I'm thinking of renting out my property- should I let it furnished or unfurnished?
When letting a property, it can be let unfurnished, part-furnished or fully furnished. Each has its own advantages and disadvantages. In some areas furnished properties may be in high demand whereas unfurnished is preferred in others. The choice you make might attract a different type of tenant, so the pros and cons of each option should be considered.
If you let your property unfurnished, you will not need to make the initial outlay of purchasing furniture and you then won’t be responsible for repairing items during the tenancy or replacing them at the end. It may also make the issue of deposit return at the end of the tenancy more straightforward, as the potential damage versus wear and tear of furniture won’t need to be taken into account. Some tenants also already own furniture which they wouldn't want to put into storage.
Letting the property furnished can be attractive to lots of tenants, such as students, who can't afford to worry about purchasing their own furniture. Although furnishing a whole property can be expensive initially, you will likely make the cost back in the higher rent that you will be able to charge for a furnished property and if you decide to take the property back at any point then you will be able to keep the furniture or potentially offer it to your tenants. Landlords may also be able to claim tax-relief on the cost of replacing items in a fully-furnished property (See more)
Another option is made possible through ludlowthompson’s relationship with David Phillips, whereby you can rent the furniture for your property. David Phillips provide a tax efficient way of furnishing a property; by classing it as an allowable expense, the lease cost is deductible from your taxable profit as it's incurred. With this offering you have the freedom to be flexible with your rental property choosing furnished or unfurnished, depending on the current market requirements and the tenants you wish to attract. This type of furniture rental avoids the upfront costs associated with furnishing your property yourself, by spreading the payments over the course of the tenancy. It is also a hassle free process; the furniture will be delivered, assembled and installed byour preferred provider, ready for the start of the tenancy, and removed at the end.
28th April 2016
DISCLAIMER: Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser
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