Landlord is it a Furnished or Unfurnished Property


For many landlords the decision to rent a property out furnished or unfurnished is a big question and it brings its own problems and certainly brings different types of tenants and rental prices.

The for’s and against need to be looked at before you make a decision on your letting type.  Being a Landlord of property, can be a timely and stressful dependant on how many properties you own.  We all hope to have great tenants that do not cause us headaches and renting out a property can be a profitable business, however you do need to ensure you have protected your investments and have the right landlord insurance in place.

The Business Octopus have put together some tips that could help you make that all important decision.

What is a furnished property? 

Letting a property furnished would mean you as the landlord would need to supply everything for the property and the tenant would just bring with them their personal items.  Letting a furnished property can be an attractive benefit for the tenant, for example –

  • The tenant can save money by not having to purchase furniture and white goods.
  • Your property may let quicker and a majority of people do prefer a furnished property especially if the property is of high standard furnishings.
  • The furniture is the property of the landlord.
  • As a landlord you can claim wear and tear allowance to cut income tax.
  • Your landlord insurance contents cover will insure your owned contents, fixtures, fittings and household items.  Contents Cover is also normally arranged on a new for old basis. (See details here for Landlord Insurance with The Business Octopus).

But there can be negatives too for example –

  •  You as the landlord would be responsible for making sure that all furniture and white goods are safe and have the correct safety certificates / test certificates as required.
  • If anything is broken or found to be broken when the tenancy comes to an end then it could cause disagreements on who is responsible for putting right.
  • Tenants may have some white goods or furniture so you as the landlord may have to agree on removing some items which can then cause a problem of storage.

What is an unfurnished property?

You may decide that furnishing a property could be costly for you and you would rather let the property as unfurnished.  However, understanding what ‘unfurnished’ means for a landlord is important for your tenant.

What you need to make sure you supply within the property are.

  • All carpets, curtains, lampshades and white goods (cooker, fridge, washing machine).
  • Bedroom furniture may be included but not always necessary as most tenants have their own beds.

Letting a property as unfurnished can again create great benefits for a new tenancy let, for example –

  • Tenants may stay longer and they will be more happy if they have their own belongings around them.
  • You as the landlord would not be responsible for furniture and white goods and having to keep in a good state of repair.
  • And you would not need storage facilities if tenants do not want particular items.

But the negatives are –

  • Cost of the rental could be considerable lower.

The above are just some of the little items that need to be thought about before you make the decision on letting a property.   And do remember that as a landlord you can also claim up to around 10% wear and tear allowance, of which the 10% is charged as a percentage of net rents for the year, not the value of the furniture. For more information look at the HM Revenue & Customs website site.

 Are you a landlord of property?