Furnished or Unfurnished - Which is Better to Let?
Category Advice
Although there is no direct answer to whether it's better to rent out your property furnished or unfurnished, the decision will affect the type of tenants you attract.
Letting furnished property
Smaller flats or apartments generally do best when furnished as they appeal to students and young professionals.
When renting, a large portion of the market is young and aren't in a position to buy. Therefore, there may be more demand for furnished properties.
Rent will be higher on a furnished property, so if you already have furniture, appliances or decor available for use, it could be a worthwhile financial investment to go this route.
To add to the benefits, you can deduct a percentage of the furniture expenses from your tax liability. These expenses include the cost of the replacement asset, as well as the disposal of the old asset.
Keep in mind that there is always the risk of damage to your items during a tenant's stay, so we advise not to leave any sentimental or invaluable assets on your property that can't be replaced.
Letting unfurnished property
It is more common for landlords with larger property to let unfurnished, as tenants are generally older and have their own furniture. It is also more likely for this market to look for a pet-friendly home, in which case you don't want to risk damage to your furniture.
This option attracts tenants who are looking to make a long-term move, as moving in with furniture is time-consuming and costly.
Renting unfurnished also means you won't be responsible for any wear and tear on assets. If you are unwilling to pay insurance on your property contents, renting unfurnished is the better option. You are not legally obliged to have insurance on your rented furniture, but it is advised! Keep in mind that if your property changes from owner-occupied to rented, you must confirm it with your insurance company for any claims to be valid.
If you have property you're considering renting out and need some guidance going forward, SAproperty.com will get you where you want to be!
Author: SApropety.com
