Pros and Cons of Renting Furnished vs. Unfurnished Properties

Most private rental properties in the UK are unfurnished. However, this doesn’t mean there aren’t advantages to letting out a furnished home. Whether you are a tenant searching for a comfortable home or a landlord seeking to attract the ideal tenants, understanding the pros and cons from both perspectives is crucial.

At Westport Property, we recognise the importance of making informed choices when renting a property. We delve into the convenience, flexibility, costs, personalisation options, and legal aspects associated with each type of rental.

Deciding whether to furnish your rental property involves weighing various factors. Both Furnished and unfurnished properties offer unique benefits and challenges. This guide explores key considerations to help you make the best choice for your rental. 

Identifying Your Ideal Tenant’s Lifestyle

When considering tenants’ rights for furnished or unfurnished properties, it’s essential to match the offering with the tenant’s lifestyle. Family renters, for instance, often have their own furniture and seek unfurnished homes where they can bring their belongings. These tenants, whether moving locally or relocating, usually prefer to be surrounded by their possessions, making a place feel like home quickly. Additionally, those looking for unfurnished properties are typically interested in long-term rentals, providing landlords with financial security through stable, long-term tenancies.

On the other hand, some market sectors actively seek furnished properties. Tenants relocating may have stored their furniture, requiring a fully furnished home and who don’t have enough furniture to fill a larger house might look for homes that come with some essential pieces. Young professionals, especially first-time renters, often prefer furnished properties until they can invest in their own furniture. In cities, furnished apartment rentals close to business centers are particularly appealing to professionals needing a convenient base during the workweek, allowing them to move in with just a suitcase.

Adaptability is Key

For landlords, offering flexibility with furnished or unfurnished options makes good business sense. Being open to tenants’ furniture requirements can significantly widen the pool of potential renters. While some landlords may prefer to market their property as furnished to avoid the hassle of storing items, this could mean missing out on tenants who prefer unfurnished spaces. Providing the option to rent with or without furniture—either as a complete package or on an individual basis—can set a landlord apart from the competition.

Even when renting out an unfurnished property, it’s wise to ‘dress’ a few rooms for marketing purposes. Well-staged property photographs help prospective tenants visualise living in the space, potentially leading to more viewings than pictures of empty rooms.

Factors Influencing Your Decision

Deciding whether to offer a furnished or unfurnished property can impact how quickly it rents and its overall appeal. Consulting with a letting agent can help determine which option suits your market best. If you’re unsure, it might be wise to wait until you find a tenant who can specify their needs.

While furnished properties with high-quality items can command a premium, they don’t always guarantee higher rental income than unfurnished ones. Tenants today expect durable, appealing furniture, so investing in quality pieces is essential. Custom-designed or fitted items, like wardrobes or dining tables, are often well-received and can add value.

Landlords should also be prepared to replace items that wear out through standard use, as tenants are entitled to like-for-like replacements. Keeping an inventory and ensuring all soft furnishings comply with fire safety regulations are crucial responsibilities, but the good news is that the purchase of fixtures and fittings is tax-deductible.

For those considering furnishing their rental property, consulting specialised services can offer valuable advice and help maximise the property’s design.

Furnished Rental Properties

In the ever-evolving landscape of real estate, the choice between furnished and unfurnished properties has become increasingly significant for both tenants and landlords.This guide explores the key benefits and challenges of furnished rental properties, helping both tenants and landlords make informed decisions.

Evaluating the Need for Furnishing

The decision to opt for a furnished apartment rental hinges on various factors that potential tenants must carefully consider. For professionals on temporary assignments, students studying abroad, or individuals in transition, furnished rentals offer an unparalleled convenience. These properties eliminate the need for substantial upfront investments in furniture and household items, making them particularly attractive for short-term stays.

However, the appeal of furnished rentals extends beyond just convenience. They provide an immediate sense of home, crucial for those relocating to new cities or countries. This instant comfort can significantly ease the stress associated with moving, allowing tenants to focus on other aspects of their transition, such as adapting to a new job or exploring their new environment.

For landlords, the decision to furnish a property is equally complex. It involves weighing the initial investment against potential returns, considering the target demographic, and assessing the local rental market dynamics. In areas with high turnover rates or popular among young professionals and students, furnished properties can command a premium and attract a steady stream of tenants.

