When it comes to renting out a property, there are always some big decisions to be made.
Whether you have bought a new property with the aim of letting it out, renovated a home and are now ready to reap the rewards, or simply you are moving and would like to make some money from your old property, there is always the question of what to do with your things.
Sofas, cupboards, tables and more can all be left for the new tenant to enjoy, or they can be removed before someone new moves in.
Choosing whether to sell your flat furnished or unfurnished is a tricky choice.
Both come with advantages and disadvantages, and throughout this blog, we’ll analyse both and help you make a decision on your best option.
Let’s take a look.
What Should a Landlord Provide in an Unfurnished Property?
When some people imagine an unfurnished property, they often imagine a bare home.
This isn’t the case though.
Unfurnished doesn’t mean empty, there are still many things that will (and in most cases legally have to) be included.
Things like:
- White goods – Now this doesn’t mean that a landlord will provide a kitchen fully equipped with dish washers and so on, but vital things such as an oven, hob and sink are included with an unfurnished property.
- Alarms – by law, every house that is being rented out should have a smoke alarm and carbon monoxide alarm. Ask yourself this, would you really want to rent off a landlord who didn’t provide these?
- Well–functioning essentials – Things such as windows, doors and the garden fence should be up-to-scratch. Firstly, if there are issues with locking or closing these, it is a big security issue. Secondly, having faulty windows and doors can lead to a very cold house and huge energy bills when it comes to winter.
- Bathroom Appliances – Like the kitchen, all unfurnished apartments will come with a bathroom equipped with a toilet, basin, and a shower, bath, or both.
What it boils down to, is that in an unfurnished flat you get the essentials needed to live, but you very rarely get any extra.
This can be good for tenants, and bad, and we will look into this in more detail later in the blog.
But first, let’s look at furnished properties.
What Does a Furnished Property Include?
When most people look around a property, whether to buy or to rent, they envisage themselves living here.
Cooking in the kitchen, relaxing in the living room, or soaking up the sun in the garden, what you are selling is more than just a building, it’s a lifestyle.
This is why furnished properties can be much more attractive to potential tenants.
A furnished property includes:
- Somewhere to sleep – If you have decided to furnish your property, you will need to provide a bed for the tenant to sleep in as part of the rental deal.
- Living room furniture – Another essential in a furnished property is a sofa. Alongside a bed, these are two things that are needed in a property, and that would be expected to be seen if the home is advertised as furnished.
- Extra appliances – while an unfurnished property will apply some appliances, a furnished one will provide more. The fridge and freezer are essential, rather than an added bonus in a furnished property, as well as other appliances such as a washing machine.
- Curtains or blinds – Every home needs some form of cover on its windows. To keep unwanted eyes and early morning sunshine out curtains are paramount to a comfortable home. Every furnished flat should provide some form of curtain or blind on the windows.
So, now you know what each property type contains, which one should you choose for renting out your home?
Letting a Furnished Property: 3 pros and cons
Pros
May find a tenant quicker
A furnished property is ideal for attracting a tenant who needs something quickly that is move-in ready.
It has everything they need, with all of the furnishing and appliances already installed, which makes a speedy agreement possible.
Also, when it comes to moving in, there are no logistics involved in finding a removal company and lugging large furniture into the property.
All is there, and the process of finding a tenant and getting them in and paying rent can be done in a flash.
Can ask for more money
If you are offering a place to live that is already filled with furniture, then you can expect your tenant to pay a higher price than they normally would.
Imagine if they had to buy a bed, a sofa, and a washing machine. The prices of all of these things soon add up, so by offering these as standard, you are saving them a lot of money which should be reflected in the rental charge.
In fact, a recent study found on average, a furnished flat rents for %21 more than an unfurnished, which can be a huge amount of money in the long run.
You don’t have to move your things or put them in storage
It can be awkward if you’re moving out of a property that you would like to rent.
All of your belongings are in there.
If you have a sofa or a wardrobe that you don’t want to keep, this could mean getting rid of it, or placing it in storage which could be costly.
Instead of this, if you can use your furnishings in the flat, then you save yourself the hassle, and cost, of removing them.
On top of this, you know your belongings are being put to good use and are not buried deep in your garage doing nothing but gathering dust.
