Furnishing for landlords: common do’s and don’ts

Is it more advantageous to let an investment property in a furnished or an unfurnished state? Answering correctly is essential in terms of achieving the highest rental yields, appealing to your desired market sector and ensuring your property is let on a continual basis. While it is not possible to give a single definitive answer, an analysis of the fundamental factors that must be taken into account can be provided. The overview of common considerations set out below will help you determine the best course of action.

Is it more advantageous to let an investment property in a furnished or an unfurnished state? Answering correctly is essential in terms of achieving the highest rental yields, appealing to your desired market sector and ensuring your property is let on a continual basis. While it is not possible to give a single definitive answer, an analysis of the fundamental factors that must be taken into account can be provided. The overview of common considerations set out below will help you determine the best course of action.

Do consider your market carefully

Central to the choice of whether or not to furnish a buy-to-let property is the sector of the rental market you aim to attract as tenants.

For HMOs or flats intended as student accommodation, a fairly comprehensive level of furnishing is almost guaranteed to be required. Students tend to inhabit premises on a short-term contract for nine to twelve months. In most cases, it is their first time living away from home and accordingly they will rarely bring with them furniture or appliances of their own. Furnishing in student “digs” should be kept basic and functional.

Corporate lets aimed at professionals working on short-term contracts must be furnished both comprehensively and comfortably – with a definite touch of class. Corporate tenants typically wish to expend as little time, money and energy as possible setting themselves up in a property. They want to walk into a ready-made home, with everything from a corkscrew to bath towels often expected.

Properties with a target tenancy of young professionals need to be modern, functional and well maintained. Furnishings beyond kitchen appliances, lighting and curtains are rarely deemed desirable as this group will be looking to invest in furniture of their own. Means and needs of young professional tenants differ widely, so showing a property partially furnished but giving the option of a choice of extra furnishings is an excellent way to attract tenants and establish a good relationship from the outset.

As a rule, families and mature professional tenants will have their own furniture. Any level of furnishing beyond quality appliances is likely to turn these tenants away.

Don’t lose sight of what you are trying to achieve

The amount required to furnish an apartment can range from £10,000 for a luxury corporate let to under £500 for basic student digs. Whilst the optimum level of furnishing can give rise to better rental yields, overspending on furnishings will mean that you do not see any benefit. Consider how easily furnishings can be maintained and replaced as tatty furnishings can bring the rental price down to a level lower than would be achieved if the property was unfurnished.

Don’t play interior designer

Choose neutral colours and designs. It is important to avoid the temptation to furnish and decorate a property in a distinctive style. What you consider the height of good taste may be deplored by a potential tenant.

Furnishing is a must in some cases, and optional or discouraged in others. It is essential to get it right. Take time to research the needs and expectations of your chosen market, as well as the potential costs and benefits associated with furnishing; the right decisions will be crucial to the success of your investment.