Essential Inclusions for a Furnished Rental

A well-appointed furnished rental goes beyond providing a bed and a couch. To truly meet tenants’ needs and justify the “furnished” label, properties should include a comprehensive array of items:

• Kitchen Essentials
  • Major appliances: Refrigerator, stove, oven, microwave, and dishwasher
  • Small appliances: Coffee maker, toaster, and electric kettle
  • Cookware: Pots, pans, baking sheets, and casserole dishes
  • Utensils: Cutlery, cooking utensils, and serving spoons
  • Dishware: Plates, bowls, glasses, and mugs
    
• Living Room Items
  • Seating: Comfortable sofa, armchairs, or loveseat
  • Tables: Coffee table, end tables, and TV stand
  • Entertainment: Television (often expected in modern furnished rentals)
  • Lighting: Floor lamps and table lamps for ambiance
    
• Dining Area Setup
  • Table and chairs appropriate for the space and number of bedrooms
  • Placemats or a tablecloth for protection and aesthetics
    
• Bedroom Necessities
  • Bed frame and mattress (quality is crucial for tenant satisfaction)
  • Dresser or chest of drawers for clothing storage
  • Nightstands with lamps
  • Closet organisers or clothing rack if built-in closets are absent
    
• Additional Items to Consider
  • Window treatments: Curtains or blinds for privacy and light control
  • Basic decor: Wall art, throw pillows, and area rugs to create a homey atmosphere
  • Cleaning supplies: Vacuum cleaner, mop, and basic cleaning tools
  • Outdoor furniture for properties with balconies or patios
    

Tips for Successfully Renting a Furnished Property

• Conduct a Thorough Inventory Check: Before moving in, tenants should meticulously document the condition of all furnished items, preferably with photographs. This protects both parties from disputes over damages at the end of the tenancy.
  
• Understand Tenants’ Rights in Furnished Properties: Tenants’ rights can vary depending on whether a property is furnished or unfurnished. In some jurisdictions, furnished properties may have different rules regarding notice periods or rent increases. Familiarise yourself with local regulations to ensure you’re aware of your rights and responsibilities.

• Clarify Maintenance Responsibilities: Establish clear guidelines on who is responsible for maintaining and repairing furnished items. While structural repairs typically fall to the landlord, responsibilities for furniture maintenance can be less clear-cut.
  
• Document Everything: Beyond the initial inventory, keep records of any communications regarding the furnished items throughout the tenancy. This documentation can be invaluable in resolving any disputes that may arise.

Benefits for Tenants in Furnished Rentals

• Ease and Convenience: The primary allure of furnished rentals is the ability to move in with minimal effort. This convenience is particularly valuable for international relocations or quick moves, where transporting furniture is impractical or costly.
  
• Mobility and Flexibility: For those whose careers or lifestyles demand frequent relocations, furnished rentals offer unparalleled flexibility. They allow tenants to maintain a good lifestyle without the burden of moving or storing furniture.
  
• Cost Savings: While furnished rentals typically command higher monthly rents, they can result in significant savings for tenants. The costs of purchasing furniture, appliances, and household items for an unfurnished property can be substantial. Additionally, furnished rentals eliminate moving expenses associated with transporting large items.

Benefits for Landlords of Furnished Rentals

• Higher Rental Demand: Furnished properties often attract a broader range of potential tenants, including corporate clients seeking short-term housing for employees. This increased demand can lead to shorter vacancy periods and more stable rental income.
  
• Distinctive Selling Point: In competitive rental markets, offering a fully furnished property can set a listing apart. It provides a unique value proposition that can attract tenants who prioritise convenience and are willing to pay a premium for it.
  
• Potential for Higher Rental Income: The added value of furnishings often justifies higher rental rates. Landlords can typically charge 15-20% more for furnished properties compared to their unfurnished counterparts, depending on the quality of furnishings and local market conditions.

Drawbacks of Furnished Rentals

• Limited Tenant Customisation: One of the most significant drawbacks for tenants is the lack of personalisation options. Living with someone else’s furniture choices can feel impersonal and may not align with a tenant’s tastes or lifestyle needs.
  
• Ongoing Maintenance and Replacement Costs: For landlords, furnished properties require a more hands-on approach to management. Furniture and appliances will inevitably wear out or become damaged, necessitating regular inspections, maintenance, and occasional replacements. These ongoing costs must be factored into the long-term financial planning for the property.