Cons
Your furniture may get damaged
Speaking of your belongings, one of the disadvantages of leaving them in an apartment is that they may get damaged.
Wear and tear is unavoidable. Over time rips, spills and stains happen, and when you are letting out a furnished property, it’s the furniture that you own that is getting damaged.
This can mean by the time the tenant leaves, the furniture may be unusable for the next tenant, and this could cost you money.
It costs money in the first place to buy furniture
On the topic of money, it isn’t cheap to furnish a flat. The average price of a double mattress is around £300 and a well-built 2-seater sofa will probably set you back above £750.
Add to this the rest of your furnishings, and this is a big outlay before you even start making money from a tenant.
If you can afford this, then great, but if you have just moved and are looking to rent, you may be short of money and this can be a very unwanted extra cost.
You are responsible for the furnishings
As the furnishings in the property are yours, this means you are responsible for them.
If the washing machine leaks all over the floor, ruining the flooring and the washing machine, this is on you as the landlord, and therefore you will have to fix the problem, as well as paying for any repairs.
Things break, and if them things are owned by you, it’s your responsibly to amend the issues, and quickly.
Letting an Unfurnished Property: Pros and Cons
Pros
May attract long-term tenants
What most landlords want is a stable and trustworthy tenant who will stay in the property for a long time.
You are more likely to find this dream tenant when renting out an unfurnished property.
This is because the opportunity to make somewhere their own, and the willingness to fork out for furniture and other appliances is always a strong indication someone is here to stay.
Unlike furnished apartments where tenants can often come and go, if someone is renting unfurnished, you’re likely to find someone who sticks around and is keen to build a strong and long-lasting relationship with you.
You’re not responsible for any damage
While you are responsible for some damage, there are many issues that you avoid when renting out an unfurnished property.
If the tenant buys a freezer that stops working after a few weeks, then it is not on you to find a solution.
Also, the wear and tear that comes with using furniture every day affects the tenant’s furniture, and not any that you own, which means you don’t have to keep buying new furnishings to make sure they’re up to scratch.
Provide your tenant with the freedom to make the place their own
Every landlord wants a happy tenant, and a great way to provide this is by allowing them the freedom to make your property their home.
By renting an unfurnished home, the tenant can design it as they please. They will also be happy in the knowledge that they own the belongings inside the home.
Not everyone likes a home to be decorated in the same way, so by offering a blank canvas, you are sure to delight many potential tenants.
Cons
The rent will be lower
If you are expecting the tenant to pay for furniture and appliances, then you can expect them to want to pay less rent.
By providing a home that is empty, you aren’t offering the same package that you do with a furnished home.
While you do have to spend less on furnishings to begin with, you may still lose out in the long run if monthly rent is cheaper.
May not get as much interest in the property
When someone views a furnished property, they often see something decorated nicely that already looks like a home.
When someone views an unfurnished property, it can be very different. An unfurnished property can feel cold and bare, and this often leads to interest dropping.
Also, many people are after somewhere they can rent quickly, and this lends itself better to a furnished property. Renting a property with no furnishings means you have to spend time decorating and buying furniture, which can also be off-putting to potential tenants.
Higher risk of damage to the property
While your furniture itself may not get damaged, your property is at higher risk of being so.
This is because when decorating a house, people are likely to cause damage.
Drilling in a shelf and going through a pipe?
Trying to squeeze a sofa through a door and chipping the frame?
Scratching the wooden floor while manoeuvring cupboards?
All of these and more are key ways a property can be damaged, and when the tenant moves out, there could be plenty of work to do to get the property rental-ready again.
The Big Question: Furnished or Unfurnished?
So, what is the best option?
Well, that is a question that depends on your current situation.
Do you want someone in quickly, or can you wait longer?
Do you have the funds to furnish a property now, or is it better financially to offer a property unfurnished, even though it might cost you more in the long run due to cheaper rent?
Do you want someone who is going to be here to stay, or a high turnover of tenants?
If you know the answer to these questions, then you probably already know the answer on whether to furnish your property or leave it unfurnished.
Final Thoughts
If you’re a landlord and have a property to rent, then why not get in touch with the team at Leysbrook?
From providing accurate valuations to marketing your property and locating the ideal tenant, our professional agents will be with you every step of the way.
Get in touch today for more information.