Help decide whether to rent your property on a furnished or unfurnished basis.
You want your property to generate a healthy rental yield. One factor that could influence this is whether you rent it on a furnished or unfurnished basis. To help decide which is the best option for you, consider the following factors:
1. Is the weekly rental amount affected?
The current market demand will dictate whether providing furniture will increase the rent. You may achieve a higher rent for a furnished property but you need to consider the initial outlay and maintenance of the furniture as part of your costs.
2. Will void periods differ?
Likewise is there more demand for furnished or unfurnished properties? This could influence how quickly the property lets and whether there are any periods between tenancies where no rent is generated.
3. Should I provide electrical items?
It is the norm to provide a washing machine, air conditioning, fridge and oven, however additional items such as televisions, lamps and small kitchen appliances like kettles and toaster will vary. As a landlord you need to remember that you will need to replace these should they get broken.
4. What is the market you are aiming for?
A family are more likely to have their own items of furniture whereas a professional tenant will like the ease of having everything provided for them. The property will influence whether furniture should be provided or not. This is especially the case for smaller properties where it may be hard to envisage the furniture that can be fitted in a small space so providing furniture is often the best choice.
5. Will the length of the tenancy be affected?
In most cases unfurnished properties will experience longer tenancy terms simply because a tenant has taken the time and effort to fit all their furniture so it is unlikely that they will want to move again soon.
6. Window dressings should be included.
Even in an unfurnished property window dressings need to be provided whether you choose a black out blind or curtains.
7. If you can, be flexible.
Be open and consider offers on their individual merits even if these means providing certain furnishings. This way you will be able to let your property quicker.