Letting out a property is a great way to make a passive income; however, before you get to that point, one of the biggest considerations that you are going to need to make is choosing whether to let out the property furnished or unfurnished. Truthfully, there really isn’t a right or wrong way to go here; it really comes down to the demands of the tenants and your personal circumstances too. Read on to learn more.
What Does ‘Furnished’ Mean?
In legal terms, there really isn’t a concrete definition of a ‘furnished’ property. However, tenants know what they want, and you trying to claim a property is furnished won’t fly unless it has at least the following:
- A bed – in every bedroom
- Wardrobe/drawers – in every bedroom
- Table and chairs
- White goods
- Soft furnishings
Those are the minimum expected in a furnished property because the idea is that the tenant can move in and live in the property as is. An unfurnished property may be totally empty, or it may still have soft furnishings and white goods; again, there is no legal definition of an unfurnished property.
Any furniture you do provide needs to be tested and certified as safe. This means the fabric on sofas and soft furnishings meeting safety standards and any electronics being tested too. In fact, it might make sense to get an electrical installation condition report to say that the home’s electrics are up to code. If you want an EICR in London, then you should check out Hexo Electrical Testing.
Which is Better?
Renting out your property already furnished saves you money in removal and storage fees. It also saves the tenants money, which tends to be a selling point. Furnished rentals often have a higher rental price. You retain the ownership of the furniture, so at the end of the term, you can decide to sell it or keep it and use it for yourself.
On the other hand, leaving a rental property unfurnished can save you money because you don’t have to provide anything. There are tenants that prefer unfurnished properties because they already have their own furniture, and they don’t want to have to then pay to store that furniture to move into an already furnished property. If you do eventually decide to sell the property, then you don’t need to worry about moving any furniture out. There are also fewer concerns where your tenants are concerned because they aren’t in a position to wreck or ruin any of your furniture.
If you are considering letting a property, then this is something that you will really need to think about. It is worth doing some research to find what types of rental properties tend to do better in your area. As a general rule, flats and apartments in urban settings tend to be furnished, and homes in suburban and rural areas tend to be unfurnished. That being said, it is, of course, totally up to you.