Furnished or Unfurnished
Renting whether for reasons of economic necessity or preference has become a lifestyle choice. Some people acquire possessions others do not. Be understanding and flexible.The decision to furnish in part or completely and what such includes or not, must be taken in context of the following:-
Council Tax Where the property is unfurnished and empty [Rent Void] the Landlord can claim Council Tax relief. If part or furnished, you are liable to pay council tax.
Supply of White Goods If you supply fridges, freezers, washing machines, TVs etc you are responsible for all the maintenance of those goods. Many tenancy agreements try to pass such obligation onto the tenant, such clauses are unenforceable
Target Audience
Student accommodation or properties let out to companies should always be offered furnished, Mobile Workers AND HMO type properties and properties desirable to younger persons are likely to be furnished.
Those targeting families - Part or unfurnished.
Much depends on local competition and demand. If you are unsure of the needs of your local market then make enquiries. If you are refurbishing a property, being unfurnished allows flexibility. Furniture can be sourced and fitted at short notice. Some companies provide staging furniture services.
Allowing the Tenant to bring in their own furniture does have its advantages, it can:
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Encourage a sense of belonging and ownership so the tenant is more likely to look after the property
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Less wear and tear and depreciation
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Lower capital outlay for the Landlords
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Fewer compliance issues ensuring you comply with software furnishings act etc
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Simplifies preparation of the inventory as there are fewer things to account for
On the downside
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The Tenant must comply with furnishing fire regulations
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Electrical goods must be sound for 30% of fires start due to electrical items
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Some Tenants request to bring their own cookers such items are not recommended for they put your property at risk [for you do not know the history of such items]. Qualified tradesmen MUST always install such items and you MUST approve such work
TAX Furnished properties
Special rules apply to furnished properties where, technically, the cost of providing furniture and fittings is a capital expenditure and therefore not an allowable expense. However, the Inland Revenue offers Landlords two options to offset such expenses for this type of property. The first and most popular option is permitting the Landlord to deduct a 10% wear and tear allowance, calculated on the rent net of any council tax or rates. Alternatively, you may deduct the full cost of replacing items on an ‘as you go’ basis as and when it is necessary. It is important to remember that the original outlay for furniture and fittings is not allowable – only replacements for damaged or worn out items. In addition, once you have chosen one option for offsetting this expenditure then you are not allowed to change to the other whenever it suits best.