Deciding whether to furnish your rental property
There are pros and cons to both furnished and unfurnished rentals that you will need to consider before making your final decision.
Much depends on the type of tenant you are targeting and the area you are renting your property in.
For example, if your tenants are likely to be students the chances are they will be looking for a furnished property.
If your tenants are a family with two adults and three children, they will more likely be looking for an unfurnished house.
Advantages of renting out a furnished property to tenants
– You may be able to charge more rent for a furnished property than an unfurnished one.
– Furnished properties are often in high demand, especially in areas where there is a lot of student housing.
– You may be able to claim certain expenses as tax deductions if you rent out a furnished property.
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Disadvantages of renting out a furnished property as a landlord
– You will need to purchase or lease furniture for the property, which can be expensive.
– You will be responsible for maintaining and repairing any furniture in the rental unit.
– There is a higher risk of damage to furniture in a furnished rental unit than in an unfurnished one.
Advantages of renting an unfurnished property to tenants
– You will not need to purchase or lease furniture for the property.
– You will not be responsible for maintaining or repairing any furniture in the rental unit.
– There is a lower risk of damage to furniture in an unfurnished rental unit than in a furnished one.
Disadvantages of renting out an unfurnished property
– You may not be able to charge as much rent for an unfurnished property as you could for a furnished one.
– Unfurnished properties are often in less demand than furnished ones, especially in areas where there is a lot of student housing.
– You will not be able to claim certain expenses as tax deductions if you rent out an unfurnished property.
- Finding Good Tenants
- When Does A Tenancy Agreement Become Legally Binding?
- Landlord Advice: Interview with a landlord
- Should I Rent My Property Furnished Or Unfurnished?
- How Much Rent To Charge For Your Rental Property
How does a furnished property affect the tenancy agreement?
If you do decide to rent out a furnished property, it is important to include a detailed inventory of all the furniture and furnishings in the tenancy agreement. This will help to avoid any disagreements about what items were included in the rental unit at the start of the tenancy.
You should also specify in the written tenancy agreement who is responsible for maintaining and repairing any furniture or furnishings in the rental unit.
What can go wrong with renting out a furnished property?
If you’re considering renting out your property furnished, there are a few things that can go wrong.
Firstly, without a written tenancy agreement in place, it can be difficult to get your tenants to respect your furniture. There may be wear and tear on the furniture from normal use, but if there’s any damage beyond that, it can be hard to know who is responsible.
Secondly, furnished properties can be more expensive to insure. This is because there’s a higher chance of damage to the furniture, and it can be more difficult to replace individual items if they’re damaged or stolen.
Finally, you may find it harder to get tenants for a furnished property. This is because there are often more restrictions in furnished properties, such as no pets or no smoking.
How to protect your furnished property
If you’re still considering renting out your property furnished, there are a few things you can do to protect your furniture.
Firstly, make sure you have a thorough tenancy agreement in place that clearly outlines who is responsible for any damage to the furniture. You should also make sure you list all the items of furniture and the condition on our landlord inventory template, included in the tenancy agreement for England and Wales.
Secondly, consider taking out landlord insurance that covers the furniture as well as the property itself. Although this may mean higher premiums it may be worth it in the long run.
And finally, make sure you screen your tenants carefully to avoid any problems down the line. This can be done easily by performing a tenant background check before renting out your property.
Renting out a furnished property can be a great way to earn some extra income, but it’s important to be aware of the potential pitfalls. By taking some simple precautions, you can protect your furniture and your investment.
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