Unfurnished Rental Properties

Unfurnished Rental Properties play a significant role, offering unique advantages and considerations for both tenants and landlords. Understanding what “unfurnished” truly means is crucial for anyone navigating the rental market.

Essentials for Unfurnished Rentals

When a property is described as unfurnished, it’s important to understand what this typically includes:

1. Basic Fixtures:
   • Lighting fixtures
   • Bathroom fittings (toilet, sink, shower/bathtub)
   • Kitchen sink and countertops
     
2. Major Appliances:
   • Stove/oven
   • Refrigerator (in some cases)
     
3. Window Treatments:
   • Basic blinds or curtain rods (but not always curtains)
     
4. Flooring:
   • Carpet, hardwood, tile, or other installed flooring
     
5. Built-in Storage:
   • Closets and cabinets

Tips for Renting Out an Unfurnished Property

For landlords considering offering their property as unfurnished, consider the following strategies:

• Highlight Flexibility: Emphasise the blank canvas aspect, allowing tenants to create their ideal living space.
  
• Ensure Quality Basics: While the property is unfurnished, ensure that the included essentials (like appliances) are in excellent condition.
  
• Consider Partial Furnishing: Offering some key items (like a refrigerator or washer/dryer) can make your property more attractive without fully furnishing it.
  
• Clear Communication: Provide a detailed list of what is and isn’t included to avoid misunderstandings.
  
• Know Your Market: Research local trends to understand if unfurnished properties are in demand in your area.

Benefits for Tenants in Unfurnished Rentals

Unfurnished rentals offer several advantages for tenants:

• Customisation and Comfort: The primary appeal of an unfurnished rental is the freedom to personalise the space. Tenants can choose furniture and decor that suits their taste, lifestyle, and needs. This level of customisation often leads to a greater sense of “home” and can significantly enhance comfort and satisfaction with the living space. For those with specific furniture needs (e.g., ergonomic chairs for work-from-home setups or specialised bedroom furniture), an unfurnished rental provides the flexibility to accommodate these requirements without working around pre-existing furnishings.
  
• Potential Cost Savings: While there’s an initial investment in furniture and household items, unfurnished rentals typically have lower monthly rent compared to their furnished counterparts. Over an extended tenancy, this can result in significant savings. Additionally, tenants retain ownership of their furniture and household goods, which can be seen as an investment. These items can be moved to future homes or sold if no longer needed, potentially recouping some of the initial costs. For tenants who already own furniture, unfurnished rentals eliminate the need to pay for storage or sell existing items, further contributing to cost savings.

Benefits for Landlords of Unfurnished Rentals

Offering an unfurnished property can be advantageous for landlords in several ways:

• Reduced Maintenance Responsibilities: One of the most significant benefits for landlords is the reduced maintenance burden. Without furniture and additional appliances to maintain, repair, or replace, the ongoing costs and time investment in property upkeep are generally lower. This reduction in responsibilities can be particularly beneficial for landlords managing multiple properties or those who prefer a more hands-off approach to property management.
  
• Long-Term Tenant Stability: Unfurnished properties often attract tenants looking for longer-term housing solutions. The investment in furnishing a rental space typically incentivises tenants to stay for extended periods, reducing turnover rates and associated costs (like marketing and vacancy periods). Longer tenancies can lead to more stable rental income and potentially stronger landlord-tenant relationships, as both parties have a vested interest in maintaining the property.

Considerations for Both Tenants and Landlords

When it comes to renting properties, both tenants and landlords need to carefully weigh the pros and cons of furnished versus unfurnished options. Let’s dive into some key considerations that affect both parties.

Initial Setup Costs and Moving Logistics

For tenants, the choice between furnished and unfurnished rentals can significantly impact their moving experience and wallet. Opting for an unfurnished property means facing potentially hefty upfront costs for furniture and household essentials. This initial investment can be a barrier for some, especially young professionals or students just starting out.

On the flip side, furnished rentals offer the convenience of moving in with just your personal belongings. This can be a game-changer for those relocating to a new city or country, saving both time and money on moving expenses. However, it’s worth noting that furnished apartments often command higher monthly rents to offset the landlord’s investment in furnishings.

For landlords, the decision to furnish a property involves careful financial planning. While it requires a significant upfront investment, it can potentially lead to higher rental income and attract a specific tenant demographic, such as corporate renters or short-term lease seekers.

