Rental properties are always in high demand, and according to figures released by HomeLet, the Private Rental Sector (PRS) is still growing. However, as more and more investors look towards building their portfolio, you could find garnering interest in your property a struggle.
One way to solve this issue is by providing furniture for your tenants. Landlords have been debating the value of renting property furnished or unfurnished for years, with many citing the benefits and with others only thinking about the initial costs.
There are many great reasons as to why you should consider renting your property fully furnished, though, all of which we will explain in full detail throughout this blog.
Make Your Property Stand Out
Potential tenants could be viewing several different properties in your area, which makes it harder for any home to be more memorable over another. Keeping your property in front of potential tenants’ minds is easier when there’s something about your property that’s unique.
In one of our previous blogs, we advised landlords to be brave with accessories. Bold statement pieces such as artwork captures people’s attention, and when it comes to making a decision over where to rent, it’s your property that will first come to mind.
However, it’s not always the quirky elements you’ll be remembered for, but the attention to detail you’ve put into making a house feel like a home for tenants. Add style and comfort to your property with mirrors, cushions and even your choice of lighting, and it will add a certain pop to your rental. When deciding on whether renting property furnished or unfurnished is right for you, consider what a potential tenant would actually prefer. Getting to know your target market will help you make the right choice, as we discuss a little later on.
Increase Your Rental Figures
The hassle that goes into decorating and furnishing a property can be too much for some potential tenants. 62% of Britons even went as far as saying moving was the most stressful life event we go through, with reasons such as moving heavy items and forgetting how to put furniture together coming high on the list.
While there are a few initial costs that come with purchasing furniture, landlords can quickly recoup their expenditure by increasing rental figures to reflect the improved quality of the property and convenience of having the place ready to live in immediately.
Property Wire reported that data from OnTheMarket found a furnished flat in Manchester could yield on average an extra £101 a month for landlords, an increase of around 15% for a two-bed property.
If you’re unsure whether or not to be renting property furnished or unfurnished, think about how long you plan on holding onto your investment. Over time, the profits of providing furniture will greatly outstrip the initial cost, so it’s something worth bearing in mind.
Appeal to a Wider Market
As mentioned in the point above, many people in Britain find moving stressful, and there are several different types of tenants who will be attracted to a furnished property. Hassle-free renting appeals to:
- Mobile professionals looking for trendy, affordable and commutable locations
- Corporate tenants
- Short term let tenants
- Tenants from overseas
- Lifestyle renters
It’s worth remembering that properties based in high-demand locations have the potential to rent faster when furnished, especially when there are plenty of amenities nearby, as it means the property has everything needed to be lived in straight away.
What You Need to Keep in Mind When Letting a Furnished Property
Letting a property out that’s part or fully furnished has many benefits to it, but consumers won’t settle for a rental that’s not been completed to a
decent standard. As such, it’s important you keep the following points in mind when preparing your property:
Safety Must Come First
As a landlord, you have a duty of care towards tenants, so their safety must always take priority. Faulty furniture that’s not fit for purpose can put a tenant’s life in serious danger, which is why it’s essential you purchase items from a reputable source.
LOFT’s range of furniture has passed the UK’s Fire Regulations, so you can be confident in our ability to provide your tenants with safe and practical products for their enjoyment.
For more information on furniture fire safety, click here.
Cheap Doesn’t Necessarily Mean Cost-Effective
Unfortunately, some landlords think they can charge a premium rate for their property because they’ve included the bare essentials. However, it’s these landlords who struggle to make an impact when potential tenants come round for a viewing.
Furniture that looks and feels cheap gives off the wrong impression, which is why you need to find a provider who believes luxury can be affordable. The right furnishings show you actually care about the tenant’s quality of life, which increases the potential of them becoming long term tenants — or at the very least, improves your reputation as a landlord, meaning future prospects are more likely to make an enquiry about your properties.
Furnishings Still Belongs to You
Your tenants have use of the furniture you’ve provided, but ultimately, all the pieces still belong to you. With that in mind, make sure you come up with a checklist detailing the condition of your items and go through it with tenants. If any of your furniture is damaged, you may be able to keep a percentage of their deposit to cover the cost of replacing items.
Furniture can also be tax-deductible if you need to replace anything, so it’s worth hanging on to your receipts and checking with HMRC if any sum can be reclaimed.
Make sure to also have landlord contents insurance in place, as this will cover you in the event sofas, beds and other free standing furniture is damaged beyond repair.
Should You Be Renting Your Property Out Furnished or Unfurnished?
Renting property furnished or unfurnished comes down to the finances. If your rental is a long term investment, then providing furnishings should be high on your list of priorities. With a premium in place, the initial costs can be easily recouped.
At LOFT, we specialists in providing landlords with affordable, quality furniture. Our goal is to ensure your tenants have everything they need to live comfortably, while reducing the amount of stress and cost involved for you.
For more information on our furniture range, check out our collection, and feel free to get in touch if you need any more advice on whether you should be renting property furnished or unfurnished.