Whether you’re new to the rental market, or looking for ways to attract more tenants
to your buy-to-let property, opting for furnished or unfurnished is a key consideration for all landlords. As every rental home is different, there is no right or wrong answer, and the decision will often come down to the type of property, its location, and your overall plans for your investment.
To help you decide, here’s an overview of the pros and cons of both options…
The pros of unfurnished properties
While furnished properties are popular on today’s market, unfurnished homes are equally sought-after for a multitude of reasons:
- A fundamental upside of going unfurnished is that your tenants are less likely to view the home as a short-term solution, but rather a long-term commitment. Moving furniture in and out of a property is difficult, time-consuming, and often costly; therefore unfurnished properties attract serious and long-term tenants who are willing to put in the work to make the property a comfortable home, and settle down for the long run.
- Many experienced tenants will prefer unfurnished properties as they may already have their own collection of furniture to bring to their new home. Others may want a blank canvas to style as they please, and they can also start collecting furniture ready for when they buy a house in the future.
- With none of your own furnishings in the property, you won’t have the hassle of updating or replacing items between tenancies, and fewer items to damage means lower chances of disputes. Plus, inventories will be considerably easier, allowing smooth move-in and move-out processes.
- Tenants will be responsible for repairing and replacing their own furniture, which allows less maintenance for the landlord and more responsibility for the tenant to treat the home as if it were their own.
The cons of unfurnished properties
While this option is suitable for many landlords, there are a few things to consider about not furnishing your property, some of which include:
- You may not achieve the same yields as furnished properties due to the fact that landlords who offer furnishings are renting out their appliances and furniture rather than just the property.
- By not offering furniture included, you won’t be able to attract certain tenants
with specific requirements such as students and young professionals who move around often due to work and school.
The pros of furnished properties
Particularly if your property is located in the city, there are a number of reasons to include furniture in your rental listing…
- As furnished properties
provide tenants with all the fundamentals they’ll need, you can ask for more rent than if the property were unfurnished. This can be especially beneficial if you’re using your rental income to pay off the mortgage. - If you’re offering furnished or part-furnished, you’re probably targeting a certain demographic of renters, such as students, young professionals and short-term renters who look for convenience. Because of this, void periods will likely be low due to tenants being able to move in and out quickly.
- You will be able to decorate your own property to a great standard, and therefore won’t have to worry about your tenants bringing in any personal furniture that others may find off-putting during viewings in between tenancies.
The cons of furnished properties
- While furnished properties are likely to draw in a steady flow of tenants, the lack of personal furniture items might make it easier for some to move on, possibly leading to a higher turnover of tenants.
- Opting for a furnished property also means that you will need to cover the initial cost of the items you’re including, which can be expensive so it might help to stick to a budget and search for second-hand furniture.
- Another thing to consider is that furniture wear and tear is the
landlord’s responsibility in furnished properties, so you may need to keep on top of replacing and updating the furniture between tenancies. Having a landlord insurance policy in place can cover the cost depending on circumstances, or you could recommend tenant liability insurance to your tenants to protect themselves against accidental damage. While most tenants will treat the home responsibly, furniture does open up more possibility for deposit disputes and having to foot the bill for accidental damages.
Other points to consider
- Contents included in a property will of course need to be fire safe and comply with regulations. If you’re using a letting agent, they will be able to instruct you on how to fulfil fire safety standards.
- A portable appliance test (PAT) must also be carried out, which is designed to ensure electrical goods and appliances are working correctly. All furniture and fittings should also be at the correct levels of fire resistance and labelled with fire-safe credentials.
- An additional option is to offer the property as part-furnished, which could mean including some of the essential items such as beds and white goods, whilst leaving out smaller furnishings for the tenants to fill in.
- Insurance is not a legal requirement. However, it’s good to have a safety net in case things don’t go to plan. Paying for damaged items can become costly, and there’s no telling how many breakages could occur over a short period of time. By taking out a landlord insurance policy, you can let out your property with peace of mind.
- Deciding whether to furnish your property will essentially depend on what type of tenant you wish to attract, and how you wish to manage your investment. If you’re looking for long-term tenants with low void periods, unfurnished might be the way to go. On the other hand, if you wish for flexibility and a continuous flow of tenancies, furnishing your property is a great way to achieve this.
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