Published: 06/02/2024
Furnished vs. Unfurnished Lettings: Pros and Cons for Landlords in Central LondonAs a central London landlord, one of the key decisions you'll need to make when letting your property is whether to offer it furnished or unfurnished. Each option has its own advantages and challenges, and your choice will often depend on your target audience, location, and long-term goals.
In this blog, we'll explore the pros and cons of both furnished and unfurnished properties, specifically focusing on areas like Shoreditch, Old Street, Hoxton, Hackney, Bankside, and Southwark. Asindependent estate agents in Central London, Circa London Sales & Lettings is here to help you navigate these important decisions.
Unfurnished Rental Properties: What Does 'Unfurnished' Really Mean?
An unfurnished property typically includes the basics that make the space livable but lacks additional furnishings. As a landlord, you should expect to provide:
- Kitchen Fixtures and Fittings: Sink, counters, cupboards, and workspaces.
- White Goods: Cooker, microwave, fridge/freezer, dishwasher, washing machine.
- Bathroom Fixtures: Toilet, sink, and shower or bath.
- Soft Furnishings: Carpets, curtains, and blinds.
Pros of Letting an Unfurnished Property
- Lower Set-Up Costs: As a landlord, you won't need to invest in furniture, which can be an expensive upfront cost.
- Tenant Responsibility: Tenants are responsible for insuring their contents, managing furniture, and replacing damaged items.
- Less Cleaning Between Tenancies: Without furniture, cleaning between tenancies can be more straightforward and less time-consuming.
- Attracting the Right Tenants: An unfurnished property may not appeal to students, upwardly mobile professionals, or corporate tenants who prefer a property that is ready to move into immediately. If your target market is in areas like London Bridge or Tower Hill, offering a fully furnished property may be more appealing to young professionals.
- Longer Voids: The property might take longer to let, especially in high-demand areas where tenants expect a fully equipped, hassle-free living space.
A furnished property includes everything a tenant needs to live comfortably, and this may include:
- Furniture: Sofa, armchairs, dining table and chairs, wardrobes, chest of drawers, bedside tables, and lamps.
- Kitchen Items: Pots, pans, and kitchen utensils.
- Bedroom Items: Beds and bedding.
- Extras for Luxury Rentals: Chinaware, glassware, cutlery, towels, and bed linens.
- Higher Rental Income: Furnished properties often command higher rents, particularly in trendy areas like Hoxton, Hackney, or Bankside, where professionals and corporate tenants seek a hassle-free move-in.
- Quick Lettings: With the right demand, furnished properties can let much faster, reducing void periods.
- Tax-Deductible Costs: Certain costs associated with furnishing the property—such as replacing worn items—are tax-deductible.
- Ideal for Specific Audiences: Furnished properties tend to attract professionals, corporate tenants, students, and overseas renters, who may be looking for a ready-to-move-in option.
- Wear and Tear: Furniture and furnishings are subject to wear and tear over time, so they will need replacing. However, this is also tax-deductible.
- Landlord's Responsibility for Insurance: As the landlord, you are responsible for insuring the furniture and fixtures.
- Inventory Costs: The inventory check-in and check-out is your responsibility, and you may face additional costs when dealing with damaged furnishings.
- Storage Costs: If tenants have their own furniture, you may incur storage costs for the items you have in place.
- Legal Compliance: All furniture must meet fire safety regulations, and electrical appliances must pass Portable Appliance Testing (PAT).
At Circa London Sales & Lettings, we understand that outfitting a central London rental property can be costly and time-consuming. That's why we partner with trusted furniture package providers to offer a range of solutions for all budgets. This flexible service allows landlords to choose a package, have the furniture delivered and installed at the start of the tenancy, and remove it at the end of the lease. Payments can be spread throughout the tenancy, avoiding significant upfront costs. Whether you're in Southwark, Bankside, or another central London location, furniture packages allow you to offer a fully furnished home without the hefty investment.
Making the Right Choice for Your Rental Property
Ultimately, the decision between furnished and unfurnished will depend on your specific property, location, and the type of tenants you aim to attract. Areas like Shoreditch and Old Street may have higher demand for furnished apartments, while properties in quieter residential areas may do well with an unfurnished offering, especially for families or long-term renters.
Home staging and furniture packages with Circa London Sales & Lettings
At Circa London Sales & Lettings, we help clients maximise returns on their rental properties through home staging. Staging attracts more viewings and leads to faster sales or lettings, often at higher prices. We work with top designers to create stylish, move-in ready spaces, with furniture packages delivered within 48 hours. Our service covers studio to 3-bed apartments, including installations for kitchens, bathrooms, and electricals. Whether furnished or unfurnished, we offer tailored advice to make your property stand out in Central London’s competitive market.
By making the right choice between furnished or unfurnished, you'll be able to cater to the needs of your tenants while maximising the potential of your rental property in some of the most sought-after areas in Central London.
