Furnished versus unfurnished?

by Readers Question

9:09 AM, 14th July 2014
About 4 years ago

Furnished versus unfurnished?

Make Text Bigger
Furnished versus unfurnished?

What are the advantages / disadvantages of furnished or unfurnished buy to let? Furnished versus unfurnished

We have just sold our furnished buy to let and are considering reinvesting the money (what is left after CGT!) in a new buy to let in an area nearer home.

We were initially a student let, which meant we provided everything, but drifted out of that which lead to our furniture often being stored in the garage!

We are probably going to buy in an area without a Uni. this time.

Advice as to the different legal situation and the advantages disadvantages of both for a very small landlord please.

The property will be our pension.

Thanks

Mrs V Kennedy



Comments

Mark Alexander

9:34 AM, 14th July 2014
About 4 years ago

Hello Mrs Kennedy and welcome to Property118

Most tenants have their own furniture. If you rent furnished then expect people to ask you to store some or all of it, especially beds as most people like to have their own.

There are some exception to this including; holiday lets, serviced apartments, HMO's, student properties and properties which appeal to contractors who work away from home during the week.

I tend to let part furnished, i.e. I provide window coverings (usually high quality wooden blinds), floor coverings, white goods, light fittings and bathroom fittings. I find that this is generally what most tenants want. With regards to floor coverings I try to make these "tenant proof". If you take a look at what Travel Lodge do in their bathrooms, I've copied them. The linolium flooring is sealed and extends up the walls by a few inches. This massively reduces risks of water damage to floors and ceilings below. The carpets I use are fely backed, bleach cleanable polypropelene in a cappucino colour. They are relatively cheap but very hard wearing carpets which match everything an, don't show stains and are easy to keep clean. They stand the test of time. For added comfort and sound proofing I have them laid over high quality underlay. I also use linoleum in hallways and WC's. I generally have kitchens and dining areas tiled.

If you let fully furnished then you can offset 10% of your rental income towards wear and tear for tax purposes. Given that most furniture looks shabby before 10 years (especially as people are less inclined to look after another persons as they would their own) I would find this is a false economy on the type and value of properties that I let, especially when I factor in the hassle factor associated with people wanting me to store furniture they don't want.

If you do furnish your property then you must ensure that any furniture you put in is marked up as being fire safety compliant.

I hope that helps.

George Sandy

14:13 PM, 14th July 2014
About 4 years ago

Can't the CGT be rolled over if re-investing in the same type of business?

Mark Alexander

15:19 PM, 14th July 2014
About 4 years ago

Reply to the comment left by "George Sandy" at "14/07/2014 - 14:13":

Not in the case of residential property.
.

Jireh Homes

19:43 PM, 14th July 2014
About 4 years ago

Hi Mrs V Kennedy, to part or full furnish depends on the local market demand and the type of property. In our area (Aberdeen) bulk of 1 & 2 bedroom properties are let fully furnished, whilst once you consider 4 bedroom and above then unfurnished is more an option. Suggest you talk with your local letting agents. Fully furnishing a property requires greater investment (which can be done with a mix of new and the likes of Gumtree), but gain slighly more on rent. The 10% Wear & Tear allowance will significantly contribute to replacement of most furnishings if this is needed with time.

Mervin SX

13:25 PM, 21st July 2014
About 4 years ago

I agree with Jireh. The market demand tends to drive either way - i.e. fully or part furnished. And the 10% wear & tear allowance against taxable income will certainly contribute to replacing most furnishing.

In my case, I have fully-furnished some of my apartments and because of this, I achieve a premium rent compared to the local market (with no vacancies between tenancies).

Hope this helps...

Michael Swallow

14:52 PM, 21st July 2014
About 4 years ago

HI Mrs Kennedy

When I ran a letting agents in London I always advised landlords to let unfurnished as I found if you got a tenant in who had there own furniture they would look after the place more like it was there own and tend to stay longer.

This would still be my advise if tenants with furniture are looking to let in your area


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

And the landlord vote goes to - ?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More