Landlords Debate: Should you Let a Furnished or Unfurnished Property?
It’s a question which plagues landlords up and down the country, should you let out your property furnished or unfurnished?
Whilst everyone is in agreement on the décor of a let property… after all, you really can’t go wrong with magnolia, there’s not quite the same consensus when it comes to furniture.
Before you get embroiled in the pros and cons of each, you must first consider who your target rental market is. If you’re aiming to attract young families with small children, it’s probably best to avoid kitting the house out with white furniture and high-spec gadgets. Likewise, professionals and companies looking for short term lets will be put off by unfurnished properties.
Although the answer to this question largely depends on your target tenant, Jones Robinson have listed the benefits of each to give you some food for thought.
The benefits of letting out an unfurnished property
- Allowing tenants to furnish the home themselves may make the property feel more like their own and could result in them renting for longer.
- Repairs and replacements to furniture and fittings are all at the tenants own cost.
- Landlords are not responsible for insuring the tenants furniture nor do they need to ensure it complies with legal regulations.
- It lowers the removal and storage cost if a landlord does ever decide to sell their property.
- Reduces the costs for the landlord.
The benefits of letting out a furnished property
- Attracts younger tenants who may not have or be able to afford their own furniture.
- Speeds up the moving in process as tenants have minimal belongings to move in.
- A furnished home can command higher rent than a similar unfurnished home.
- May attract the corporate market who typically pay higher rent so long as the property is in tip top condition.
- Enables landlords to enter the short lets market where landlords generally are able to command higher rent.
- Landlords can either use or sell furniture from their let property once the tenancy has ended.
Our lettings director, Paul Broomham weighs in on the furniture debate:
“The Furnished v’s Unfurnished question is one that I am asked a lot. There are generally two factors that I advise landlords to take into account – the first is ‘What is better for you?’ If you are going travelling for 12 months or moving to another property that is already furnished then leave your property furnished, this will cut down on removal and storage costs while the property is let. The second is ‘How long do you want to let the property for?’, if it is a short period, i.e. 6 to 12 months then a furnished property will appeal to tenants looking for a shorter term tenancy.
The market place in West Berkshire is such that there is a demand for both furnished and unfurnished accommodation but, if you do opt for furnishing a property, tenants are looking for good quality furnishings. As tempting as it may be to put a 15 year old sofa in the apartment to save a few pounds, you have to ask if a tenant would be put off by this and if it is going to help command the rental you are looking to achieve. If you are in any doubt, please contact any of the Jones Robinson team and we will be happy to advise”
Property Investment | 11/07/16 11:29AM