When it comes to furnished vs unfurnished rental properties, landlords face an important choice that can affect everything from rental income to tenant turnover rates.

Deciding whether to offer a property fully furnished, completely unfurnished, or somewhere in between is not only about appealing to prospective tenants, but also about weighing up long-term costs, potential vacancies, and property maintenance.

While furnished rentals can attract tenants seeking convenience and short-term leases, unfurnished rentals often appeal to long-term renters looking to personalise a home. Choosing between the two options can feel like a balancing act, as each has its own pros and cons that may suit some landlord goals and tenant types better than others.

From addressing the question, should I rent furnished or unfurnished to exploring how to meet the unique demands of different tenant demographics, this guide will study everything landlords need to know.

We will:

• Dive into the benefits and drawbacks of each rental type
• Examine what’s included in each option – furnished or unfurnished
• Look at important considerations including insurance, wear and tear, safety and compliance and property inspections

We’ll also highlight how flexible approaches and alternatives like part-furnished rentals can work in your favour.

Furnished vs unfurnished rentals: the differences explained

When deciding between furnished vs unfurnished rental options, it is essential to understand exactly what each entails.

A furnished rental generally includes everything a tenant needs to move in and live comfortably, while an unfurnished rental is often limited to the basics.

What’s included in furnished rentals?

A furnished rental usually comes equipped with essential furniture and appliances, allowing tenants to settle in without the hassle of buying or transporting items. Typically, this includes:

• Living room furniture such as sofas, coffee tables, and sometimes even rugs or lamps
• Bedroom furniture, including beds, wardrobes, and bedside tables
• Dining area furniture, like dining tables and chairs
• Kitchen appliances, from washing machines, fridges and ovens to smaller items like microwaves and kettles in some cases
• Basic kitchenware, including dishes, glasses, and utensils (in some furnished rentals)

Many landlords also add a few decorative touches, such as artwork or cushions, to create a homey feel, especially in more competitive rental markets. However, the exact contents of a furnished rental can vary, so it is important to specify what you will be providing in the tenancy agreement.

What’s included in unfurnished rentals?

An unfurnished rental offers the basics, giving tenants a blank canvas to make the space their own. Typically, this includes:

• Kitchen essentials like an oven and hob, and sometimes a fridge
• Bathroom fittings such as shower curtains and toilet roll holders
• Basic fixtures like carpets, curtains, or blinds

Unfurnished properties often appeal to long-term renters who prefer to bring their own furniture, offering them the freedom to personalise the space and create a home that feels uniquely theirs.

Should I rent furnished or unfurnished – which is best for landlords?

The choice between a furnished vs unfurnished rental largely depends on the type of tenant you aim to attract, the rental market in your area, and the property’s location and condition.

Each option comes with its own set of benefits and considerations for landlords, so let’s break down the scenarios where one may be more advantageous than the other.

Tenant type and turnover

Furnished rentals: These are typically more appealing to short-term renters, such as students, corporate professionals on temporary assignments, or people between moves. Furnished lets can command higher rent, but landlords should be prepared for more frequent tenant turnover.

Unfurnished rentals: Unfurnished properties attract long-term tenants who often wish to create a more personalised home, which can lead to greater tenancy stability. For landlords, this can mean fewer re-letting costs, reduced vacancy periods, and a consistent rental income stream over time.

Location and market demand

City centre properties: Urban areas and city centres often attract a transient workforce. Furnished rentals here may hold an advantage, especially where demand is high for ready-to-move-in spaces. Tenants in these locations may value convenience over customisation, making a furnished rental more attractive.

Suburban or residential areas: In more residential areas, where tenants are often families or long-term renters, unfurnished rentals tend to be more popular. These tenants may already have their own furniture, and landlords may find that the demand for unfurnished properties in these areas outweighs the benefits of furnishing.

Costs and maintenance

Initial outlay and replacement costs: Furnishing a property requires an initial investment, and items may need replacing due to wear and tear, resulting in ongoing maintenance costs. Landlords opting to furnish their properties should budget for periodic replacements and repairs to keep the property appealing to new tenants.

Lower costs with unfurnished rentals: Letting a property unfurnished reduces the landlord’s initial expenditure and limits maintenance responsibilities. Without the need to replace or repair furnishings, landlords may find their ongoing expenses are lower, making it a potentially more profitable choice in the long term.

