Furnished or unfurnished rental?

Furnished or unfurnished rental?

As landlords try to entice quality renters to sign lease agreements, many debate the merits of furnished or unfurnished rental properties. Deciding whether to let a property fully furnished or unfurnished is a personal decision that landlords should base not only on their circumstances but on the demand from tenants, to ensure minimal void periods.

Furnished or unfurnished rental?

Furnished rental property

A furnished property gives tenants a home away from home and allows them to move in without needing to bring furniture. As a general rule, tenants will expect the following items to be included if you advertise a property as furnished:

  • A bed, wardrobe and/or chest of drawers in the bedrooms
  • White goods in the kitchen, including a fridge, freezer, cooker, and washing machine
  • A sofa in the living room
  • Soft furnishings throughout the property, such as carpets/wooden flooring and curtains/blinds
  • A table and chairs, if there is a dining area

If you choose to rent a property furnished, you must ensure that all of the furniture meets all legal safety requirements, including fire safety regulations.

What type of tenant will a furnished property attract?

Furnishing your property will attract tenants wanting hassle-free renting. Students and young professionals who may have little or no furnishings fall into this category of tenants. Furnished apartments are also perfect for corporate tenants on short-term assignments or tenants from other countries.

The benefits of a furnished property

  • As a landlord, letting out a furnished property could result in a larger monthly rental revenue. This is because tenants will be able to justify paying a higher rent if they are not required to purchase furniture.
  • Because furnished properties are in higher demand than unfurnished properties, you may be able to rent a furnished property considerably faster.
  • If you already have furniture in the house it saves you the cost of removal and storage
  • It saves tenants money as they don’t need to buy their own furniture.

The disadvantages of a furnished property

  • For landlords, furnished rental properties can be more of a headache. This is because the furniture will have to be accounted for in the inventory. In addition, any wear and tear or damage done to the furniture will need to be replaced and paid for by the landlord.
  • Some tenants can be put off a property if the furniture is not to their taste.

Unfurnished rental property

An unfurnished rental property is usually an empty space for you to furnish entirely yourself. Therefore, an unfurnished property includes very minimal fixtures and fittings. Tenants can expect to rent a home with bathroom and kitchen fixtures, as well as flooring or carpeting. Some unfurnished properties include some white goods and major appliances, such as a fridge/ freezer, oven and washing machine. This, however, varies from one landlord to the next.

What type of tenant will an unfurnished property attract?

Unfurnished rentals appeal to tenants who wish to personalise their rental. Also, unfurnished properties appeal to couples or families that already have their own furniture.

The benefits of an unfurnished property

  • Tenants who have their own furniture may be more likely to remain in the property for longer, as they have more invested in it.
  • As a landlord, you won’t have to worry about furniture damage or having to replace a piece of furniture.
  • If you decide to sell the property, you won’t have to arrange and pay for the removal of furniture.

The disadvantages of an unfurnished property

  • You effectively make your house less desirable to a huge segment of the rental market by not furnishing it.
  • Empty properties can be undesirable to potential tenants.

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