Should Central London Landlords Rent Furnished or Unfurnished Property? 

Deciding whether to rent a property with or without furniture will influence the type of tenant you attract and how much rental yield you can achieve. However, there are other factors to consider when providing a fully furnished property, such as start-up costs, maintenance and safety standards to comply with. 

If you are wondering whether to rent your property in areas such as Marylebone and Pimlico with or without furniture, these are highly desirable places for professionals working in the city. These types of tenants will often prefer furnished property, as they may be living there for a short term before buying their own property.  

However, if you have a three-bedroom property in the family-friendly borough of Bromley, you may want to attract tenants who are families looking for a long-term rental close to good schools. They are likely to have their own furniture that they will want to bring to the property. 

The type of property and the ideal tenant you want to attract should determine whether you want to rent your property as furnished or unfurnished and this guide will help you to decide. 

Should I Rent Furnished Or Unfurnished In Central London? 

Before you make your decision, do some area research to get a better understanding of the types of tenants that typically live in the area and in similar properties to yours. A one-bedroom apartment in Soho will be ideal for young professionals who want to be close to the amenities in central London. They will usually expect luxury furnishings in their rental property.  

Central London properties that are not as modern, could suit students who will need furnished accommodation while studying. 

If you have a larger property in Chislehurst, this will be attractive to families looking for excellent schools and to experience the close-knit community feel of the area. Renting this type of property as unfurnished will enable families to make the home feel like their own and they will usually already have furniture. 

You will also have to decide whether the potential higher rent of providing a furnished rental will be worth the extra work and costs that come with repairing and replacing items. 

Furnished vs. Unfurnished Rental Property Differences 

As well as renting furnished or unfurnished property, there is also the option to part furnish the property. Here’s an overview of what is typically included for each option: 

Furnished 

A fully furnished property will include all the main furniture items that tenants will require to live comfortably in the property, including beds, sofa, dining table and white goods in the kitchen. 

Some furnished properties also include items such as a TV, curtains, blinds, cutlery and tableware, small kitchen appliances, iron and vacuum cleaner. 

Part furnished 

Renting the property out as part furnished may be more suitable if a tenant wants to bring some of their own items. Another reason you might rent as part furnished is when a previous tenant has left some items in the property or you leave some of your own items in the property after moving out. 

Typically, part furnished properties will include: 

• Fridge freezer 
• Cooker 
• Washing machine 
• Table 

There is no fixed definition of what part furnished includes, so it can be as flexible as you want it to be and can be guided by discussions with prospective tenants to meet their needs. Some might want to bring their own beds and wardrobes but need additional types of furniture to be provided. 

Unfurnished 

Typically, an unfurnished property will be rented completely empty except for fixtures and fittings and any built-in furniture. Carpets and flooring will be included and sometimes white goods such as a cooker and fridge freezer. 

What Items And Appliances Should I Include? 

As long as you itemise everything in the inventory, you can decide what you want to include in a furnished or unfurnished property. However, tenants will generally expect the following to be included: 

Furnished property 

• Beds 
• Cooker 
• Sofa 
• Tables and chairs 
• Wardrobes and chest of drawers 
• Light fittings and window coverings 
• White goods such as fridge freezer, washing machine, dishwasher etc. 
• Smoke and carbon monoxide alarms 

Unfurnished property 

• Carpets/flooring 
• Safety features such as smoke and carbon monoxide alarms 
• Window coverings 
• Essential white goods such as a cooker 

Furnished Rental Property Pros And Cons 

To get a better idea of which type of rental option will best suit you in terms of finances and amount of work involved, here are some of the main pros and cons of furnished and unfurnished rentals to consider: 

Advantages of furnished rentals 

• Potential for higher rental income – You can usually charge around 20-30% more rent for furnished properties. 
• Attract your target tenants – If you are trying to attract relocating professionals or students, furnished properties will likely attract these tenant types. 
• Smoother moving in process – When tenants don’t need to move furniture from their current home to your property, they may be able to move in earlier. 
• Tax deductions – Furniture depreciation for wear and tear can usually be claimed as tax relief. 
• An easier sale – If you choose to sell your rental property eventually, it is easier to do so with the property unfurnished.

Disadvantages of furnished rentals 

• Initial costs of buying furniture – If you are starting with no furniture, the outlay for all furniture and appliances could be very expensive. 
• More likely to attract short-term tenants – Furnished properties tend to be favoured by professionals and students who take short-term rentals, so there’s more risk of void periods and more work involved in finding new tenants. 
• Costs of replacing furniture – If furniture gets damaged or there is wear and tear over time, you will need to pay to repair or replace items. This can often be a source of landlord and tenant conflict.
• Increased fire and electrical safety responsibilities – You will need to ensure furniture is fire safe and electrical appliances should be regularly checked.  

Unfurnished Rental Pros And Cons 

Advantages of unfurnished rentals 

• No capital required for upfront furniture purchases – You could save thousands of pounds in furniture costs. 
• Less maintenance – You won’t have to keep paying to repair or replace furniture. 
• Attract long-term tenants – If tenants are bringing their own furniture, they are more likely to prefer long-term rentals, so there will be less turnover. 
• Faster moving in/moving out – The inventory checklist will be smaller, and tenants won’t need to arrange furniture removals. 

Disadvantages of unfurnished rentals 

• Lower rental income – You won’t be able to charge as much rent if the property is unfurnished. 
• May be less appealing to tenants – If the property is completely empty, it may not feel homely when prospective tenants view it. 
• Less tax relief – You won’t be able to claim tax relief for furniture depreciation. 

If you are renting out property in Paddington, Victoria or Notting Hill, this guide should help you to decide whether renting out furnished or unfurnished is more suitable depending on your property type and preferred tenant type. However, you should also calculate the difference between paying for upfront furniture costs and the additional rental income you could earn.  

If you require any help with marketing and finding tenants in central London, get in touch and we’ll be happy to help.