Rental income and premium pricing

Higher rents for furnished properties: Furnished rentals can command higher monthly rents, appealing to tenants willing to pay a premium for convenience. For properties in high-demand areas, this may be worth the additional management and maintenance.

Consistent income with unfurnished properties: Unfurnished rentals may not fetch the same premium, but the longer tenancy durations often associated with them can offset this by reducing vacancy rates and letting costs. For landlords looking for consistent income without the added upkeep, unfurnished properties can sometimes be a safer choice.

In short, the choice between a furnished vs unfurnished rental depends on your goals as a landlord and the specific demands of your target market.

Furnished properties can bring higher returns in the right areas, but require ongoing investment and maintenance. Unfurnished rentals, on the other hand, often foster longer tenancies and incur lower upkeep costs, making them an appealing option for those prioritising stability.

By considering your ideal tenant profile, property location, and budget for furnishings, you can make an informed choice that aligns with your individual rental strategy.

The pros and cons of furnished rentals vs unfurnished rentals

Both options bring their own benefits for landlord. Let’s explore each of them.

The benefits of letting unfurnished

Opting for an unfurnished rental can bring several advantages for landlords, particularly those seeking longer-term, stable tenancies.

Attracts long-term tenants: Unfurnished rentals are generally favoured by tenants who plan to settle for an extended period, such as families and professionals. Since they bring their own furniture, tenants are more likely to stay longer, creating fewer turnover costs and less frequent vacancy periods for landlords.

Lower maintenance and replacement costs: Without the need to supply or maintain furniture, landlords face fewer maintenance responsibilities and reduced costs over time. Unfurnished properties often demand less time and money for upkeep compared to furnished ones, as landlords are responsible only for the general condition of the property itself, rather than additional items that may suffer wear and tear.

Greater tenant responsibility: When tenants furnish a property themselves, they are usually more invested in maintaining its condition. This helps reduce damage risk and gives tenants a greater sense of responsibility and pride in the space.

Flexibility for future upgrades: Renting unfurnished gives landlords more leeway to upgrade the property itself rather than focusing on replacing worn furniture. Investing in quality flooring or updated kitchen fixtures can provide better returns in terms of attracting quality tenants and boosting rental appeal in the long run.

What is the ideal tenant profile for unfurnished properties?

Unfurnished rentals often suit tenants looking for a “blank canvas” that they can personalise. Families, couples, and professionals who may already have a full set of furniture tend to be drawn to unfurnished rentals, seeing them as an opportunity to create a long-term home.

The benefits of letting furnished

While unfurnished rentals appeal to many, furnished rentals offer a distinct set of advantages for landlords, especially when the target tenant profile is more transient or looking for added convenience.

Higher rent potential: One of the most compelling reasons to offer a furnished rental is the potential for higher rent. Tenants are often willing to pay a premium for the convenience of a ready-to-move-in property, especially in markets where people are looking for short-term accommodation, such as students or young professionals.

Attracting short-term and international tenants: Furnished properties are particularly appealing to tenants who are relocating for a short period, such as business professionals, students, or those temporarily working in a city. These tenants are less likely to bring their own furniture and would prefer a fully furnished space, making them an ideal candidate for furnished rentals.

Faster tenant turnover: Furnished properties tend to be rented out more quickly compared to unfurnished ones, especially in areas with high demand for short-term lets. This can help landlords minimise vacancy periods and maintain a steady stream of income.

Convenience for tenants: Many tenants, especially those new to an area or who have limited furniture, find furnished properties convenient. Moving into a home that already has essential furniture can significantly reduce the stress and costs associated with relocating, making it more attractive to certain groups, such as students, professionals, or young couples.

More control over property condition: Furnishing a property gives landlords greater control over the quality and style of furniture and appliances. In the event that items become damaged or need replacing, landlords can manage the quality and condition, ensuring the property is kept in good shape. Plus, it allows landlords to curate a cohesive aesthetic, which could increase its appeal.

What is the ideal tenant profile for furnished properties?

Furnished properties often appeal to individuals or groups who may not have their own furniture or don’t plan on staying for an extended period. This includes young professionals, students, or temporary workers, and often attracts tenants moving from other areas or countries.

Are there any other options apart from furnished or unfurnished rentals?

