The short answer to the above question is that it depends. The longer answer is that depending on your decision of whether you let out your property furnished or unfurnished the kind of clients that you might attract and the kind of tenant you will find will change.
Renting a furnished property
Smaller properties are typically more furnished and attract mobile tenants.
The pros of renting out such a property are:
- You can rent the property faster because there are more tenants looking for furnished places.
- When the tenants move out, you can use the furniture yourself or offer it to future tenants
- You can also deduct a percentage of the cost of the goods from your taxable items. The cost of the replacement item as well as the cost of disposal of the old item are part of deductible expenses.
Letting an unfurnished property
Generally, landlords with larger apartments or houses tend to leave their houses unfurnished as the tenants are also likely to be older and may have families along with their own furniture.
The pros of letting an unfurnished property could be:
- Tenants who move in with their own furniture might stay for a longer period as moving is a complicated and expensive affair and by bringing in their own furniture, they indirectly hint that they are there for the long haul.
- Tenants bringing in their own furniture is good for you as it means less problems for you as you don’t have to deal with insurance or wear and tear.
Renting a part-furnished property
A part-furnished property is another option that one can consider. Letting agents favour this option since it offers the greatest flexibility to make it easier to find tenants.
You could put in some furniture so that the property looks functional or you could even offer the tenants the choice of extra furniture or not.
Insurance issues
Although it is not a legal necessity to take contents insurance on furniture, you’re advised to do so. You could hire an inventory agent to make a detailed list of everything in the property before you hand it over to tenants.
Once the tenancy is over, the agent will return to check that everything is there and make a note of any damage or wear and tear.
You can’t charge tenants full amount on replacing items that have gone bad through normal wear and tear.
Keep in mind that it is the landlord’s responsibility to inform any change in property status from owner-occupied to tenanted. Otherwise, a future claim could be invalidated.
Safety standards
You can also carry out a portable appliances test which shows that all your electrical goods are in good order and safe.
It is not a legally required test but potential tenants know that you’re serious about safety.
Conclusion
The decision to furnish should be ultimately taken based on the type of property you’re letting out and to whom you’re letting it out.
