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To Furnish or not to Furnish your Buy-to-Let Property?

To furnish, not to furnish or to part furnish your rental property is your decision as a landlord. Whichever course of action you decide upon will bring its own benefits and drawbacks.

By: Simon Macsis
Category: Business
: Real Estate
Posted: Mar 04, 2010
Updated: Mar 04, 2010
Views: 47


Whether the level of rent you can charge is affected depends on the type of tenant you wish to attract. For some tenants an unfurnished property, which can be furnished to the tenants' style and taste, could be a much more attractive option than making do with the landlord's style and selection of furniture.

???Did you Know???

There is no legal definition of a furnished, unfurnished or part-furnished property.

Considerations for landlords

Furnished

1. You are likely to attract tenants who are in a hurry and want to move in immediately.

2. Void periods between tenants are likely to be shorter.

3. You may be able to claim a wear and tear tax allowance against your rental income.

4. You might be entitled to claim the cost of replacing furniture.

5. You have the responsibility of ensuring that all furniture and furnishings comply with relevant legal rules and regulations, for example the Furniture and Furnishings Fire and Safety Regulations 1988 and 1993.

6. Lets may be shorter as tenants do not have to consider removal costs when moving house.

7. You will be responsible for insuring the contents.

8. There may be a possibility of claiming an 'unoccupied' council tax discount or exemption during void periods.

Unfurnished

1. Tenants are likely to stay for longer as they generally have to pay to transport their furniture.

2. Tenants can use their own furniture so may feel more at home in their own surroundings with their own style.

3. Tenants may be attracted to unfurnished property as they won't lose their deposit if they damage their own property.

4. You may be entitled to council tax discounts during void periods.

5. Tenants will be responsible for insuring their belongings.

6. You are not responsible for ensuring that the furniture complies with relevant legislation.

Part-furnished

1. A compromise - you can decide to provide as little or as much furniture as you wish.

2. This is a flexible option which may make it easier for you to attract tenants.


Whichever option you decide to go for, make sure that as a landlord you comply with your legal and insurance obligations, and encourage your tenants to take out contents insurance.


Find out more about landlord insurance from Direct Line for Business. View original article To Furnish or not to Furnish your Buy-to-Let Property?

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