As a landlord, whether you decide to rent out your investment property furnished or unfurnished is up to you. Your decision is likely to have a bearing on the sort of tenant who will take up occupancy.
So, let’s have a look at some of the pros and cons of both types of arrangement as this may help you in making a decision as to your favoured route.
Furnished – positives
- You will find that the corporate lettings market is going to prefer to focus on properties that are furnished for their executives. As corporate lets are very lucrative, this may have some bearing on your decision.
- Students almost invariably prefer to move into a property that is already furnished which, again, is a popular sector. There is no doubt that there will continue to be a ready market for student accommodation.
- It is usually possible to let out a furnished property quicker as the tenant does not need to wait to sort out a removal firm to move their own furniture from the property they are currently living in to yours. As it is likely to save the tenant having to buy furniture it is particularly appealing.
- A property looks more appealing when furnished so it is easier to sign up a new tenant.
- You can expect to achieve a higher monthly rental on a furnished property than an unfurnished one.
Furnished – negatives
- You have the capital outlay of having to buy the furniture that can amount to a significant sum.
- You are responsible for insuring the contents and for making sure that it meets standards such as fire and health and safety.
- You will have to deal with any damage to the furnishings.
Unfurnished – positives
- You will have no wear and tear issues.
- Tenants tend to stay for longer periods of time in unfurnished properties as it is more hassle and expense if they have to keep moving their furniture from one rented property to another.
- You are not responsible for insuring your tenant’s furniture.
Unfurnished – negatives
- Unfurnished properties tend to appeal to fewer people. For instance, students don’t normally like to rent a property that is not already furnished.
- You are unlikely to get as high a monthly rental.
As you can see, there are for and against both furnished and unfurnished properties.