When deciding whether to let a property furnished or unfurnished, landlords must consider a number of factors, as it’s not always a straightforward decision.
Both options have their advantages, but the key is understanding your target market and the type of property you are letting.
Furnished Properties
Furnished properties are generally more attractive to tenants, especially in London, where 70-80% of tenants prefer furnished homes. This is particularly true where tenants targeted will be young professionals or students who may not own their own furniture, but this can cover a wide variety of properties from 1 or 2 bed apartments, as well as 3, 4 or 5 bed sharer or student flats.
Furnishing your property can lead to slightly higher rent and shorter void periods, making it easier to find tenants quickly.
However, furnishing comes with additional costs and responsibilities. Landlords must provide larger items like beds, sofas, and dining tables, but there’s less of a burden to supply smaller items like pots and pans, which reduces liability.
Additionally, furnished properties can suffer from wear and tear, leading to the need for replacements or repairs, which is something to consider when weighing the costs.
On the plus side, the return on investment can be high. For example, we recently helped a landlord furnish a three-bedroom flat and secured a rental income £400 higher per month than if it had been let unfurnished. With a payback period of around a year, the landlord started seeing a profit from furnishing the property within a short period.
Unfurnished Properties
Unfurnished properties are more popular with families, as they tend to have their own furniture. If you’re letting a three-or four-bedroom house and targeting families, unfurnished may be the way to go.
This option also offers less maintenance for the landlord, as there’s no need to worry about replacing damaged furniture.
It’s important, however, to understand that 'unfurnished' doesn't mean entirely bare. Landlords are still required to provide key appliances such as fridges, freezers, washing machines, and, in many cases, dishwashers, as well as window coverings.
While it’s not mandatory to provide a dishwasher, it encourages tenants to maintain a cleaner, more organised space, which can help with the overall upkeep of the property, so we would generally encourage it from our landlords.
One drawback of letting unfurnished properties is the slightly longer void periods. With fewer tenants looking for unfurnished homes, it may take more time to find the right tenant, though this depends on the time of year and the location.
Flexibility: The Best of Both Worlds
At Rocket Property Management, we recommend flexibility wherever possible and so we often recommend our landlords market their properties as available either furnished or unfurnished.
This approach widens the pool of potential tenants and allows for easy adjustments based on the demand. If a tenant prefers the property furnished, landlords can offer a basic furniture package for a slightly higher rent.
The downside is unfurnished properties can look ‘bare and empty’ and may be less easy to let, so additionally we advise landlords to ‘stage’ their properties, especially when marketing a furnished flat. Adding tasteful décor and staging elements can create a homely feel, making the property more attractive during viewings.
Final Thoughts
Deciding whether to let a property furnished or unfurnished depends on the property type and the tenant demographic you're targeting.
While furnished properties might generate higher rents and shorter void periods, unfurnished properties can appeal more to families and reduce ongoing maintenance responsibilities. By staying flexible and understanding the needs of your market, you can optimise the rental income of your property.
If you’re unsure about the best strategy for your property, Rocket Property Management can help you make the right decision and manage the furnishing process from start to finish.
To book a consultation with our founder, Ben Temple, about your property portfolio, click here.