Flexibility and Mobility

Tenants who value flexibility and the ability to move frequently may find furnished rentals more appealing. These properties allow for easier transitions between homes without the hassle of moving bulky furniture. This mobility is particularly attractive to digital nomads, contract workers, or anyone embracing a more transient lifestyle.

Conversely, tenants who prefer to create a personalised living space or already own furniture might lean towards unfurnished options. This allows them to bring their own style and comfort to the rental, potentially making it feel more like home.

For landlords, offering a furnished property can open up opportunities in the short-term rental market, such as vacation rentals or corporate housing. However, it may limit the pool of long-term tenants who prefer to use their own furnishings.

Understanding Tenant Rights

Tenant rights can vary significantly between furnished and unfurnished rentals, and it’s crucial for both parties to be aware of these differences. In some jurisdictions, tenants in furnished properties may have different protections regarding notice periods, rent increases, or eviction procedures.

For example, in the UK, tenants’ rights furnished or unfurnished properties can differ in terms of the landlord’s right to enter the property. Furnished properties may allow for more frequent inspections to check on the condition of the provided items.

Landlord Responsibilities

Landlords need to be clear about their responsibilities when it comes to maintaining and replacing furniture in furnished rentals. This includes understanding wear and tear expectations and budgeting for regular updates to keep the property attractive to potential tenants.

In unfurnished properties, landlord responsibilities typically focus more on structural elements and major appliances, potentially simplifying property management.

Legal RequirementsF

Both furnished and unfurnished rentals must meet certain legal standards for habitability. However, furnished properties may have additional requirements, such as ensuring all provided furniture meets fire safety regulations.

Seeking Professional Legal Advice

Given the complexities surrounding tenants’ rights and landlord responsibilities, it’s often wise for both parties to seek professional legal advice. This can help clarify obligations and rights, potentially preventing disputes down the line.

Read more: Guide for Renting Out a Property for the First Time

Additional Insights

What Does “Part-Furnished” Mean?

The term “part-furnished” can be confusing for both tenants and landlords. Typically, it refers to a property that includes some basic furniture items but not a complete set. This might include larger pieces like a bed, sofa, or dining table, but exclude smaller items like lamps or kitchenware.

The exact definition of part-furnished can vary, so it’s essential to get a detailed inventory of what’s included. This ambiguity highlights the importance of clear communication between landlords and tenants to avoid misunderstandings.

What Does Unfurnished Mean?

When we talk about what unfurnished means in the context of rental properties, it’s important to understand that it doesn’t equate to an empty shell. Typically, an unfurnished property includes:

1. Basic fixtures and fittings (e.g., light fixtures, built-in wardrobes)
2. Major kitchen appliances (usually a stove and sometimes a refrigerator)
3. Bathroom fixtures (toilet, sink, bathtub/shower)
4. Flooring (carpets, tiles, or hardwood)
5. Window treatments (often basic blinds or curtain rods)

Everything else – from furniture to kitchenware – is the tenant’s responsibility. This arrangement offers maximum flexibility for tenants to create their ideal living space but requires a significant upfront investment in furniture and household items.

Tenant Rights for Furnished vs. Unfurnished Rentals

Tenant rights can vary depending on whether a property is furnished or unfurnished. While the core rights remain the same (such as the right to a habitable living space), there can be nuances:

1. Inventory Checks: Furnished properties often require more detailed inventory checks at the beginning and end of tenancy.
   
2. Wear and Tear: Expectations for normal wear and tear may differ between furnished and unfurnished properties.
   
3. Maintenance Responsibilities: In furnished rentals, landlords may have additional responsibilities for maintaining and replacing furniture.
   
4. Notice Periods: Some jurisdictions have different notice period requirements for furnished and unfurnished properties.

Conclusion

In conclusion, choosing between furnished and unfurnished properties can significantly impact both tenants and landlords. At Westport Property in Dundee, we understand the nuances of each option and how they align with different needs and lifestyles. Whether you’re a tenant seeking immediate comfort and convenience or a landlord looking to maximise your rental income, making an informed decision is key. By considering the specific advantages and challenges of each type of rental, you can better navigate the rental market and find the perfect fit for your situation. For personalised advice and assistance, our team at Westport Property is here to help you every step of the way.