Should I furnish my rental property?
One of the many decisions that landlords must make when renting out their home for the first time is whether to let the property be furnished or unfurnished. There are advantages to both, and letting property boils down to weighing the initial costs against the possibility for higher monthly rental income.
The decision whether to rent furnished or unfurnished has a bigger effect on your rental property than you may imagine. It will have an impact not just on who you are targeting when searching for renters, but also on how much rent you can reasonably ask, as well as the possible wear and tear on your home.
Advantages of a furnished rental property
- Higher monthly income: Renting out a furnished house may result in higher monthly rental income for you as a landlord. Why? Because typical young professionals looking to rent will be able to rationalise paying a higher rent if they do not need to invest in furnishings. However, not every furnished property may get a higher rent due to various pros and cons. A student property, for example, will almost always be equipped, but you shouldn’t expect the rent to be more than that of a professional lease.
- Easily attract different types of renters: Professionals and students are two examples of the various types of tenants that are likely to be attracted to letting a furnished property . Student housing, for example, must be convenient and, most all, easy to clean. So you won’t need to spend a lot outfitting a student flat, just make it pleasant to live in.
- More time collecting rent: Furnished properties are usually more in demand than unfurnished ones. Therefore, you may be able to rent out a furnished property sooner. That means more time collecting rent and less time worrying about your vacant property.
Advantages of unfurnished properties
- You are not responsible for any wear and tear of the furnishings: Renting an unfurnished house reduces the risk of normal wear and tear-related damage. Moreover, because the tenant provides the furnishings, you are not responsible for insuring these items.
- Tenants stay longer: Tenants who have purchased their own furnishings may remain in a residence for significantly longer periods of time. For instance, a family wanting to start their own house might want to leave their stamp on a rental property by choosing specific fittings. As a consequence, they may be more prone to purchase furnishings, like a sofa, for future use than, let say, a student.
- Less stressful and can save time and money: An unfurnished property is often less stressful. Not only will you save time and money in purchasing what’s inside in the first place, but you also reduce the need to replace the items as they wear out.
Should I furnish or not? That’s the question. The decision is likely to depend on whether the prospect for future earnings justifies the upfront expenses. You don’t need to supply expensive furniture to make a difference, but it should be functional, clean, safe, and attractive to the sort of renter you’re looking for. As a landlord discussing the options with your letting agent to gauge the levels of interest of potential tenants for each type of property in the local area.
Inventory list for furnished properties
It’s important to have a comprehensive inventory checklist if you’re a landlord renting out a furnished property to renters. This will help you settle any disagreements at the end of the lease. Ideally, there won’t be any issues, but if there are, having a shared document that the tenant has co-signed will ensure that you’re protected.
You may either create the list yourself or hire a letting agent who’ll help you maintain it. Whatever approach you choose, make sure you finish it before the tenant moves into the rental property.
An inventory list for a furnished rental property should contain a detailed list of all items as well as notes about their present condition, including:
- Every piece of furniture
- Doors and walls
- Bathroom fixtures
- Flooring
- Windows
- All white goods and electrical appliances
- Front and back garden
You should also make sure that you have high-quality pictures of everything that is included, along with dates. If anything is damaged during the tenancy, whether purposefully or accidentally, you will be able to go back to your inventory, making it easier to notify your insurance provider.
Furnished or unfurnished? Your decision as a landlord.
Whether you want to rent out your property unfurnished or want to increase your rental income by renting out a furnished property, there is a lot to think about before you move forward. This article is a good place to start!
