A majority of tenants are willing to pay higher rents for well-furnished properties
It has been reported that modern-day tenants are more likely to splash out on higher rents if their new homes are well furnished.
Manor Interiors found that a furnished rental home could not only improve your chances of finding a tenant, but it could increase the monthly level of rental yields too.
Manor Interiors says just over a quarter of UK tenants - 26 per cent - would be more likely to view a rental property if it was already furnished.
In addition, another 26 per cent stated that they would be more likely to rent a property that was furnished over one that wasn’t.
The firm’s survey of 1,174 tenants earlier this month found that as many as 66 per cent would be willing to pay more rent per month for a well-furnished rental property - but an even bigger number insisted that the furnishings be of a good quality to justify the expense.
Farhan Malik, CEO of Manor Interiors, commented: “A furnished rental home is always going to carry far greater appeal amongst tenants. Largely due to the money saved on buying furniture when moving into a rental home, during what is an already expensive period once deposits and initial rent payments are made.
"However, it also provides a far greater level of convenience which is something that resonates with the modern-day tenant, removing the need to spend a day or more moving large furniture items from one house to the next.
"Of course, the modern-day tenant also values style and quality and so furnishing a property with below-par furniture is more likely to deter them rather than attract them.
"You need only look at the build-to-rent sector to see the benefit of providing well-furnished homes for long-term tenants. These residents are more than happy to pay a premium for the wider lifestyle benefits provided by the sector and bespoke, high-quality furniture is an integral part of this offering.”
So, with so many people now considering buy-to-let, the question I want to explore is this:
Should you rent your flat furnished or unfurnished?
What does a landlord have to provide in an unfurnished property?
Although the name “unfurnished” suggests that your rental property will be completely bare, there are some things that are generally expected in an unfurnished property:
● kitchen fixtures such as cabinets, a sink, and anything else ‘built in’
● white goods such as an oven, a fridge, a freezer, and a washing machine
● bathroom fixtures such as the sink, toilet and shower
● carpets or other types of flooring
● curtains or blinds
If your property doesn’t come with something from the above list (say your property doesn’t come with a fridge or there are curtain poles but no curtains), make sure you let prospective tenants know. You don’t want a missing item to come as a shock to them when they move in.
What does a landlord have to provide in a furnished property?
Again, as there’s no legal definition, it’s really up to the landlord what they provide. But things that are usually expected are:
● a bed – or more than one, if there are multiple bedrooms in the property
● a table and chairs
● a sofa or armchairs
● a wardrobe or chest of drawers
This is, of course, as well as everything you’d expect to get in an unfurnished property. Just remember. As explained above, the better the furnishings, the higher your rental fee can be!
Benefits of letting a furnished property
● Attract ‘turnkey’ tenants – depending on where your property is, you may find there are tenants in your area who’re particularly keen on furnished properties. Students, recent graduates, and young professionals often prefer furnished properties, and are more likely to be looking for somewhere to live in city centres.
● Let your property faster – in general, furnished properties are more popular than unfurnished, and will be snapped up faster. However, it all depends on where your property is based – a rural cottage may work better unfurnished than a city centre studio apartment. A bit of research can help before you decide.
● Higher income – furnished properties tend to attract more rent than their unfurnished counterparts.
● Spare expenses – if you’ve come into possession of a property that’s already furnished, through inheritance for example, it may be easier and less expensive to let the property as it is rather than pay for the furniture to be removed.
Benefits of letting an unfurnished property
● Attract long term tenants – tenants who’re looking to settle down are likely to come with their own furniture, or want to purchase it. However, this will depend on location – think of the rural cottage vs the city centre studio again.
● Lower upfront costs – if your property isn’t already furnished, not having to purchase furniture will keep your upfront costs down.
● Lower insurance costs – you’re not obliged to insure your tenants possessions, so you may end up paying a lower premium than if you’d decided to protect your own contents.
● One less thing to worry about – if the furniture you supply has sentimental value it might make you anxious to leave it with tenants. Even without that, including it can mean more work when it comes to things like end of tenancy checks, where you may want to minimise your stress.
The difference between furnished and unfurnished in tenancy agreements
If you’re going to be letting your property furnished, it’s important that you reflect that in your tenancy agreement.
The tenancy agreement sets out the rights and responsibilities of both the landlord and the tenant, and if you have expectations about upkeep regarding the fixtures, fittings and furnishings you’re providing, you’ll need to make sure those are covered.
However, you have to remember that acceptable wear and tear is permitted in rental properties, and that includes anything you provide.
Well, I hope this article was helpful.
And remember if you’re looking for a different kind of property experience,
I’m Gary Lintorn - Let Me Get You Moving...
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07985 106832
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