8th
Sep 2014
A major national estate and lettings agency's results from their Monthly Lettings Index, advises all landlords that they will achieve higher rents if their properties are furnished.
Their statistics suggest that throughout the UK, furnished flats will be able to yield a rental premium of 8.1%.
Within the monthly report, it is hardly surprising to see that the younger age group want a full solution and are happy to pay higher rents for properties that furnished. Students of course prefer to be able to move into shared houses or flats that are fully furnished.
Providing a furnished flat that yields an 8.1% means, on average, an extra monthly income of £52.40. In premium areas of high income earners where demand is high, the rental premium will be higher and can command as much as a third more than unfurnished flats in the same district.
Those landlords who rent out furnished houses can achieve a 2.8% rental premium which equates to an extra £14.90 per month.
Bournemouth, Eastbourne and other seaside towns yield extremely profitable returns for those properties that are furnished. Mature renters, much prefer these types of locations for their "Golden Years" and many want properties that they can move straight into, without having to acquire furniture.
However rural areas and those which are outside the regions of city centres, tenants usually prefer the unfurnished option especially in country setting. These renters will be more likely to be older families with children, who have their own furniture.
The index also highlighted that there has been a modest growth in the rental sector and that average monthly UK rents are approximately £898.
Commercial Director of the company, Nick Dunning, said: ‘Whether you are a first-time landlord or a seasoned investor it is important to understand what tenants are looking for. This not only helps to minimise void periods but also assists in achieving the highest return from the rental property.’
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