Should you rent out your property furnished or unfurnished?
Deciding whether to rent out your property furnished or unfurnished requires lots of consideration for landlords. You must decide which is better for attracting the type of tenant you want in your property. As with everything, there are advantages and disadvantages with both options.
Keep reading to learn more.
What is the difference between furnished and unfurnished?
It may seem obvious, but there are some fundamental things to understand when it comes to furnished and unfurnished properties. While furnished properties are, well… furnished, meaning they have furniture such as a bed, sofa and dining room table, an unfurnished property is not completely empty.
While it does not have soft furnishings, an unfurnished property must have curtains/ blinds, carpet or flooring, white goods, bathroom and kitchen fixtures.
Benefits of renting out an unfurnished property
There are several benefits of renting your property unfurnished. Firstly, you will spend less initially, as they will not have to worry about furnishing the property and you will also not have to insure any furniture. Because the furniture is not yours, you will not have to worry about any damages that occur.
In general, an unfurnished home attracts a tenant that is looking for a longer term investment, as they will have committed to moving their own furniture. Tenants also tend to be more content if they are surrounded by their own furniture.
Finally, if you decide to sell your property, you won’t have to clear it out. This will also save you money.
Disadvantages of renting out an unfurnished property
The main disadvantage when it comes to renting out an unfurnished property is that you are only appealing to a certain group of tenants. If you are wanting to quickly fill your property, renting it unfurnished may not be the best idea, as most of the tenants attracted to this are looking for somewhere longer term and may not be willing to move as fast as you would like.
Benefits of renting out a furnished property
The main benefit of renting out a furnished property is that the furniture can be reused for as many tenancies as you like. It is also very likely that you will get a better price for your rental if it is furnished, as this adds value.
Additionally, demand for your property could be higher. This is especially true if the market for furnished properties is good in your area.
Disadvantages of renting out a furnished property
A disadvantage of renting out a furnished property is that you are unlikely to attract tenants who are looking for a long-term place. Therefore, you may be dealing with multiple tenants over the years, which may make it more difficult to create a landlord-tenant relationship.
It can be tricky to decide whether renting out a furnished or unfurnished property is best for you. A lot of this is based on personal circumstances and what the market is like in your area. Be sure to check this out before deciding either way.