The number of properties let part or fully furnished across England and Wales is increasing, accounting for 31% of properties let over the past year, up 3% year on year.
The proportion of properties let furnished has increased in all regions of England and Wales, except for Yorkshire and the Humber, which has seen a slight decrease from a year ago.
The amount of apartments let furnished remains over twice that of houses. The North West saw the highest number of properties let fully furnished outside of London, with 35% of properties presented as fully tenant ready.
63% of these North West properties are apartments, whilst the remaining 18% of furnished properties are divided between detached, semi-detached and terrace houses.
On average, furnished apartments are typically renting for an additional £78 per month; equating to just under £940 more per year. This offers 11% premium over the unfurnished lets. Based on an estimated cost of £2,000 – £2,500 to functionally furnish a two-bedroom apartment, for those renting it would take two to three years to re-coup the cost of self-furnishing.
The next fact to consider however is whether tenants wish to rent properties that are furnished or totally blank. The positive for you as a landlord or property investor is that typically, furnished properties prove to be more attractive and are likely to minimise your void periods over unfurnished properties. The upfront costs are of course a consideration, but the increasing demand for furnished properties can aid to mitigate this quicker.
Unfurnished properties are more attractive for those looking for a blank canvas to start afresh with, particularly the ideal template properties for family homes. If tenants have been renting prior in an unfurnished property, they will have inevitably purchased their own furniture and will want to bring it with them.
The middle ground for this?
Some landlords (although not an overwhelming amount) offer the option for properties to be let furnished or unfurnished. This method allows you to offer the prospective tenant exactly what they’re looking for; broadening the potential reach of interest in your property, whilst also allowing you to consider the premium rental rate beforehand in the event of letting your property furnished.
HMOs on the other hand are different to the typical apartment/house let when it comes to furniture. House shares are ideally tailored for working professionals who want to rent hassle free, with bills included into the rent and also the furniture. As the competition for HMOs continues to rise, the need to angle your HMO from a unique, stylish and appealing perspective to attract tenants is crucial.
If you’re unsure whether you should be looking to let your property furnished or unfurnished, as well as how best to present your property in order to attract tenants, we can help. Give us a call on 0161 883 2525 and we can help you to swiftly position and let your property; powering your profits and returning control of your time.