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  • Buy-to-Let

    Letting property - furnished or unfurnished?




    Can you get a higher yield if you let property which is furnished as opposed to unfurnished?

    My concerns with furnished property are that there is more for tenants to break, what do you do with furniture if someone wants the property unfurnished and if furnished council tax is 100% when vacant!!!

    However, if yields are significantly higher it's worth it?

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    Yields are no different

    But if you don't have furnishings you might struggle to let.

    Regard furnishings as a marketing expense

    It all depends on the tenant demographic

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    Hi Nick,

    We have had this discussion a number of times on Property Tribes.

    Here is one of the more recent ones:

    Furnished vs Unfurnished

    If you put "furnish" into the search box you will find them all.

    My belief and experience is that unfurnished is the way to go.

    A tenant that walks in with a bed and sofa on his back is a lot likely to stay longer and want to put down roots than a tenant that walks in with only a suitcase.

    You can advertise your property as available as furnished or unfurnished and see which tenants apply.  If you get several that want it unfurnished, then select from them.  However, you may get a tenant that asks for a bed (for instance), and then you can take a view on that.

    Personally, I don't think offering a property as furnished increases the rent by anything more than a few per cent.  Then, if the next tenant does not want the furniture, you either have to dispose of it or put it into storage.

    So, a furnished property produces more hassles than an unfurnished one.  To me, the choice is clear.  Unfurnished every time. Smile

    Hope that helps?

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    With the LHA market it makes no difference to yield so I never furnish as its extra cost / hassle / liability 

    With my better quality homes I still dont for the same reasons

    It puts some tenants off as they have all their own stuff acquired in life and dont want to get rid or store it

    Sometimes I feel LL `s furnish unnecessarily

    Its  more for their own desire to create what they perceive to be a finished product

    A blank canvas to some is wonderful  - To others its an empty soulless space

    I like blank myself

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    Jonathan Clarke. http://www.buytoletmk.com


    Nick

    My belief is that it depends on where the property is. If all the similar properties around yours are furnished, you are going to struggle if unfurnished. Also in some areas it appears you can get a premium for furnished over unfurnished. I also think that when prospective tenants view the property, furnished sells the property over unfurnished.

    There is a way to do some research. David Philips Furniture, London (largest landlord furniture supplier in UK) did some research ( David Philips Furniture Index) by postcode and compared volume of furnished v unfurnished, rates for both and whether there was a furnished premium. This research used to be on their website but you may have to phone them and ask for it for a particular postcode.

    My day job is working for a direct lender who provides 100% finance to landlords for furniture and white goods, but I am also a landlord so this sort of data is quite useful to me.

    B rgds

    Andrew Southwood

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    Furnished- just buy quality furniture-I’ve has no problem with any furniture. touch wood.

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    we never furnish, we never provide white goods. If you do provide it is just more things to go wrong and attend to. if the tenant brings/buys there own it means more commited to long term rental in my opinion. We do not struggle renting property's.

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    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724

    Nick - CT on empty homes is 150% of basic rate from day one - irrespective of being furnished or not

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