When you start planning to let out your property, there are a number of questions you need to ask yourself. How much rent will you charge? Do you want a property management company or will you do that yourself?
Choosing whether to rent your property furnished or unfurnished may not seem like one of your highest priorities, but it’s an important consideration that can impact the type of tenants you’re likely to attract.
Before we dive into the pros and cons of each, let’s define exactly what we mean by furnished and unfurnished.
To start with, it’s important to note that there’s no legal definition of furnished or unfurnished, but there are some expectations about what will and won’t be included.
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:
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.
Furnished (or ‘fully’ furnished) properties are ones that have more than the bare minimum you get with an unfurnished flat.
Again, as there’s no legal definition, it’s really up to the landlord what they provide. But things that are usually expected are:
This is, of course, as well as everything you’d expect to get in an unfurnished property,
A part furnished property is, as it sounds, a halfway house between unfurnished and furnished. Maybe you have some furniture that comes with the property, but not enough for it to be considered furnished.
If you have multiple properties, or somewhere you can store furniture, part-furnished properties can give your tenants flexibility – they might have some of their own furniture, but not all, so want to keep some items in the property and have others removed. For some landlords this won’t be a practical option, but it can help you attract tenants.
There isn’t a straightforward answer to whether you should rent your property furnished or unfurnished. It depends on what type of property you have, where it’s located, what sort of tenants you’re after, how much work you’re willing (or able) to put in – among other things.
Here are some of the potential benefits of letting a furnished property:
While there are benefits to renting out a furnished property, there are also benefits to choosing to go unfurnished:
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.
Have a look at our tenancy agreement template to get you started, but it’s best to seek legal advice – either directly or through your letting agent – to make sure that you’re both protected and operating within the law.
When you decide to start renting out your property, it’s important that you take steps to protect your investment – whether that’s from a disaster like a fire or flood, or from unruly tenants.
If you choose to include furnishings in your property you may want them to be covered against damage and theft. That’s when you would want to take out landlord contents insurance alongside your building cover.
Whether your property is furnished or unfurnished, many letting agents will recommend you get a Portable Appliance Test (PAT) for any electrical appliances you provide. The PAT will ensure they’re in safe working order. Though it’s not a legal requirement, it can reassure tenants that you take their safety seriously.
For furniture, however, you will need to make sure it meets the legal standards of flame resistance. All fabric furniture – such as sofas, armchairs and mattresses – must have labels proving that they meet this standard. Almost all furniture comes with these labels these days, so you just need not to remove them.
Read more about landlord electrical safety regulations.
If you let furnished property, the 'renewals basis' introduced in 2016 means you can reclaim tax for the cost of replacement furniture. This includes soft furnishings, appliances and kitchenware.
Find out more about tax and allowable expenses in our guide to Self Assessment for landlords.
Will you let your property furnished or unfurnished? Let us know in the comments
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
12 March 2020 • 2-minute read
Chancellor Rishi Sunak announced the first UK Budget since October 2018 amid continuing political and economic uncertainty. Here’s the key…
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2020 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.