximate):
- Standard rent: EGP 13,000 a month = 156,000 a year.
- Furnished rent: EGP 18,000 a month = 216,000 — a paper difference of 60,000.
- Annual furnished running costs (refurbishment, voids, marketing, management): 30 – 40 thousand.
- The net difference: only 20 – 30 thousand a year.
The gap exists — but not at the size people quote. And with a fit-out cost of roughly 150 – 250 thousand, recovering it out of the net gap could take 6 – 10 years (very simplified). The project pays if run with organisation, and evaporates if run on feel with no expense book.
4) When it works — and when to walk away
It tends to work in:
- Tourist areas: the North Coast, Ain Sokhna, Alamein — seasonal demand that pays for comfort.
- University areas: New Cairo, Sheikh Zayed, Saft — students and families preferring short months.
- City centres and transport hubs: short stays for work or treatment.
- You live nearby: you can supervise, clean and market yourself without an agent's cut.
Furnished lets earn most when the tenant stays 3 – 6 months — once they approach a year, they compare your price with a standard flat and push you down. Your real product is the medium stay.
Drop the idea when: you live far and the area is purely seasonal; the district is saturated; your budget cannot cover a fit-out without loans; or you already have a good standard tenant. If you will not carry two supervision rounds a month plus an expense book, stay standard. See renting vs buying and portfolio allocation.
5) Practical steps
- Buy practical furniture, not expensive furniture: a model 30% cheaper shows fewer scratches too.
- Fix one maintenance month a year: scheduled repairs instead of year-round emergencies.
- Record every expense: without an expense book you will never know your real return.
- Agree a longer term: 6 – 12 months is calmer than month to month.
- Photograph the unit well once: good photos cut empty days — money straight to you.
- Run a small trial first: half a year before converting your whole flat.
- Build two demand channels: listing platforms plus local relationships (clinics, doctors, companies).
- Always calculate net yield: advertised rent − voids − refurbishment − marketing — that is the number for your portfolio sheet.
And open an operations ledger from month one — expenses, maintenance, voids, rent — even a simple one. After a year it gives you a genuine net figure, the only number that lets you decide whether to continue or close the experiment.
Over 12 years in the Egyptian and Gulf real-estate markets, specializing in ROI analysis and investment portfolio management.