Once the last lick of paint has been applied and the carpets have been laid, it’s time to decide whether or not to furnish your rental property. It’s a question that has many landlords scratching their heads. Does a furnished property command a higher rental yield? Or is it more hassle than it’s worth?
What type of rental property do you have? Certain rental properties need to be furnished. For example, if you own a House in Multiple Occupation (HMO) it’s wise to provide furniture, even if it’s the basics of just a bed, wardrobe, and chest of drawers. Whereas freehold properties are best left unfurnished so that tenants can make the property more homely.
What type of tenant does your property attract? Furnished properties are very attractive to short- and mid-term renters such as students and professionals. So, if your property is located close to a university, a furnished property is a good idea. Students will move in straight from their family homes so are unlikely to bring bulky furniture with them. Professional tenants prefer furnished homes as it saves them money and they can move in quickly. An unfurnished property is more suitable for families or elderly tenants who rent for the long term and tend to bring their own furniture with them.
Do you have insurance? If you furnish your rental property, you may want to think about landlord’s insurance to cover any damage that can occur to items within the premises. While this is an additional outgoing, if a large item of furniture needs to be replaced due to breakage or tenant damage, you’ll usually be protected.
Other points to think about when considering furnishing your rental are:
- If tenants are moving large items of furniture in and out, there is a higher risk of damage to your walls/floors
- As a landlord, you are not responsible for insuring tenants’ furnishings
- Tenants in furnished properties can move out easily, so you can get your rental back on the market quickly
- Depending on the location of your rental and the quality of your furnishings, you may be able to command a higher rent
If you want more help and advice as to the best furnishing option for your rental property, give us a call on 01664 566210.