Should You Let Your Rental Property as Furnished or Unfurnished? Landlord Guide

There are numerous factors for landlords and letting agents to consider when it comes to letting out a furnished or unfurnished property. You should consider the type of tenants you want to attract, how much you’ll charge for rent and your expenses. Furnished and unfurnished properties both possess unique advantages for landlords and letting agents alike.

There are no hard-and-fast rules for furnishing properties, meaning landlords can be left scratching their heads in deciding the best course of action. Resooma has put together this guide to help you decide if you should let your rental property as furnished, unfurnished or somewhere in between.

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Navigate our guide on letting furnished and unfurnished properties:

• Letting a furnished property
• Benefits of letting a furnished property
• How to cheaply furnished your property
• Letting an unfurnished property
• Benefits of letting an unfurnished property
• Letting a part-furnished property
• Furnished vs. unfurnished FAQs for landlords
• Should you let out your rental property as furnished or unfurnished?

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Letting a Furnished Property

When letting a furnished property, landlords and letting agents should include furniture that ensures comfortable living. Include items like:

• Sofas or armchairs
• Dining table and chairs
• Beds
• Wardrobes or drawers
• Desks and chairs (helpful for students and young professionals)

By furnishing your property, you’ll likely draw attention from students and young professionals. They may only stay in your property for a short period (six months to a year) and probably won’t have their own furniture. Many young renters appreciate furnished properties for a quick and hassle-free move.

Furnished properties are in high demand, meaning they’re quick to let and can reduce the frequency of void periods. If you buy durable furniture, it’s likely to last for future tenancies. Even if you have to replace furniture, some of the costs are tax-deductible, meaning it won’t be too much of a strain on your expenses.

We advise landlords and letting agents to grab insurance for their furniture and other contents in case of damage or any other unforeseen events. Creating an inventory for both furnished and unfurnished properties will be helpful in the long run as you can cross-check item conditions or anything that’s missing. Every piece of furniture must also have a fire-resistance label as part of Fire Safety Regulations.

Remember, you should match furniture and take care in designing individual rooms, but you don’t have to spend a lot of money to do so.

Benefits of Letting a Furnished Property

• Attract ‘turnkey’ tenants – Certain types of tenants – such as students, graduates and young professionals – are often more keen on renting furnished properties. This is especially true in city centres.

• Charge more for rent – People are usually willing to pay more for furnished properties, meaning you can earn more on rent each month.

• Reduce void periods – As a general rule, furnished rentals tend to be in higher demand than unfurnished rentals. Particularly in busy city areas, furnished properties are snapped up quicker by tenants, meaning void periods are reduced.

Cheaply Furnishing Your Property

If you’re wondering where you should go hunting for furniture, there are plenty of shops where you can pick up inexpensive and high-quality furniture. Even if you’re still deciding whether to rent out a furnished or unfurnished property, these retailers provide essentials like flooring and curtains.

• IKEA has a great variety of affordable furniture and other items for your property. Even if you’re shopping on a tight budget, IKEA has everything from flooring to wardrobes and drawers. IKEA even provides advice on sustainable living and how to reuse your furniture.

• H&M Home is another great place to shop for furniture. You can easily shop by room, where you can filter your search according to what you’re looking for. Whether you need a new bed or appliances such as lighting, you can find it here with relatively low prices.

• slf24.co.uk is an excellent website if you’re looking for sleek and modern furniture. You can shop for sofas, beds, and even outdoor furniture if your property has a garden. Buying from here will cost slightly more, but students and young professionals may be attracted to the contemporary feel of your property.

• Groupon is another great website for contemporary furniture. You could search for any kind of furniture on Groupon and find great quality items at affordable prices. It shows again that you don’t need to dig too deep into your pocket to get something that looks good.

• Homesense, part of TK Maxx, provides inexpensive furniture and a variety of accessories/decorations to add some pop and colour to your property. You can also grab stylish everyday essentials such as kitchenware and dinnerware.

Though cheap furnishings help save landlords and letting agents money in the short term, it’s advisable to look into buying durable furniture. Even if the furniture is pricier, it may end up being cheaper than furniture which constantly needs replacing.

Remember, your tenants may want to do some decoration themselves, so you don’t have to go overboard on interior design.

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Letting an Unfurnished Property

Contrary to what the name suggests, tenants still won’t be expecting to rent a completely bare property. You need to provide necessities for tenants to live there. These include essentials such as:

• Kitchen fixtures (cabinets, sinks) and ‘white goods’ (fridge, freezer, oven, washing machine)
• Bathroom fittings (toilet, sink, shower)
• Light fittings
• Carpets or other types of flooring
• Blinds or curtains

Whether tenants rent furnished or unfurnished properties, these essentials are helpful for larger flats and houses. They’re especially helpful in attracting tenants bringing their own furniture and wanting to stay for the long-term. Families with their own furniture may gravitate to these types of properties. But unfurnished properties will also attract young professionals seeking long-term stability. Tenants may be happier providing their own furniture, meaning you can save money and won’t have to replace damaged or worn-out items.

Benefits of Letting an Unfurnished Property

• Attract longer term tenants – It’s often the case that tenants with their own furniture will be after long-term rentals. Having the same tenant(s) for a longer period of time will save you administrative effort and reduce void periods.

• Lower upfront costs – Not having to purchase any furniture is an obvious time saver.

• Reduce your insurance costs – You aren’t obliged to insure your tenants furniture, so not having to pay for your own contents insurance will naturally keep costs down.

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Letting a Partly-Furnished Property

If neither side in the furnished vs unfurnished debate appeals to you or your target tenants’ needs, then you can partly furnish your property. Partly-furnishing your property allows flexibility for both you and your tenants. That way, you can negotiate with them if they wish to bring furniture. You should still include essential appliances such as kitchen and bathroom fittings but allow tenants to decide what furniture they want in your property.

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Furnished vs. Unfurnished FAQs for Landlords

What’s the difference between furnished and unfurnished properties?

There isn’t actually a legal definition for ‘furnished’ or ‘unfurnished’. In the above sections, we’ve listed what a landlord would be expected to include in furnished and unfurnished properties.

Unfurnished properties tend to include kitchen fixtures, white goods, bathroom fixtures, carpets and curtains/blinds. The most common items of furniture found in furnished properties include what we’ve just mentioned, along with a bed, table and chairs, sofa/armchairs, a wardrobe and a chest of drawers.

How do furnished properties affect tax?

The ‘Renewals Basis‘ that was introduced in 2016 means you can reclaim tax for the cost of replacement furniture. This includes kitchenware, appliances and soft furnishings.

How do furnished and unfurnished lettings affect insurance?

The major thing to consider with insurance in a furnished property is that you might want to cover all possessions against damage and theft. Getting landlords insurance could save a huge amount in the event of an accident.

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Should You Let Out Your Rental Property as Furnished or Unfurnished?

This depends on several factors. When deciding between furnished and unfurnished, think about the tenants you want to attract, your expenses, and your rental yield. Another important factor to consider is void periods, especially if you want to rent out your property quickly.

Unfurnished and partly-furnished properties will bring in less of a rental yield than a furnished property. If you provide high-quality and good condition furniture, you can justify charging more rent. Though, this also depends on who your target tenants are. For example, if they’re students (who usually have tight budgets), you may have to find a balance.

Whether your property is furnished or unfurnished, make sure you check out our pre-tenancy guide for the safety standards and legal obligations surrounding your furniture and appliances. To get an insight into what renters are looking for in their homes, our blog on tenant demand and the rental market might interest you.

For more information, check out what Resooma can do for landlords, letting agents, and their properties.