Renting furniture and equipment

[Dutchnick]

We have received an offer to rent the furniture and fittings from a company for our buy to lets and the new ones we propose.

We are assured that we can not furnish a place from new and write it off against income (does it really became capital?) whereas hiring the furniture is 100% allowable against income.

Any ideas? Actually sounds good  and the costs are actually not so great and it includes replacement insurance

[Richlist]

The initial cost of furnishing a rental property cannot generally be offset against rental income (revenue).

Neither can the initial cost generally be offset as a capital expense unless the item is a built in item e.g. oven, hob, dishwasher, wardrobes etc.

I don't know if the cost of renting furniture can be offset against rental income but I would question wether the idea itself is in your best interests to let fully furnished and wether it's cost effective.

When I started letting 20 years ago I did so with fully furnished only but over the years I learnt that there was no advantage to be gained. I didn't get any extra rent and I didn't let the property any quicker. In addition i actually reduced my market as most potential tenants wanted unfurnished/ part furnished. Then I had increased costs.....for inventory, repairs, replacements etc and it takes a lot longer to check in and check out furnished than unfurnished.

I can understand the benefits of renting a furniture pack, short term, in order to dress a property for sale but not longer term for letting.

Why do you want to go down this route ?

[Dutchnick]

We have only catered for students and have generally gone up market and have had very good rental income. In one house this last year we provided smart TVs"/monitors in each room and included Internet connection.  One year on and no problems and new intake for next year were pleading for a tennancy on the recommendation. Not all students are poor! With no furnishing offset to income nor capital the idea of renting in is not so silly, if it can be of ofset great and if it fits in with the term" provision of services wholly concerned with letting" I was hoping to squeeze it through. Hence the question.

[Richlist]

Many of us get very good rental income without having to resort to providing expensive furnishings and most of us don't struggle to relet when tenancies end.

I guess the question is, has your income gone up as a result of the additional expenditure on smart  tv's by enough to justify the expense ?

There is a massive shortage of rental property in most areas so spending less on providing it doesn't always affect your profits.