Are you in the midst of deciding whether you should let your property furnished or unfurnished? Many factors come into play when making the decision, like the location, target market, and your return-on-investment goals.
If you’re on the fence about letting a property furnished or unfurnished, here’s an overview of the pros and cons to help you decide.
What Does Furnished Include?
As a minimum, all properties let in the UK need to include various amenities, like white goods, kitchen and bathroom fixtures, flooring, and curtains or blinds.
While there isn’t a legal definition of what a furnished property includes, it needs to be considered ‘fit to be lived in’ from the day the letting begins. This usually means it has:
- Beds: Enough for each bedroom
- Wardrobes: Appropriate for the number of bedrooms and people
- Chest of drawers: One or two sets per bedroom
- Sofas: Ideally to seat the number of people living at the property
- Dining room table and chairs: Preferably with enough chairs to seat the number of people living at the property
- Tableware: Enough to cater to the number of people living at the property
What are the Benefits of Letting a Property Furnished?
Choosing to let a property furnished ultimately depends on the target market, the local area and your desired rent price. By letting a property furnished, you can:
- Get a better or higher rent price
- Make your property more attractive
- Attract short-term tenants
Are there Downsides to Letting a Property Furnished?
Despite the benefits, there are some downsides to letting your property furnished, including:
- Size of market: A furnished property doesn’t always attract long-term tenants, so you may appeal to a smaller market seeking short-term lets.
- Maintenance: It adds maintenance, like handling repair and replacement work.
- Costs: You’ll need to pay for the furniture, plus repair and disposal costs.
What Does Unfurnished Include?
Unlike furnished properties, there is a legal definition of what an unfurnished property includes. They must have a minimum of:
- White goods, including a cooker, fridge, freezer and washing machine
- Kitchen and bathroom fixtures
- Flooring or carpets
- Curtains or blinds
What are the Benefits of Letting a Property Unfurnished?
Even though furnished properties are usually more desirable, there are some benefits to letting a property unfurnished, including:
- Less maintenance: Furnished properties come with a requirement to maintain the furnishings. With an unfurnished property, you won’t have this responsibility.
- Attract long-term tenants: Long-term tenants often bring their own furniture to a rental, so an unfurnished property could be more desirable to this market.
- Cheaper: Since you won’t have to pay for furniture, your outlay and running costs could be cheaper.
Are there Downsides to Letting a Property Unfurnished?
Naturally, unfurnished properties attract a different clientele. Letting an unfurnished property can mean you need to charge a lower rent price. Plus, you may not be able to compete with other nearby rentals if you’re not providing what people want. The best thing to do is research what works well for your property type in the local area before you decide.
Landlords: Need Advice?
Deciding whether to let your property furnished or unfurnished depends on many things, particularly related to the market in your area.
For personalised advice about letting properties, our friendly team at Perry Bishop are here to help. Give us a call today.