Furnished or Unfurnished: Which Is Better for Letting?

As a landlord, one of the key decisions you’ll face is whether to rent out your property furnished or unfurnished. It’s a choice that can have a significant impact on your rental income, the type of tenants you attract, and the long-term upkeep of your property. Both options have their pros and cons, and which is best for you depends on your target tenants and financial goals.

At Buchanan Residential, we’re here to guide you through this decision, helping you maximise your rental investment. Let’s break down the benefits of each option from both a landlord and tenant perspective.

What Does Furnished Mean?

A furnished property means that the home is equipped with all the necessary furniture and appliances for tenants to move in and live comfortably from day one. This typically includes essentials like beds, sofas, dining tables, and kitchen appliances. The goal is to make the property move-in ready, saving tenants the hassle and expense of buying furniture themselves.

Furnished vs. Unfurnished: What’s the Difference?

Benefits of Letting a Furnished Property

1. Appeals to Short-Term Renters
   Furnished properties tend to attract short-term tenants, such as professionals on temporary work placements or students. These renters often look for a home they can move into immediately without the need to furnish it themselves.
2. Higher Rental Income
   furnished properties can command higher rent, as tenants are paying for the convenience of a fully equipped home. Depending on the location and the quality of the furniture, this could make a noticeable difference in your rental income.
3. Higher Demand in Certain Markets
   In areas popular with students, young professionals, or expats, there is often higher demand for furnished rentals. These tenants prefer the ease and flexibility of a furnished home, making it easier to find renters quickly.
4. Reusable Furnishings
   The furniture you provide can be reused across multiple tenancies, reducing the need for constant re-investment. As long as the furniture is well-maintained, it can be a cost-effective option in the long term.

Benefits of Letting an Unfurnished Property

1. Lower Upfront Costs
   Renting an unfurnished property involves far less initial investment, as you won’t need to purchase furniture or appliances. This can be especially appealing to landlords who are just starting out or those looking to minimise upfront expenses.
2. Less Wear and Tear
   Without furniture to maintain, you won’t have to worry about the wear and tear that comes with tenants using your items. This can save you from having to replace or repair furniture between tenancies, ultimately lowering your ongoing costs.
3. Attracts Long-Term Tenants
   Unfurnished properties are often more appealing to long-term tenants, such as families or professionals who already own their furniture and want a place to call home for an extended period. These tenants are more likely to stay in the property longer, reducing turnover and the associated costs.
4. Fewer Responsibilities
   With an unfurnished property, you won’t have to handle issues related to the maintenance or insurance of furniture and appliances. Tenants will be responsible for the care of their own furnishings, which can simplify property management for you.

What About Tenants?

Benefits of Renting a Furnished Property for Tenants

• No Need to Buy Furniture: Moving into a furnished property saves tenants the expense and hassle of purchasing their own furniture, making it an attractive option for those who don’t want to make a long-term commitment.
• Move-in Ready: Tenants can move in immediately without having to wait for furniture deliveries or installations.
• Short-Term Flexibility: Furnished properties are ideal for tenants looking to rent for short durations, as they don’t need to invest in furnishing a temporary home.

Benefits of Renting an Unfurnished Property for Tenants

• Personalisation: Renting an unfurnished property allows tenants to personalise their space with their own furniture, giving them a greater sense of home.
• Long-Term Savings: Unfurnished properties often come with lower rent and can be a more affordable option for long-term tenants. Plus, tenants can take their own furniture with them when they move, making it a more economical choice.
• Less Responsibility for Damages: Tenants won’t be liable for damage to the landlord’s furniture, which can help protect their deposit.

How to Decide?

When deciding whether to let your property furnished or unfurnished, consider your target market. In areas with a high turnover of tenants, such as city centres or near universities, furnished properties might be more appealing. If your property is located in a suburban area where families or professionals are more likely to settle for longer periods, an unfurnished option could attract long-term tenants.

At Buchanan Residential, we can help you assess the local market and understand what tenants in your area are looking for. Whether you opt for furnished or unfurnished, we’ll provide expert advice to ensure you get the most out of your investment.

Need Help?

Still unsure whether to furnish your rental property? Buchanan Residential offers expert guidance on all aspects of property letting. We can help you make an informed decision based on your property type, location, and target tenant. Contact us today for personalised advice and to explore our full range of landlord services.

Buchanan Residential—Helping landlords succeed, one property at a time.