Join CityClub Today to Receive:

  • Priority access to exclusive off market investments
  • Below market value pricing
  • Out of hours investor support chat
  • Allocated solicitor for hands free conveyancing

    What is the Difference?

    A furnished property is a property which is listed and rented with items included. Usually suited to tenants who are looking for a short to medium-term tenancy, from 6 months to 24 months. Therefore, these tenants are happier to pay some additional rent to get a property which is ready to live in, rather than investing in their own items.

    An unfurnished property is a property that is listed and rented almost entirely empty. These properties are perfect for tenants looking for a long-term tenancy, from 24 months and beyond. This allows the tenant to save a little additional money to build up their own collection of furniture and furnishings.

    What is Included?

    Unfurnished

    If a landlord decides to opt for an unfurnished rental property, there are still several things to consider. A tenant is unlikely to want to invest in the interior of a property that they do not own.  Therefore, the landlord will usually include the basics and is liable for the maintenance or repairs required. Usually, the tenants looking to rent an unfurnished property are willing to invest in larger items. This gives them the ability to build up their personal homeware collection.

    • White goods
    • Kitchen fixtures
    • Bathroom fixtures
    • Curtains or blinds

    Furnished

    When choosing a furnished property, there are often slight differences in what is included. Some landlords prefer to include only essential white goods and furniture. This is best for tenants who are looking to add a personal touch to their rental property. However, others will include furnishings, decorations, and additional kitchenware. This is typically the best option for tenants who are looking for a short to medium-term rental or have relocated for work, as they will not want to invest in additional homeware.

    Most furnished properties include the following:

    • Sofa
    • TV
    • Appliances
    • Wardrobe
    • Chest of drawers
    • Table/tableware
    • Bed
    • Mattress

    Pros & Cons of...

    Furnished Properties

    When letting out a furnished property, landlords can benefit from several factors. Firstly, they are able to obtain tenants much sooner, reducing vacancy times. Additionally, landlords are able to gain extra rental income. OnTheMarket reported that landlords can benefit from as much as 20% higher rental income with furnished properties. Finally, the tenants are less likely to damage the property, as usually property damage occurs during the moving-in or moving-out process.

    However, there are disadvantages to furnished property. Tenants who move into the property are usually expected to have shorter tenancy times. Also, the cost of buying the assets for the property can be a hefty fee for landlords. Furthermore, tenants are more likely to voice displeasure over the items if it does not fit their requirements. The landlord is liable for any wear and tear in the property, so repairs, maintenance or replacements could come at an additional cost.

    Unfurnished Properties

    Letting out unfurnished properties have many benefits to landlords. This includes longer tenancy times, as tenants are likely to stay put while obtaining their own furniture. As a result, the tenant will feel more ownership over the property. Furthermore, the landlord is not liable for any damage caused to the contents owned by the tenant. This saves landlords money long term as furniture will not need to be replaced or repaired.

    However, in exchange, the landlord is sacrificing the additional rental income they can gain from a furnished property. Furthermore, the landlord will still be liable for the maintenance of appliances and white goods, which are generally more expensive. Additionally, in some cases, the tenant could build a bad credit rating if purchasing the items on finance, which could lead to late payments. Vacant periods could also be longer, as tenants trend towards furnished properties.

    CityRise Verdict

    At CityRise, we believe there is no right answer for landlords, as both have advantages and disadvantages. We suggest that landlords take their time and decide what is more important to their investment strategy.

    • Furnished: Higher rents, shorter tenancy periods
    • Unfurnished: Lower rents, longer tenancy periods

    If a landlord would like to furnish their property, CityRise offers strong, stylish and durable furniture packs, here.

    Related Articles

    • Top Reasons to Invest in Property

      Top Reasons to Invest in Property

      One of the main ways to accumulate money is by investing. Property is one of the most popular investment choices for many reasons. Due to the...

      Learn more
    • Reasons to Invest in Huddersfield

      Reasons to Invest in Huddersfield

      Huddersfield is a rising town for buy-to-let investment, with the average property prices being more affordable and many selling points to tenants....

      Learn more
    • Buy-to-Let Opportunities with CityRise

      Buy-to-Let Opportunities with CityRise

        Buy-to-let (BTL) investing is becoming increasingly popular due to the amazing returns investors can see if they invest in the right...

      Learn more
    • Average UK Buy-to-Let Yield Jumps to 5.8%

      Average UK Buy-to-Let Yield Jumps to 5.8%

      Average UK Buy-to-Let Yield Jumps to 5.8% The average rental yield in the UK was 4.75%, however, it has now increased to 5.8%. This is due to the...

      Learn more

    Explore our Investment Guides

    Take a look
    Explore our Investment Guides
    Chat to us