Furnished vs unfurnished for rental properties: A guide for landlords
‘Should I rent a furnished or unfurnished property?’ is a question every tenant will ask themselves before looking for their next home, but what’s best for you as a landlord?
In this guide, our private rented sector experts explore the considerations that affect you and your tenants when renting furnished or unfurnished to help you decide which option is right for you.
Check out our other resources for managing your tenancy effectively.
What is an unfurnished rental property?
If you’ve ever asked yourself, ‘What does unfurnished mean?’ you’re not alone. As there is no legal definition, it’s open to interpretation, but it generally means a property where the landlord does not provide any free-standing furniture. It’s important to remember that tenants will expect a minimum level of goods in the house, even in unfurnished properties.
What does a landlord need to provide in an unfurnished property?
Unfurnished does not mean you can let a completely bare property. At a minimum, you should include:
- Carpets and other flooring
- White goods, e.g., a cooker, fridge, freezer and washing machine
- Kitchen and bathroom fixtures
- Any non-free-standing furniture, such as built-in wardrobes
- Curtains/blinds, or at a minimum, the means of installing them
- Smoke and carbon monoxide alarms
What are the advantages of unfurnished rentals?
- Lower maintenance and repair costs
- Less hassle between tenancies to check wear and tear
- Easier inventory process
- Less responsibility – you’re not liable for replacements
- More likely to attract longer-term tenants
- Requires a lower initial investment
What are the disadvantages of unfurnished rentals?
- Lower monthly rental price
- Less attractive to certain rental types, e.g., students or short-term renters
Who are unfurnished rentals suited for?
Renting furnished or unfurnished is not a hard question for some tenants. Those who already have their own furniture are often unwilling to part with it if at all possible. These tend to be families, older people, or those looking for longer-term rentals where they can make the space feel like a home.
What is a furnished rental property?
Think of a furnished property as a ready-made home that tenants can move straight into. Each landlord will have their own interpretation of what furnished means, as there is no agreed upon legal definition of ‘furnished’. As a general rule, fill your rental property with anything a tenant might require to live comfortably, including all essential furniture and appliances needed for immediate living. A tenant will generally expect that a furnished property will only require them to bring their own personal belongings with them.
What does tenant furnished mean?
Tenant furnished is simply another way of saying furnished, and all of the same principles apply.
What does part furnished mean?
Think of this as the middle-ground between furnished and unfurnished, with part furnished meaning you’ll provide some, but not all, furniture. Your tenant may have a few items they want to bring with them, but don’t have some essentials that you are willing to provide, such as a bed or a sofa. In these scenarios, you’ll provide everything a tenant would expect in an unfurnished property, but not a full suite of furniture as you would in a furnished rental. It is important to be clear on any advertising material about what exactly will be provided.
What does a landlord have to provide in a furnished property?
The full list of items to include is ultimately your decision, but as a minimum, you should provide the following, on top of the already discussed expectations for what should go into an unfurnished property:
- Beds/mattresses
- Sofa/armchairs
- Dining table/chairs (if room)
- Wardrobes/chest of drawers
- Everything you’d find in an unfurnished property (see list below)
You may also wish to provide extras, such as coffee tables, shelves, kettles, crockery, etc., to improve the rental experience for your tenants. Ensure these are in good condition.
What are the advantages of furnished rentals?
- Higher rental income
- Faster placement of tenants
- Attractive to short-term occupants, students, and young professionals
- Replacing old items is tax-deductible
What are the disadvantages of furnished rentals?
- Initial outlay for furniture
- Higher tenant turnover likely
- Responsible for repairing or replacing furniture
- More complex inventory process
- Reduced council tax relief during vacant periods
- Less attractive to renters who have their own furniture
- More comprehensive landlord insurance needed
Who are furnished rentals suited for?
When asking yourself, ‘Should I let my house furnished or unfurnished?’, it’s important to consider who your ideal tenants are. Furnished rentals are more attractive to tenants looking for short-term or city-centre lets, overseas tenants, students, and young professionals looking to live close to work.
Furnished vs unfurnished rentals: A comparison
Is it better to let property furnished or unfurnished? Both options have pros and cons, and what’s best for you will depend on your goals, circumstances, and personal preferences. We’ve provided a quick comparison between letting a furnished vs unfurnished rental below.
How we can help you
We understand that deciding whether you should let your house furnished or unfurnished is just one of many decisions you’ll have to make as a landlord. Our members have access to a suite of resources and guides, and specialist telephone advice from our private rented sector experts for when these questions, and others, arise.
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Furnished vs unfurnished rental FAQs
What does white goods included mean?
The term ‘white goods included’ means that a landlord will supply all essential household appliances required for day-to-day living in the rental property, including fridge, freezer, oven, and washing machine.
Can landlords charge extra rent for a furnished property?
Yes, you can generally charge a higher rent for furnished properties to reflect the added value of the furniture and white goods provided, and the cost savings passed to tenants by not having to furnish the property themselves. Its important to always try to rent your property close to the market rent, especially since the introduction of the Renters’ Rights Act and the changes to the rent tribunal. You can read more about that here on our guidance page.
Are there any legal obligations for landlords letting furnished or unfurnished properties?
Whether furnished or unfurnished, by law you must ensure the property is fit for human habitation, and that you adhere to gas, fire and electrical safety standards. You must also ensure that any electrical goods are PAT tested regularly and that all furniture displays the requisite fire-safety credentials.
How will the Renters’ Rights Bill impact unfurnished properties?
The ‘Decent Homes Standard’ proposed in the Renters' Rights Bill will require landlords to provide ‘reasonable facilities and services’, which could affect what landlords must include as a minimum in unfurnished properties. Specific requirements and implementation timelines are yet to be announced.
How do tenancy agreements differentiate between furnished and unfurnished properties?
A tenancy agreement will look similar for a tenant looking to rent furnished or unfurnished, with the added specification of who is responsible for looking after the furnishings. You may also wish to stipulate more regular property inspections in the agreement if letting a furnished property.
What are the safety standards applicable to both furnished and unfurnished properties?
Regardless of whether your tenants are renting furnished or unfurnished, you have the same obligations to uphold safety standards. These include ensuring the home is fit for human habitation, and that you adhere to gas, fire and electrical safety standards. If providing furniture, it must meet the fire-resistant requirements in the Furniture and Furnishings (Fire) (Safety) Regulations 1998.
What are the tax implications of letting a furnished vs unfurnished property?
Letting a furnished rental property can affect council tax discounts if your property is unoccupied, potentially resulting in a 50% discount rather than the full 100% you’d receive for an unfurnished property. A percentage of the cost to replace old items is also tax-deductible in a furnished property.