If they're telling you there is no diff in prices btwn furnished and unfurnished, they're full of shit. Just as a point of view (YMMV), I had the option of a guarnatia and could rent an unfurnished place. However, I decided on renting a furnished apt b/c by the time I factored in what it would cost to buy all the appliances, furnishings and the bills, etc, the savings wasn't that significant. And I personally didn't want to deal with the headache of setting up all the utilities and waiting, etc.
Re: rent increases, I didn't have any the first year, i did have an increase of 10% the second year. FYI, If you sign a 2 year contract, there is usually a 20% increase the 2nd year. It's very common so don't make the mistake of thinking the price you sign is locked in for 2 years.