Addressing one of the many dilemma’s faced by landlords.

Many property owners contemplate whether they should provide furniture for their rental property or leave it unfurnished. The decision isn’t strictly black or white, but delving into the nuances of furnishing, along with its advantages and disadvantages, can shed light on the matter.

Furnished Properties

What does furnished mean? There is no standard definition of a furnished property and so it is imperative that the listing of the property for let should explicitly state what the landlord intends to let with the property.

What is included depends on the landlord’s preferences and can range from basic to bougie. Essential furnishings typically comprise items like beds, sofas, dining tables and chairs, coffee tables, wardrobes, and dressers. However, additional furnishings like lamps and small appliances such as microwaves or toasters may also be part of the package.

Basically, the choice of what to incorporate into a furnished property rests with each individual landlord.

Pros of furnished properties

Furnished properties hold a strong appeal for young professionals or students who haven’t accumulated their own furniture or frequently relocate for work. Such individuals can easily transition in and out of these properties without any inconvenience. This broad appeal can reduce vacancy periods.

If your property is situated in an area with high short-term demand, such as near hospitals or universities, or in a bustling city center with a transient population, you may want to consider furnishing it. Doing so can significantly enhance the appeal of your property and make it more enticing to potential tenants.

Furnished apartments also hold a greater allure because tenants can readily visualize how to utilize the available space. Additionally, this arrangement simplifies and economizes the moving process for tenants since they aren’t required to make furniture investments.

Furnished properties are often easier to market as they are ready for occupancy and allow for attractive listing photos. They also often rent more quickly, reducing the time your property remains vacant between tenants.

Furnished properties have the potential to secure higher rental rates, yet these rates must remain sensible and aligned with the prevailing market rents in the locality. If the majority of properties in the area are already furnished, the impact on rental rates may be relatively modest.

Cons of furnished properties

There exists an initial expense associated with furnishing the property that requires careful consideration.

Moreover, the potential for wear and tear as well as property damage must also be taken into account. Given that tenant deposits are typically capped at five weeks’ rent, damage to a costly piece of furniture might not be fully covered by the deposit.

As the furniture is let with the property, in the event of any damage, the landlord will be responsible for its replacement.

Furniture and soft furnishings, such as beds, sofa beds and mattresses provided by landlords are required to adhere to the Furniture & Furnishings Fire Safety Regulations. Under the regulations, furniture and soft furnishings must have a fire-resistant filling, be able to pass a match-resistant test or be fitted with a fire-resistant cover, be able to pass a cigarette resistance test and if new, be labelled with a fire safety warning.

While contents insurance isn’t a legal requirement, it’s a good idea to take it out if you’re supplying a furnished property. This is again an additional cost to be factored in.

Partly Furnished Properties

Similar to furnished properties, there isn’t a universally accepted definition for “part furnished.”

Partially furnished rental properties are those that come with some furniture and essential items but not a complete set. These properties typically include a selection of basic furnishings, which can vary from property to property, but they may not provide all the furniture required for a fully furnished living space. For example, it might include the bed frame but not the mattress, or it could entail a fully furnished bedroom while excluding sofas.

Once more, it’s the responsibility of the landlord to ensure that this distinction is clearly outlined in the property listing.

Pros of partly furnished properties

Partially furnished properties can hold appeal for transient tenants who possess minimal furniture that’s easy to transport, but lack bulkier items such as wardrobes.

With fewer furnishings, there is less potential for damage or wear and tear, which can reduce maintenance and replacement costs for landlords.

Cons of partly furnished properties

Partially furnished properties can pose challenges for potential tenants as they may need to invest in additional furniture to create a complete living space. This situation might limit the pool of prospective tenants, including those who already possess their furniture and those who have no furniture.

Unfurnished Properties

Unfurnished properties essentially indicate that the property is devoid of any furniture, presenting a blank canvas for tenants to furnish according to their preferences.

Tenants are responsible for providing their own furnishings from beds and wardrobes to sofa and dining table. In essence, the property is devoid of furniture.

Unfurnished properties often include ovens and hobs, and in some cases, they may even provide a refrigerator and other major appliances. These major appliances, collectively known as “white goods,” encompass large household equipment like washing machines, refrigerators, freezers, dishwashers, and tumble dryers, which were traditionally manufactured in white.

Unfurnished properties are attractive to those who already have their own furniture. They are particularly well-suited for family-oriented properties or properties located in urban areas.

Pros of unfurnished properties

Renting out an unfurnished property relieves the landlord of the responsibility for replacing damaged or worn furniture. What’s more, with furniture being provided by the tenant, the landlord is not responsible for insuring those items.

Unfurnished properties provide tenants with the freedom to decorate and furnish the property to their taste and needs, creating a space that truly feels like home.

They are often preferred for longer-term leases, making them suitable for families or individuals planning to stay for an extended period.

Cons of unfurnished properties

Unfurnished properties may appeal to a smaller pool of potential tenants due to the higher move in costs of purchasing or transporting furniture.

Unfurnished properties may experience longer vacancy periods as they cater to a narrower market, making it challenging to find suitable tenants quickly.

While general wear and tear on furniture may not be a concern, landlords need to consider potential damage to the property’s structure, flooring and fixtures that may be caused by tenants’ furniture.

So what’s your verdict?

Here are a few things to consider in making your decision.

Do you already have the furniture?

If you do, then it’s a no brainer and you should just let the property furnished as long as the furniture meets the regulations otherwise you may need to pay for storage.

Do you have additional funds to put towards the purchase of furniture?

If you do and your property is an area where furnished properties are the norm, it may be a good idea to put the funds towards furnishing the property.

Can you command a higher rent if it is furnished?

If the difference between letting furnished and unfurnished is significant, then it may be worth putting in the additional funds towards the purchase of furniture.

Don’t want the hassle of replacing furniture?

Well, that’s the no furniture option.

In Summary

If you do decide to furnish your rental property, there are a few things to be aware of:

1. Opt for durable furniture that is resistant to damage and has a longer lifespan. This choice will minimize the likelihood of tenants causing harm, thus reducing the need for frequent replacements.
2. Carefully evaluate your tenants and make sure your furniture aligns with their demographic. For instance, if you possess high-end glass furniture that appeals to young professionals, it’s wise to avoid tenants with children who might risk damaging the furniture. Providing costly furnishings isn’t essential, but it should be functional, well-maintained, safe and attractive to the specific tenant demographic you aim to attract.
3. Safeguard your return on investment and avoid excessive spending on furnishings. Calculate the time it will take to recover your expenses. Keep in mind that the primary goal of property investment is to generate profit and achieve a favorable return, rather than creating a showcase property. Ensure that the expected income justifies the initial expenditure.

If you’re still undecided and your property is currently without furnishings, you might consider advertising it as both furnished or unfurnished to gauge market interest. This approach allows you to assess responses (or lack thereof) from your ads before making a decision on whether to furnish it or not.

Landlords should carefully consider their target tenant demographic and prevailing local market conditions when making the choice between renting their property with or without furnishings.