Should I let out a property furnished or unfurnished?

[geek84]

Good Morning Folks

I am in the process of buying my first buy to let property. Obviously, it would have no furniture or any type of storage units. Before letting it out to tenants, should I put some in some sort of furniture such as beds, settees, chairs, small cabinets etc.?

Thanks in advance for your responses.

[Richlist]

There is no official definition of furnished or unfurnished.

How much furniture / furnishings you provide will depend on the type of property, its size, its location, your target market etc etc.

Furnished property often does not command a significant rental premium, will often cause the landlord more time effort & expense at check in// check out, will narrow your ability to let as the furnished rentall market is smaller than unfurnished/ part furnished, will attract a completely different tenant to an unfurnished and will often cost more in terms of council tax during void periods.

[Grampa]

I agree with the above. The only advantage is if you need to "dress" the property to show its potential when trying to rent it out and the only time I have done that is if a property is tricky to rent out.

Most people nowadays have their own furniture unless your target tenants are cooperate rents such as high flyers moving into a area for their job for 6 months or so. If so be very careful because the companies will want to use their own contracts and they are very bias towards the tenant and company and they try to pressurise landlords to a take it or leave situation.

[Richlist]

I currently have X6 fully furnished in my portfolio and have let fully furnished for over 10 years now.

Neither I or my agents accept 'company lettings' where a Company rents the property & then sub let on to their employees. Mainly because mortgage lenders don't allow, leases often don't allow and one can't use an AST for that type of let.

As Grampa says there are a few positives.....here are a few:

* You don't get any damage with tenants moving their own furniture in & out.

* There are usually.......at least in my area......very, very few fully furnished properties and there are always more people looking than properties available. So, they let quickly and the landlord gets lots of tenants to pick from.

* Many are professionals......so failure to pay rent or cause to many of the problems we often hear on this forum are virtually non existant.

* Fully furnished property can claim 10% w & t allowance or renewals.....unfurnished can't do either as from last April.

* There's a small premium on my fully furnished rents.....but it ain't much.....often less than 10% of unfurnished.

[geek84]

Good Morning Folks

Thanks very much for your replies.

[Loft_Interiors]

if you're going after students then getting it furnished might not be a bad idea

[geek84]

I'm not thinking of having students but a family or professional people.

[Richlist]

Its important to draw up a specification of your target tenant.....ie what you will accept & what you won't accept in order that you can prepare the property accordingly.......and therein lies your dilema:- .

Professionals often own their own house somewhere else in the country or are from overseas.....in both these examples they will often be looking for furnished accomodattion.

Families, on the other hand, often have their own stuff and will be looking for unfurnished or part furnished.