To Let - Furnished or Unfurnished: That is the Question!

In years gone by property was generally let furnished, I am led to believe that in the 60’s and 70’s there were often tax breaks for landlords offering furnished accommodation, it was also seen as easier to gain possession if the property was furnished.

Deciding whether to offer your rental property furnished or unfurnished is a critical decision that can impact your choice of tenants and management responsibilities.

Both options have their own set of advantages and challenges, and the best choice depends ultimately on what suits you. With the current lack of good quality rental accommodation available in Bournemouth and Poole various factors including your target market, property location, and long-term investment strategy should help you to decide. Here’s a comprehensive look at the pros and cons of each to help you make an informed decision.

Pros and Cons of Furnished Lettings

Pros of furnished lettings

1. Higher Rent

If the furnishings are of a high quality, furnished properties often command higher rental prices compared to unfurnished ones. Tenants are willing to pay a premium for the convenience of moving into a fully equipped home.

2. Attract Shorter Term Tenants

If you are only looking to rent your property for a shorter period say one to two years then this may be the option for you. Not only will you not have to worry about storing your furniture but also the property will attract professionals and overseas tenants moving into the area on a short term work contract.

3. Quick Turnaround.

For Tenants the ease of not having to organise furniture removals can often mean that they can move more quickly, reducing vacancy periods. The property is ready to rent immediately without the need for tenants to arrange their own furniture.

4. Increased Demand Over the past 15 years, furnished accommodation has become more popular due to the lack of availability. Landlords looking to rent long term often offer their property on an unfurnished basis, meaning there is less choice for a tenant looking for furnished accommodation.

Cons of furnished lettings:

1. Higher Initial Investment

Furnishing a property requires a significant upfront cost. This includes buying furniture, appliances, and decorative items. As well as the cost of providing an inventory, check-in and out is all more expensive for a furnished property.

2. Maintenance and Wear

Anything you provide as a landlord during a tenancy, you must continue to provide, therefore if the kettle breaks mid term you must replace it. You may also need to replace items more frequently.

3. Insurance Costs

Insurance for furnished properties can be more expensive due to the higher value of contents that need to be covered for obvious reasons, only being able to take a maximum of 5 weeks rent as deposit could mean that replacement costs may not be covered by the deposit amount

4. Tenant Turnover

Shorter term tenancies will lead to higher tenant turnover, which may result in more frequent periods of vacancy and additional administrative work.

Pros and Cons of Unfurnished Lettings

Pros of unfurnished lettings

1. Lower Costs

Initial setup costs are lower since you don’t need to provide the larger items of furniture, like beds and sofas. Maintenance costs are also reduced as you’re not responsible for repairing or replacing these items of furniture. Whether letting furnished or unfurnished tenants generally expect white goods to be included.

2. Longer Term Tenants

If a tenant provides their own furniture as a general rule they tend to stay at a property longer – who wants to lug your furniture up and down stairs in apartments more often than every couple of years? This can lead to more stable and consistent rental income, if they have their own belongings around them it tends to feel more like home.

3. Less Wear and Tear

When tenants provide their own furnishings, if they break or need replacing then that is up to them this will reduce your ongoing maintenance efforts and costs.

4. Simplified Management

Managing an unfurnished property is generally easier as you have fewer items to maintain, repair, or replace.

Cons of unfurnished lettings:

1. Storage Costs

If you do decide to rent your property unfurnished but you already have the furniture, you will be liable for storage costs for your existing furniture.

2. Increased Risk of damage to Decor

When moving their furniture in and out of the property there is an increased risk that communal areas or your own decoration may becoming damaged, the tenant however would be liable for the redecoration if it could be proved the damage could have been avoided.

Factors to consider in choosing to offer a furnished or unfurnished letting

1. Target Market: Identify who your potential tenants are.

Young professionals, students, and shorter-term contractors often prefer furnished properties, while families and long-term renters might lean towards unfurnished options.

2. Investment Strategy: Consider your long-term investment goals.

If you prefer stable, long-term rental income with less frequent tenant turnover, an unfurnished property might be the better choice. If you’re looking for higher rental income and are prepared to manage more turnover, a furnished

property could be more profitable.

Ultimately the decision to offer your property for rent furnished or unfurnished depends on your choice. Both are equally viable and lettable in the current market conditions. The law does not differentiate in terms of tax and legislation and therefore the matter is very much down to your personal choice.