Furnished or Unfurnished property?
After buying your new rental home, you may want to furnish it like a boutique hotel before renting it out. For instance, suppose you are on a budget and have already invested heavily in other areas of the house. The property may then seem just as attractive to rent if it looks clean, spacious, and unfurnished.
How do you decide which option is best? To help you make a better decision, we examine the pros and cons of each option.
Unfurnished Property
Prior to evaluating each choice’s upsides and downsides, let’s better define what is furnished and what is unfurnished. Part-furnished is also an option. So let’s dive in.
A property that is unfurnished has carpets, flooring, a bathroom, and a kitchen. The landlord may include a fully fitted kitchen as unfurnished, which includes an oven and washing machine or dishwasher. However, you may leave space for the oven and washing machine. It’s not as aesthetically pleasing as having an integrated cooker and hob if you leave a space for a free-standing oven. Some tenants may be put off by the installation of the oven and washing machine if you’re on a tight budget.
Part Furnished Property
In addition to the bathroom and kitchen, the part furnished apartment has several items that a tenant would need, including a sofa, a dining table, and maybe a single bed in one of the bedrooms. It might make sense for you to choose this option if you have several properties and happen to have some furniture left over from a pool of furniture you use for all your properties together.
Fully Furnished Property
A fully furnished apartment has everything a tenant needs to move in. There are enough sofas and armchairs to seat everyone who lives there. There are also beds in every bedroom. There are also wardrobes in the bedrooms, possibly with bedside tables and cabinets for clothing.
A coffee table and bookshelves may be present. As well as an oven, the kitchen will have white goods, such as a fridge, freezer, microwave, and kettle. In addition, you can include pots, pans, crockery, and utensils. It is also possible to add bedding to the bedrooms so that a tenant can literally move in with just a suitcase of clothes.
Why are Unfurnished Properties better?
- A rental home without furniture will appear spacious and attractive if you are looking for a fast and cheaper turnaround. You will also have to pay a higher insurance premium if you furnish the property.
- Unfurnished properties that are unoccupied for a sustained period are eligible for a 100% council tax discount. As opposed to that, if it is furnished, half of the council tax is still due.
However.… Not furnishing a property means you will never achieve the top rental value possible for your property.
Why are furnished Properties better?
- The main benefit is you will achieve a high rental per month. You’re hiring to rent your furniture out as well as your property.
- If your property is fully furnished to hotel standards, you could list it as an AIR BnB. This could be a lot of work as it’s short periods of renting however you can make a lot of money weekly or per night. However, it does require a lot more work to clean the property after each occupant has left.
However… Furnishing a property is going to cost and one may not have the budget to furnish their property.
Furthermore, Furniture has a limited lifespan due to damage and wear. The sofa you have at home might last you ten years. An inexpensive sofa in a rental property is likely to look a bit grubby and misshapen after around three to five years.
In the same way, cheaper white goods such as microwaves, kettles, and toasters are prone to breaking down after a few years. That’s all you’ll have to replace. Obviously, if you provided the washing machine, you will be the one who gets a call when it stops working and floods the kitchen.
Whatever you are going to decide, our humble suggestion is to use a property management platform to manage your real estate assets.
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