While furnished vs unfurnished rental properties are the two most common choices for landlords, there’s also the part furnished option, which is an attractive middle ground for both landlords and tenants.

Part furnished properties are those that come with some basic furniture and appliances, but not everything is provided.

What does part furnished include?

A part furnished rental typically includes essential items like a bed, sofa, or kitchen appliances such as a fridge, oven, and microwave.

However, it may exclude items like curtains, lamps, or additional furniture pieces like side tables or wardrobes.

What are the benefits of part furnished lets?

Flexibility for tenants: Part furnished lets provide tenants with the flexibility to bring in their own personal furniture, allowing them to customise the space without having to bear the full cost of furnishing it themselves. This appeals to people who have some furniture but prefer not to invest in large items like a bed or sofa.

Lower initial costs for landlords: For landlords, part furnished lets mean lower upfront costs, as they won’t need to purchase a full set of furniture. Instead, they can focus on the essentials that increase the functionality of the space, like a bed or essential kitchen appliances.

Appeal to a broader range of tenants: Part furnished properties can attract tenants who have specific tastes or those who are transitioning between furnished and unfurnished spaces. This could include young professionals who have some furniture but want a head start with essential items already in place, or people moving to a new location with limited furniture.

Potential for less wear and tear: Because tenants are likely to bring their own furniture, the landlord’s furniture is exposed to less wear and tear. This could potentially save landlords money in maintenance and replacement costs over time, especially if the property is rented out frequently.

What are the downsides of part furnished lets?

More work for tenants: While offering flexibility, part furnished properties still require tenants to furnish a significant portion of the space. This may be inconvenient or a barrier to some tenants, particularly those who are short on time, budget, or in need of a completely move-in-ready home.

Potentially lower rent than fully furnished: Because part furnished properties do not come with the full array of furniture and appliances, landlords might not be able to charge as high a rent compared to a fully furnished property. However, they could still ask for a premium compared to unfurnished spaces.

Increased risk of damaged or misplaced items: If tenants are expected to bring their own furniture, there is a risk of things being damaged, either by the tenant or due to moving in and out. Landlords may need to carry out more frequent mid-term inspections to ensure the property’s condition is maintained.

When is part furnished ideal for landlords?

A part furnished rental can be the best of both worlds for landlords looking to reduce their upfront costs while still providing some added value to tenants.

It’s particularly appealing in areas where demand for rental properties is strong, but tenants are more likely to bring their own items, such as in university towns or cities with a high proportion of young professionals.

Important considerations for furnished and unfurnished rentals

When deciding whether to let your property as furnished vs unfurnished rental, there are several key factors you’ll need to take into account to ensure that the property remains in good condition, is legally compliant, and is appealing to the right tenants.

Insurance

Insurance is a crucial consideration for any landlord, and whether you’re letting a furnished or unfurnished rental, the right coverage is essential.

For furnished properties, landlords should ensure their insurance covers the value of all provided furnishings. In case of accidental damage, fire, or theft, having adequate contents insurance will prevent unnecessary financial losses.

If you’re renting out an unfurnished property, you won’t need to worry about insuring furniture as this will be the tenants’ responsibility. You will, however, still need a solid building insurance policy to cover the structure of the property.

Inventory and check-in report

Regardless of whether you’re offering a furnished or unfurnished rental, documenting the property’s condition at the time of letting is essential.

Both an inventory and check-in report are necessary to officially document what’s included in the rental, and the condition it’s in when the tenant moves in.

The inventory will include a detailed list of all the furniture, appliances, and other items provided in the rental. For unfurnished properties, the inventory will mainly list fixtures and fittings, such as carpets, light fittings, and built-in appliances.

The check-in report is an important document that can be referred to at the end of the tenancy. It records the condition of the property and any existing damage, so if there’s any dispute regarding the return of the tenant’s deposit, this report serves as proof of the initial condition.

Regular mid-term inspections

Regular inspections throughout the tenancy are important to ensure the property, particularly any provided furnishings, remain in good condition. Mid-term inspections allow landlords to address issues early, such as worn-out furniture or tenant misuse of appliances.

In furnished rentals, furniture and appliances are more likely to experience wear and tear, particularly with tenants moving in and out frequently. By carrying out inspections every few months, landlords can identify when repairs or replacements are needed.

