When renting out a property, one of the most common questions we are often asked by landlords is whether they should let their property furnished or unfurnished. Both options have their benefits, and the best choice often depends on the landlord's specific circumstances, potential tenant profile, property type and location.
Many of the apartments that we let on behalf of landlords are furnished due to their common tenant profile, as apartments are rented by young professionals who are looking for a modern home and tend to not own furniture. However, houses or larger homes, tend to be rented by families who prefer to put their own stamp on the property and as they have accumulated their own furniture.
As this is based on tenant profiles, it’s important to seek advice from an experienced local letting agent before making a decision, as tenant types can vary by location.
What are the differences between unfurnished and furnished properties?
With an unfurnished property, tenants will need to supply their own furniture, providing them with the freedom to personalise the space to their liking. Landlords include appliances such as a cooker, fridge, freezer and washing machine, and often include curtains or blinds throughout the property.
A furnished property comes equipped with all the necessary furniture and appliances a tenant might need to live comfortably. Typically, this includes items in addition to the above such as beds, sofas, dining table and chairs and wardrobes throughout the property. The exact items included can vary, but the key idea is that a tenant can move in with just their personal belongings and start living immediately.
If a property is let furnished, a landlord must ensure the furniture supplied meets legal safety standards, including fire safety regulations, where all fabric furniture such as sofas, have labels proving that they meet this standard. If a property is advertised as fully furnished, tenants often expect to have cooking utensils, crockery and a TV provided too.
The benefits of letting a furnished property
Letting a furnished property can offer several advantages for landlords. Firstly, it can be more attractive to potential tenants who are looking for convenience or who are in a transitional phase of their life and do not want the expense of furnishing their home, such as young professionals. Furnished properties can also often generate higher rents, providing landlords with potentially higher returns on their investment. Additionally, the cost of replacement furniture can sometimes be written off as a tax-deductible expense, providing financial incentives. Once the tenancy has ended, the furniture is still owned by the landlord so this could be sold or used in a future tenancy. A property may also be let faster than an unfurnished property, depending on the location, tenant profile and property type.
The benefits of letting an unfurnished property
Unfurnished properties also come with their own set of benefits. They are often easier to manage as landlords do not need to worry about maintaining, repairing, or replacing furniture. This can result in cost savings both initially and over time. Unfurnished properties can also appeal to a different tenant profile, such as families or long-term tenants who already have their furniture and prefer to make the space their own. Unfurnished properties can also often have lower insurance premiums as there is less content to cover.
Understanding the 'let agreed' process can help inform your decision between offering a furnished or unfurnished property; find out more about what let agreed means in our detailed guide.
