Whether it’s better to let a furnished or an unfurnished property depends on a variety of factors, such as location and the types of tenants the landlord hopes to attract.
If you’re trying to decide which is the better option for you, this article runs through the pros and cons of letting furnished vs unfurnished as well as the main differences between the two.
Letting a Furnished Property
There’s no legal definition of what a furnished property should contain, so this tends to vary slightly from property to property. However, the furniture supplied in every furnished rental property must comply with the relevant fire safety regulations.
It’s generally accepted that the furniture present when the tenants first view the property and what’s there when they enter the property is what will be provided for the duration of the tenancy – unless otherwise agreed.
If there is anything extra that the landlord promises to include or additional work they have agreed to carry out, these agreements must be adhered to as they form the basis of the contract. Failure to do so could lead to recission of the agreement resulting from misrepresentation.
What is Included in a Furnished Property?
Furnished properties tend to come with enough furniture for a tenant to move into straight away, without having to go to a furniture shop first.
As a general rule, furnished properties usually include:
- A bed, wardrobe and chest of drawers in each bedroom
- A sofa big enough to accommodate the number of tenants in the property
- At least one TV
- Appliances such as a kettle, microwave, oven, fridge and freezer
- Furniture like bookcases, coffee tables and floor lamps
Some furnished properties will also include additional items like cutlery, crockery and a vacuum cleaner.
Pros of Letting a Furnished Property
Choosing to let a furnished property over an unfurnished one comes with several benefits, one of which includes being able to charge tenants a higher price, research shows renting a two-bedroom furnished flat can cost up to 21% more than an unfurnished property.
Other key benefits include:
- It saves tenants money as they do not need to buy their own furniture before moving in
- Depending on tenant demands within the local area, a furnished property may let faster than an unfurnished one
- Furnished properties tend to attract young professionals, students and those on placements as they are quick and easy to move into for short periods of time
- The furnishing included can be reused when the tenancy ends
- A percentage of the disposal and replacement cost for old furnishings will be tax deductible
Cons of Letting a Furnished Property
Whilst there are many benefits to letting a furnished property, this option is not without its drawbacks.
We have listed some of the main cons associated with unfurnished lettings:
- Whilst furnished rentals tend to attract a larger number of tenants, their lack of personal possessions and furniture makes it much easier for them to move on – so it’s likely that you’ll see a higher turnover of tenants
- Fully furnishing a property can be costly, even if you opt for second hand or low budget items
- Furniture will have to be replaced periodically due to wear and tear, and whilst this is tax deductible in part, it can become expensive
- If a tenant wants an unfurnished property but yours is already furnished, you might have to pay to store the furniture elsewhere
- You may need to pay for insurance to cover any accidental damage, or encourage your tenants to do so
Letting an Unfurnished Property
Unfurnished properties are usually just an empty space for tenants to furnish entirely themselves. They typically attract families or those who already have furniture and want to put their own stamp on their home.
What is Included in an Unfurnished Property?
An unfurnished property will not have any furniture in it, however, homes with features like built-in wardrobes will still be considered unfurnished.
Pros of Letting an Unfurnished Property
Letting an unfurnished property comes with many benefits for landlords, here are some of the main ones:
- You don’t have to spend money on new furniture
- You are not responsible for insuring or replacing any damaged or worn-out furniture
- Tenants who already have their own furniture won’t have to pay to store it elsewhere
- Typically, tenants interested in unfurnished properties will be looking for a longer, more stable tenancy
- If you decide to sell the property, you won’t have to store or sell the furniture inside
Cons of Letting an Unfurnished Property
Some of the cons associated with letting an unfurnished property, include:
- Landlords tend to charge lower rent for unfurnished properties, in comparison to fully furnished ones
- Furnishing an entire property can be expensive for first-time renters so this is option unlikely to appeal to this section of the market
Furnished or Unfurnished: Which is Best?
As we’ve discussed throughout this article, the decision to let a furnished or an unfurnished property depends entirely on the individual circumstances surrounding the property owner and property, as well as the kind of tenants the property owner hopes to attract.
Either way, a property inventory noting the condition of the walls, floors, windows, and doors at a minimum is required by law, to protect both the tenant and the landlord in the event of a dispute.
Enfield Property Inventory Services
Pinpoint Homes offers professional property inventory management services across the Enfield area and anywhere inside the M25 – subject to availability. We provide you with highly detailed reports and accompanying photographs, so that you don’t have to worry about anything.