As a landlord one of your biggest decisions will be whether to let your property furnished or unfurnished. So which is best? The answer to that is that is largely dependent on who you would ideally like to let the property out to. Young professionals and students, for example are more likely to be looking for a furnished property to rent as they tend not to have their own furniture already. Families and older renters tend to have accumulated their own furniture and will therefore be looking for an unfurnished property.
The key here is really knowing your target market. This is where using the services of a good local letting agent can really pay dividends! They will know what demand is like in the local area and be able to guide you as to what is best.
There are, of course advantages to both types of let. If you decide to let your property furnished, you will attract tenants that want to move in quickly as they will have everything they need already in situ. It is worth bearing in mind if you do decide to let furnished, you must make sure that furniture complies with fire safety regulations and has the relevant labels stating that it meets the statutory requirements.
Until recently, landlords were able to claim a wear and tear allowance of 10% of the net rent when renting a furnished property. Changes in the summer budget have seen this replaced as of April 2016 and means that landlords will now only be able to claim against money actually spent on furnishings in the property, but the good news is this now applies to both furnished and unfurnished properties.
If you decide that it’s best for your target market to supply an unfurnished property, you will save money by not having to furnish it. Another advantage is that when tenants supply their furniture, they tend to stay longer as there is a lot more involved in moving! You will also not be responsible for ensuring it meets fire safety requirements.
There are no hard and fast rules as to what constitutes furnished or unfurnished. The more flexibility you can offer as a landlord, the wider the range of tenants your property will appeal to.
If you’re unsure as to which type of let would be best for you, Northwood are always happy to use their local knowledge and expertise to offer any help and advice you may need.