The decision of whether to let out your property in a furnished or unfurnished state is one that is often overlooked and considered late into the process. This choice is one that can have an impact on how much attention the property garners, how much time on the market a property spends and even the quality of tenant that it attracts, this decision is one that should have a lot of thought placed behind it.
Furnished properties are generally more popular, and as a result, sell faster. But this isn’t true for every property, take the instance of a bungalow or cottage in a more rural area, it would be best to leave this property unfurnished as it can be assumed that the type of tenant who would be interested in such a property either has or is willing to buy furniture of their own, whereas if your property was located near a city centre, then people may be more interested in renting an already furnished property as they make want to make the move in order to be closer to their place of work or study and so it is more convenient for them.
There are of course, benefits to both options.
Benefits of letting a furnished property include:
- Higher income – the most obvious benefit is that a property that is furnished can charge more in rent.
- Attracts ‘turnkey’ tenants – graduates, young workers and students who are seeking a property that is ready to be moved into and doesn’t require additional charges would view this type of property as very desirable and depending on the facilities of your area, could prove to be a sizeable market.
- Property let faster – as mentioned, properties that come with furniture are known to rent fast and can reduce a properties’ time on the market.
- Two birds with one stone – In the case where you have become an accidental landlord, you may find that it may be more worthwhile and cost efficient to rent out the property in its furnished state, than to pay for a removal company and/or storage of the furniture.
Benefits of letting an unfurnished property include:
- Lower upfront costs – in the instance where a property isn’t already furnished, not having to buy furniture, or buying more neutral ones will keep your upfront costs lower.
- Attracts more long-term tenants – Tenants who want to settle down will often bring their own furniture, or want to purchase it themselves, again, location does play a role here, the more remote and less urban properties would see more interest from such a demographic.
- Lower insurance – Your tenant’s possessions do not need to be insured by you the landlord and so you only need to insure the property itself – in doing so you would most likely pay a lower premium than if you were to take out insurance on the contents of the property as well.
- Peace of mind – primarily in instances where you have been made an accidental landlord, you may have a sentimental attachment to some furniture in the property and so may worry about their condition, in the case of an unfurnished property, there is no need to worry about the condition of the furniture nor sentimental belongings as there are none in the property.
Ultimately, there are many reasons and justifications for choosing whether to rent the property with furniture or not, and it is within your best interests to research the properties in your area as well as envisioning the kind of tenant that would rent yours and make an informed choice.