In unfurnished rentals, while there’s less furniture to inspect, landlords still need to check for signs of tenant neglect and general maintenance issues, and ensure the property is being properly cared for.

Tenant expectations and communication

Clear communication with tenants is essential, particularly when offering furnished or unfurnished rentals. Setting expectations from the outset will help avoid misunderstandings and ensure the property remains in good condition.

In furnished rentals, tenants will expect all the provided furnishings to be in good working order, clean, and well-maintained. Landlords should be clear on what’s included in the property, and it’s wise to provide an itemised list within the tenancy agreement.

In unfurnished lets, tenants might assume more flexibility, but landlords should still provide clear guidelines on what’s included (i.e., any built-in appliances) and ensure they understand their responsibility for furnishing the rest of the space.

Legal compliance and safety

For all rental properties, ensuring compliance with safety regulations is critical, and this includes both furnished and unfurnished rentals.

If you’re renting a furnished property, the furniture must meet UK safety standards. This includes regulations around fire safety, such as ensuring all upholstered furniture is fire resistant and bears the necessary labels.

Landlords must also ensure that all gas appliances are checked annually by a Gas Safe registered engineer, and that electrical appliances and cables have been inspected and tested by a qualified professional every five years. This applies regardless of whether the property is furnished or not.

Wear and tear expectations

Whether your property is furnished or unfurnished, tenants will cause some degree of wear and tear over time. However, the expectations around what constitutes acceptable wear and tear versus damage can differ.

Furnished rentals: With furnished properties, there’s a higher likelihood of wear and tear on furniture, appliances, and other items provided. Landlords should factor in the potential for damage and budget accordingly for repairs or replacements.

Unfurnished rentals: While there’s less to wear out in an unfurnished rental, landlords should still be prepared for regular maintenance, particularly in high-traffic areas like kitchens and bathrooms.

The importance of being flexible

When it comes to letting either a furnished or unfurnished rental, being flexible can make a difference in attracting the right tenants. Depending on location and market demand, flexibility in what you offer could appeal to a broader range of tenants.

Offering a part-furnishedproperty for example could help bridge the gap between furnished vs unfurnished rentals, giving tenants the freedom to bring their own belongings while still benefiting from key items like white goods and wardrobes.

Being able to adapt to tenant demand could mean you’re more likely to secure longer-term tenants and reduce void periods.

Furnished vs unfurnished rental: it’s all about managing risk

Deciding whether to let your property furnished vs unfurnished involves numerous considerations, from insurance and inventories to tenant expectations and legal compliance.

While both furnished and unfurnished rentals come with their own set of benefits and challenges, one key factor remains consistent: managing the risk associated with renting out property.

As landlords balance the pros and cons of furnished vs unfurnished rental, many are turning to guaranteed rent schemes to mitigate potential issues, regardless of the type of property they let.

Whether you’re dealing with tenants likely to leave the property in less-than-perfect condition, the added complexities of furnished furniture wear and tear, or simply the need for financial security in an unpredictable market, guaranteed rent offers peace of mind.

Guaranteed rent – your go-to solution in turbulent buy-to-let times

Guaranteed rent provides landlords with the certainty of receiving rent payments on time, every time, regardless of whether the tenant pays. This can be particularly reassuring in the current market, where issues such as rent arrears, void periods, and tenant defaults are more prevalent than ever.

When it comes to furnished rentals, where potential for damage to furniture and appliances is higher, guaranteed rent can provide an additional safety net by ensuring landlords continue to receive their expected income even if a tenant damages the property or fails to pay rent.

Similarly, unfurnished rentals, while often considered less risky in terms of wear and tear, still carry the potential for long void periods between tenants. Guaranteed rent ensures landlords don’t have to worry about gaps in income, making it an ideal solution for landlords seeking a hassle-free letting experience, no matter the type of rental they choose to offer.

In summary, no matter whether you choose to opt for a furnished vs unfurnished rental, guaranteed rent can provide the security and stability landlords need in today’s rental landscape. By offering a steady income stream, removing the worry of late or missed rent payments, and reducing the financial risk associated with tenant issues, guaranteed rent is an investment in both peace of mind and the long-term success of your rental business.

To discover more about our landlord rent guarantee scheme request your free rental valuation, you are welcome to get in touch.