Should I rent property furnished or unfurnished? Pros and cons for buy-to-let landlords

As a buy-to-let landlord in the UK, one of the decisions you will have to make is whether to rent out your property furnished or unfurnished. There are pros and cons to both options, and ultimately, the decision will depend on your specific situation and goals. In this article, we will explore the advantages and disadvantages of renting your property furnished or unfurnished.

1. Pros of Renting Furnished

1. Higher rental income: Renting out a furnished property can typically command a higher rental income than an unfurnished property, as tenants are willing to pay more for the convenience of having furniture already in place.
2. Attracts a wider range of tenants: Furnished properties are attractive to a wider range of tenants, including students, young professionals, and those who are relocating for work. Furnished properties are also popular among short-term renters, such as those on corporate assignments.
3. Reduced moving costs for tenants: When a property is already furnished, tenants don’t need to spend money on furniture, which can be a significant expense, especially for those moving from overseas or between cities.

2. Cons of Renting Furnished

1. More wear and tear on furniture: Furnished properties are more likely to experience wear and tear on furniture, as tenants may not treat the furniture with the same care as they would their own. This means that landlords will need to replace or repair furniture more frequently.
2. Higher insurance costs: Landlords may need to purchase additional insurance to cover the cost of the furniture and other contents, in the property. This can increase the overall cost of running the property.
3. Higher upfront costs: Furnishing a property can be a significant upfront cost for landlords, as they will need to purchase all the necessary furniture and appliances before the property can be rented out.

3. Pros of Renting Unfurnished

1. Lower upfront costs: Landlords can save money on upfront costs by renting out an unfurnished property. They don’t need to purchase furniture and appliances, which can be a significant expense.
2. Less wear and tear: As there is no furniture in the property, there is less risk of wear and tear. This means that landlords will not need to replace or repair furniture as frequently, which can save money in the long run.
3. Tenants can make the property their own: When tenants move into an unfurnished property, they have the opportunity to make the space their own. This can lead to tenants staying in the property longer and taking better care of the property.

4. Cons of Renting Unfurnished

1. Lower rental income: Unfurnished properties typically command a lower rental income than furnished properties, as tenants may not be willing to pay as much for an unfurnished property.
2. Limited tenant pool: Unfurnished properties may be less attractive to some tenants, such as students or those relocating for work, who may not want to purchase furniture or move it to a new location.
3. Higher turnover: As tenants need to purchase and move their own furniture into the property, they may be more likely to end their tenancy, which can result in higher turnover for landlords.

In conclusion, there are pros and cons to both renting furnished and unfurnished properties, and the decision will ultimately depend on your specific situation and goals as a landlord. If you are looking to attract a wider range of tenants and command a higher rental income, renting out a furnished property may be the best option. However, if you are looking to save money on upfront costs and have less wear and tear on the property, renting out an unfurnished property may be the better choice.

If you are a landlord in the UK, working with a letting agency can help you get the advice you need and manage your property more efficiently. Kings Lettings can provide guidance on legal requirements, tenant screening, and rental pricing, among other things. We can also handle the day-to-day management of your property, including rent collection, maintenance requests, and inspections. By working with us, you can save time and ensure that your property is being managed in a professional manner. Additionally, we have access to a wider pool of potential tenants, increasing the likelihood of finding a reliable and suitable tenant for your property. Overall, partnering with us can provide valuable support and expertise to help you navigate the complexities of the rental market and maximize the returns on your investment. We also offer a free initial consultation so you can get the answers you need – all for helping you make an informed decision.

KINGS LETTINGS, 103 HIGH STREET, MAIDENHEAD, BERKSHIRE, SL6 1JX
Lettings and property management offices in London, Reading, Maidenhead, Staines & Windsor.
T: +44 (0)16 2863 2188 | E: MAIDENHEAD@KINGS-LETTINGS.CO.UK