As a landlord, you may have asked yourself, ‘Is it better to let a property furnished or unfurnished? ’
With that in mind, we’ve compiled a guide to the pros and cons of letting out properties that are both furnished and unfurnished to help you come to an informed decision.
What is the difference between furnished and unfurnished?
Whilst we all understand the difference between the two words, you may not realise what an unfurnished property still needs to include.
Commonly people misunderstand and just assume unfurnished means a property that is completely bare.
Unfurnished properties should still include:
- Bathroom fixtures
- Carpets or other types of flooring
- Curtains or blinds
- Kitchen fixtures
- White goods such as a fridge, a freezer, a washing machine and a cooker
Furnished properties are likely to include:
- Everything associated with unfurnished properties
- Dining table and chairs
- Beds
- Wardrobes
- A sofa or armchair
- Tableware
- Chest of drawers
Of course, whilst there is a rough guide to what unfurnished properties will include, furnished ones can be left open to interpretation, and the list above is just an idea of what you might look to include in yours.
The general consensus though, is that it needs to have furniture and appliances that allow you to live comfortably from the moment you move in.
What fixtures and fittings are landlords legally required to provide?
Even if you choose to rent a property out that is unfurnished, there are certain items that, as a landlord, you are legally obliged to provide. These include:
- At least one smoke alarm on every floor
- A cooker and hob
- A sink
- A boiler
- Heating
- A working toilet
- Light fittings
- A carbon monoxide detector in any room with a fixed combustion appliance, apart from gas cookers
- Locks on all external doors
- A shower or bathroom
- Floor coverings – floorboards can be accepted if they are safe to walk on
Is it better for landlords to furnish a property or leave it unfurnished?
Whilst there is no correct answer, it really does depend on who you are hoping to rent your property to and whether their needs are met. What is important to one tenant will be different to another.
We think it is always worth talking to your letting agent to find out what renters in your local area want out of a rental property, so you can help accommodate them and get tenants in your property.
What are the benefits of furnishing a rental property?
Benefits of furnishing a rental property might include:
- Demand for living in your rental property will be higher, which can help drive the price up and allow you to cherry-pick good renters
- The furnishings can be reused for your next renters when the current tenants move out
- You could get more money each month for a property that’s furnished
- Your tenants will be thankful to not have to purchase furniture
- A percentage of the cost of replacing furniture can be tax-deductible
- You can maximise the size of your property with space-saving furniture, so it appears larger
- You’ll avoid any damage that could come from tenants moving their furniture in and out.
What are the drawbacks to furnishing a rental property?
Despite the many benefits, there are also a number of disadvantages to furnishing a property for occupants to move into that are worth considering. These can include:
- Your property being less attractive to those who already have their own furniture
- You’ll need comprehensive landlord contents insurance
- There could be disagreements with tenants over damage to the furniture
- Costs to replace or fix the current furniture
- A potential for higher turnover of tenants
What are the benefits of leaving a rental property unfurnished?
If you’re not interested in providing a rental furnished, there also benefits of leaving your property unfurnished:
- You won’t need to pay for or chase money for any damages caused to certain items
- Your initial outlay will be less than those who buy furniture for their tenants
- Many tenants will likely be happier to be surrounded by their own furniture
- Could attract tenants who are looking for somewhere more long-term than short-term
- You won’t need to clear the property when you are looking to sell
- There are fewer items that can be damaged by the tenant
- Your contents insurance will be less as there will be fewer items belonging to the landlord
What are the drawbacks to leaving a rental property unfurnished?
Along with the benefits, there are a few disadvantages to leaving a home unfurnished. These can include:
- You’re providing less, so probably won’t be able to charge as much for rent as furnished homes
- It won’t be as attractive to students or young professionals, especially if you live in a major city, which could limit your rental potential
- You risk moving damages with each new set of tenants.
What type of tenants will I attract with rental properties?
The type of tenant you have can have a huge impact on how smooth your relationship with the occupiers will be. It may be that you’re looking to rent to students as you’re hoping for a short-term renter as opposed to a family who may want a long-term stay.
When you furnish a property, generally you are more likely to attract people looking for convenient, short-term lets, such as students, overseas tenants and those who are looking to be close to work during the week, whilst leaving the home unoccupied at the weekends.
Leaving a home unfurnished is more likely to attract longer-term tenants as they’re able to decorate the property to their liking by bringing in their own furniture, thus making it feel more homely. This, in turn, could attract families, couples who are looking to settle in a new area and anyone who already owns items from a previous rental agreement.
Which is better for tenants?
Whilst we’ve explored which is better for landlords, it’s important to consider those renting too. Let’s take a look at which is better for tenants.
Benefits of renting a furnished property
Less expensive
Living in a furnished property will, of course, be less expensive, especially at the beginning of your tenancy, as there will not be a huge initial outlay on furniture.
You will also not have to worry about how to move your old furniture into your new place, nor will you have the bore of looking around countless shops staring at three-piece suites and dining tables.
They are more convenient
They are incredibly convenient to move into straight away with no fuss or stress about having to buy items in advance. If this is the first time you are renting or if you are looking for a place on a short-term basis for work then this could be the perfect option for you.
Benefits of renting an unfurnished property
They can be less expensive to rent
Whilst it may seem counterproductive given the initial outlay of buying your own furniture, it could be that you actually pay less money over a longer period of time. This is because many landlords will prefer to have long-term tenants as opposed to having to look for new ones every six months, and they will reflect this in their fees.
Rental charges might also be lower because landlords are not looking to make the money back they spent on furniture themselves.
Fewer deposits will be needed
Of course, accidents can happen, but unlike with furnished properties, if you spill a drink or food on your sofa or break an item, you will not have to worry about paying the costs to cover it with your landlord, or worry about losing a deposit.
Your home will feel more personal
Whilst you may not have bought your home, we know you still want to make it feel like it belongs to you. Having your own items and possessions will help you settle into a new environment quicker and will have your rental feeling like home in no time.
Can you part-furnish a property to let?
You can part-furnish a property to let to potential renters, but this option will require some negotiation and flexibility from both parties.
Part-furnished properties sit in between furnished and unfurnished, where the landlord will provide a certain number of items that are halfway between, with tenants being able to bring some of their own furniture.
An example of a part-furnished property could be one that contains a single bed, a sofa, wardrobes and a dining table with chairs. The tenant would then buy extra furniture to fill out the rest of the home.
The reason why some landlords may opt for this is because it makes the rental feel more homely, whilst still giving renters the chance to make it personal to them.
Do I need landlord insurance?
No matter whether your property is furnished or unfurnished, as a landlord, you will need landlord insurance, luckily Adrian Flux is on hand to help with specialist cover no matter your circumstances.
We offer competitive rates and can tailor an insurance policy to your exact needs. For our best rates, call 0800 369 8590 or book a callback at a time that works for you.
