Furnished or unfurnished?
Here are some pros and cons to renting out a furnished home to help you make an informed decision.
A decision a lot of landlords face when renting out their home is to decide whether their rent out furnished or unfurnished. Both have their merits and, I think the advice should be given depending on the type of property you have, the area, and what current tenants are searching for.
Pros of renting out a furnished property
1) Renting a furnished property saves tenants the hassle and expense of purchasing and moving furniture. This convenience can be a significant selling point, attracting tenants who value a hassle-free living experience. This could be particularly attractive to students, young professionals, or individuals relocating for work, they could prefer the convenience of a ready-to-move-in space.
2) Furnished properties can sometimes command higher rental prices compared to unfurnished ones. By providing furniture and appliances, you can justify charging a premium, potentially increasing your rental income.
3) Shorter vacancy periods: With a furnished property, you may experience shorter vacancy periods as tenants are more likely to choose a ready-to-move-in option. This can help minimise income loss and maximise your return on investment.
4) Flexibility for tenants: Furnished properties offer flexibility to tenants who may have temporary housing needs or prefer not to commit to long-term furniture purchases. This can make your property more appealing to those seeking short-term leases or uncertain about their future plans.
Cons of renting out a furnished property
1) Higher initial investment: Furnishing a property can be costly, especially if you opt for quality furniture and appliances. The upfront investment may require a significant financial commitment, which could impact your cash flow.
2) Increased maintenance and wear and tear: In the UK, we can only take 5 weeks deposit. Furnished properties are more prone to wear and tear, as tenants may not treat the furniture as carefully as they would their own. Where we are only able to accept a 5-week deposit, you may want to be cautious about the cost of furnishings themselves. They can also require maintenance and occasional replacements may be necessary, adding to your responsibilities and expenses.
3) Length of time: Usually, as a minimum, we would suggest supplying white goods. We’ve found tenants who buy their own furniture often stay the longest, as they’ve intentionally bought things to fit your particular space, and rehoming them wouldn’t be easy.
4) Limited personalisation for tenants: While some tenants appreciate the convenience of a furnished property, others may prefer to bring their own furniture and personalise their living space. By offering a furnished property, you limit tenants' ability to make the space their own.
5) Potential for higher insurance costs: Insuring a furnished property may be more expensive than insuring an unfurnished one. The added value of furniture and appliances increases the risk of potential damages or theft, leading to higher insurance premiums.
In either case, there are numerous benefits. It is essential when speaking with your agent that you discuss what is feasible for you and would be considered to attract your ideal tenant. If you would like to discuss this with one of the team over the phone or book an in-person meeting we would be happy to help.
