Hi all, I am in the process of buying a property to rent out, it is a one bedroom ground floor flat with parking and separate kitchen and bathroom i.e. 4 rooms. I am considering renting it furnished which I assume demands a premium.
For comparison there are a few other one bedroom flats in the area that are lounge with kitchen and a shower room built within the bedroom i.e. 2 rooms, without parking that are being rented unfurnished.
What would an additional rental fee be for furnished be? Also would the additional space available in the flat be deemed a justification for a higher rental price?
Depends on the quality of goods you buy. Remember if white goods are used and abused you will have to repair or replace them
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IMHO furnished doesn’t command a premium. It is more to attract a certain demographic. Stylish city centre apartments to attract busy professionals moving to the area for work. Unless your property is in the right area for that demographic I would go with unfurnished.
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What makes you think that you can actually let furnished in your area? What will you do if a good applicant comes along and says, “Hmm… would it be possible to move my own furniture in?”
I have alerts set to flag rental properties in the areas we let in. This gives me a constant trickle of information to help me know what prices are doing and what demand is. You might consider that as you complete the sale and get ready to let.
Is this your first let?
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Yes, first let. Reviewing others in the area I feel that the bare and smaller properties aren’t appealing.
Thanks for info, the white goods are integrated.
I wish will consider this. Thanks
Apart from when applicants give you bad vibes, feelings shouldn’t really play a part in letting property. Bare to you is blank canvas to them and they’ll be used to looking at lots of bare properties as they hunt for somewhere to live. As long as the property is decorated decently and clean, that’s all that matters.
Practically, the majority of people looking for residential letting have their own stuff. They want a bare property to make their own and hey want to bring their stuff with them. Integrated white goods may mean they’re forced to sell their own white goods in order to move into yours so could make the place less appealling to them, for example.
If integrated make it very clear in the AST whose responsibility repair and/or replacement of those white goods are. I only have one property with integrated white goods and that was because I bought it like that. The AST says repair and replacement is the responsibility of the tenant. I don’t want to get involved in that.
If it’s your first let, make sure you know the full implications of the RRB and I’d highly recommend joining a LL association and doing their training.
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Hi @FerndaleRentalProper
I had same choice. I think it’s about whom you are aiming for and what level of maintenance you want. Don’t think there’s a premium but check local listings
People with no furniture at all moving to a new city will appreciate not having to buy stuff so eg students or those with less savings or lower income. But you then have to replace anything which breaks and they may take less care of than their own possessions or may be asked to remove it.
People who have been renting longer or who want to make a place their own may have more furniture and prefer an empty space
You might want to part furnish instead and/or a select number of appliances so less bare. Eg I bought a brand new matching toaster/kettle for the kitchen and a new vacuum and flashmop kit (to encourage them to keep clean). For listing photos and viewings I added some candles and plants and other touches to ‘dress’ the place to help people visualise
Bigger flats def get higher rents but location and condition matter too.
Good luck!
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I bought a 2 bed apartment in February 2023. It was a modern apartment tastefully decorated (mostly IKEA) and the vendors offered the furniture which I accepted to market as part-time furnished. Unbeknown to me at the time was that when empty the Council Tax was charged at a premium ( double if my memory serves me correctly) for properties that had beds. They were classed as second homes. Anyway, the tenants I chose didn’t want the beds so I got rid of them.. I am not sure if that Council Tax rule still applies but it is worth checking it out before you decide.
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