To furnish or not to furnish is a question that often plagues landlords in London. Buying all the furniture for a rental property can be quite a big expense, so should you go ahead, or is it the best choice to let tenants bring their furniture along? The first thing you have to understand is that no strict rules say that a landlord must furnish a property. The decision is completely up to you whether you wish to offer it with nothing but just the floorboards and walls, or furnish every corner, add appliances, kitchenware, magic lanterns, bathroom scales, tools, or any decor.
Before you get all embroiled in the pros of each category, you have to first consider who your rental target is in the market. If you wish to attract well-settled families with their children, it is best to avoid furnishing your home with furniture and high-specification gadgets. Similarly, companies and professionals who look for short-term lettings will be put off by properties unfurnished.
Nevertheless, the final decision to let your property furnished or unfurnished will make a difference to the chances of you finding a good tenant. You can always consult estate agent companies such as Fish Need Water or carry out thorough research on your own.
Here are the benefits of each to give you some idea of what is best.
The Pros of a Furnished Rental Property
- It is a plus point for tenants as they get the chance to save money since they don’t need to invest in new furniture
- When the tenancy period ends, you will still be the owner of the furniture and use it in any way suitable for you or offer it to new tenants in the future
- Your property may be taken more quickly than unfurnished ones because there are a lot more tenants who search for unfurnished properties to rent
- You can deduct some percentage of the cost of goods from the tax liability
- Helps to speed up the move as tenants will bring minimal belongings with them
- Attract younger prospective tenants who may not be able to afford furniture of their own
- A fully furnished home can give you the plus of commanding higher rent than an unfurnished home
- Enables landlords to step into the “short lets” market, where landlords can generally demand higher rents
- It can help to attract the corporate market, which typically pays more rent as the property is in a tip-top
- Tenants who bring in their own furniture may stay for a longer period. Since they have made a big investment, moving could be expensive and complex for them. Hence, you can have them for more years.
- You will not be responsible for insuring your tenant’s furniture or any other item they bring along to the property
- Wear and tear will not be your concern if the property is left unfurnished
- New tenants can live happier with their choice of furniture, fewer problems for you
- It lowers the storage and removal cost if you as the landlord decide to sell your property
- Reduces costs for you as the landlord.
The Pros of Letting an Unfurnished Property
A third option that some landlords prefer is letting their property part furnished, which is a term open to your choice. You can add everything inside except beds since most tenants can bring their own. Sometimes, you could show the property to tenants and offer them the choice to have additional furniture or leave it as it is. Most letting estate agents in dulwich favour this option as it gives the best flexibility and hence makes it easier to find good paying tenants.
Ideally, a property should have enough furniture to make it look “liveable” and functional but not over to an extent where it looks cluttered. If prospective tenants come into your property to evaluate whether they wish to rent it or not, having too much furniture of yours can make it look cramped, putting it off.
Sometimes, other landlords have a wide range of to let properties, giving them the plus point to spread their furniture in different ones. Others prefer to hire a warehouse, where they can store furniture if in case the furniture is needed in the future again.
In general, landlords across London who have larger properties tend to let them unfurnished. Commonly, tenants are likely to be families and older people who wish to move in along with their own furniture. On the other hand, smaller sized properties are furnished, which attracts younger and mobile tenants. When it comes to letting your property, the best advice is to offer your tenants whatever agreement suits you both.