Could Landlords Get More Rental Income for Furnished Property?
House owners are constantly thinking about how they can make more money from their property.
If you are thinking of putting tenants in the home, you might be asking whether a furnished house will allow you to extract more from your renters.
Many tenants see a property that is already furnished as a real plus point.
These are advantages for renters that make sense.
A renter who moves from property to property over time does not want the hassle of having to move sofas, beds, white goods and chests of drawers every time they up sticks.
The advantages of renters are clear.
But are there advantages for landlords in this arrangement too? Absolutely.
But there are pitfalls too. Wear and tear on sofas, white goods and carpets are accelerated by tenants as they know that long term it is not going to be them who has to replace it.
Introduction to Furnished and Fully Furnished Property
Most house owners that have gone into the buy-to-let market will have homes that are completely unfurnished.
To begin with, the advantages for landlords is that they can choose what type of tenant to open up a negotiation with.
A tenancy can be either short-term or longer.
Short term tenancies tend to be holiday cottages or short stay rentals.
This is where the occupants would expect to bring a suitcase and discover that everything is there waiting for renters to enjoy.
Beds, sofas, white goods, linen, cutlery and even a television.
A completely fully furnished home ready for your tenants.
Short-term rentals are usually properties where the tenants only stay 30 days or less.
Long term can be six months or more. Although long term home rentals don’t come fully furnished, there are instances where they can.
What Does it Cost to Furnished a Property?
You should be looking at paying around £2,000 for furnishing a one-bedroom flat and £5,000 for a three-bedroom home.
You may want to go upmarket and buy expensive furniture but this needs to be offset and charged to the tenants once the agreements have been drawn up.
Typically, a furnished property can bring in around 20 per cent extra income from renters than a property with no furniture at all.
We estimate that it would take around 20 months to break even and start making a profit if the property is a one-bedroom apartment.