It’s one of the most common questions faced by landlords but there really is no right or wrong answer – in fact you might decide that somewhere in the middle is the way to go. A common opinion is that you can achieve higher rents with a furnished property but it really depends what your customer is looking for.
Who is your customer?
The main consideration in your decision is your target customer. Depending on the type of tenant you expect to have in your property, they will have different requirements. Students are more likely to be looking for furnished accommodation, as are young professionals, whereas a family or older tenant is more likely to have some furniture of their own.
If you have a letting agency managing the property on your behalf, it’s worth asking them for their expertise. They’ll know what demand is like in the area and whether furnished or unfurnished gets the best response for your type of property.
Letting a furnished property
Benefits
- It can be more appealing to a tenant if they can see furniture in the room – but avoid it looking cluttered.
- There is usually more demand for furnished property so you are likely to let it more quickly and a furnished property also offers access to the short-term lets market.
- At the end of a tenancy you still have the furniture and can let your property again.
- Landlords who let furnished properties are entitled to claim a wear and tear allowance on their letting income. More information from HM Revenue & Customs.
Disadvantages
- As a landlord, you are responsible for making sure all furniture complies with legislation.
- Although not a requirement, it is sensible to insure your belongings. You should also be prepared for incurring costs for furnishings being damaged and needing replaced.
Letting an unfurnished property
Benefits
- Tenants seeking an unfurnished property may be more likely to stay – once they have moved in with their furniture it is more of an upheaval to move.
- You are not responsible for the furniture or damage to it and you can benefit from breaks in council tax when the property is unoccupied (check with your local authority as this can vary across Scotland).
- It also means that if you decide to sell, it’s much easier if you don’t have furniture to move out.
Disadvantages
- On the downside, properties can look bare and uninviting if they are viewed with no furniture.
- You won’t be eligible for the wear and tear allowance.
- It’s also worth remembering that even if the property is unfurnished, tenants will still expect some white goods to be supplied with the property, along with carpets and curtains, so you should still have landlord insurance.
There is always the option to go with part-furnished. You might want to provide the basics of unfurnished with some extras but not extending to beds, washing machines etc. Whichever route you decide to take, remember the customer’s needs are the most important consideration.
If you are looking for a letting agent to look after your property, s1homes can help you find a trusted agent in your area.