Choosing whether to rent out a furnished or unfurnished property is an important decision for any landlord. Even if you choose unfurnished, you should still provide certain essential items.
Recent research reveals many tenants prefer to move straight into a furnished property, without the additional expense and hassle of buying and transporting their own furniture. It opens up your property to a wider audience of tenants such as company lets, first-time renters and students
What furniture should be included?
Even in an unfurnished property, the majority of tenants will expect appliances such as a cooker, a washing machine and a fridge-freezer. The landlord should also provide light fittings for ceiling and wall lights, blinds and carpets, or other floor coverings.
A landlord is under no legal obligation to furnish a property. However, if furniture is provided, they must ensure it conforms to the mandatory fire-resistant standards. Each piece of fabric furniture, including settees and armchairs, must carry a label to prove they meet this legal standard.
The Furniture and Furnishings (Fire Safety) Regulations 1988, 1993 and 2010 govern the standard of furniture and soft furnishings UK-wide, in England, Wales, Scotland and Northern Ireland. In Scotland, the General Product Safety Regulations 2005 also cover furniture standards.
When you’re advertising a furnished property, the amount of furniture you provide depends on the size of the home. If you’re renting out a three-bedroom property to two tenants, it’s still expected that you will furnish the third bedroom!
Furnished lets should include the items already listed for unfurnished properties plus a bed, mattress, wardrobe and chest of drawers in each bedroom. You should supply a sofa with washable, loose covers in the living room, plus a dining table and chairs. Many landlords will provide a TV on a stand in the living room.
Should a landlord provide accessories?
Again, it isn’t mandatory to provide any accessories, but many landlords will do so anyway, to make the property more attractive to potential tenants. A mirror fixed to the wall is a common accessory, for example.
Lamps and side tables come down to personal taste. Some landlords will provide them, while others believe the tenants prefer to bring their own. The landlord can also provide small electrical appliances such as a vacuum cleaner, toaster or kettle.
As a landlord, if you provide electrical appliances that might pose a fire risk, they must be safety-tested regularly.
If your property has a garden, a table and chairs can be a welcome addition, as can a washing line to encourage tenants to dry laundry outdoors in fine weather – thus reducing condensation indoors.
What about insurance?
As a landlord, you’re required by law to have building insurance. While contents insurance isn’t a legal requirement, it’s a good idea to take it out if you’re supplying a furnished property.
According to UK insurance company data, the most common reason for a claim is for water damage caused by a leak. On average, this causes £252 worth of damage to the landlord’s furniture, fixtures and fittings. The other main causes of damage to landlords’ contents include flood damage from storms and accidental damage.
Although the exact details of each policy will vary, depending on the individual insurer, the standard cover will normally include damaged furniture such as sofas, beds and cabinets; major kitchen appliances such as the cooker and sink; carpets; curtains and light fixtures.
Insurance should also cover outbuildings, such as garden sheds, plus any furniture in the garden. If you’re renting out to multiple tenants in an HMO, your contents insurance should cover communal areas.
If the tenants have brought in any of their own furniture, the landlord isn’t responsible and the tenants must take out their own contents cover for such items.
While the landlord is responsible for replacing items that have become unusable due to general wear and tear, if a tenant trashes the property, the landlord should not suffer a financial loss. Landlord policies can be taken out to cover damage to furniture caused by a tenant, including malicious damage and accidental damage.
However, the deposit protection scheme is designed to protect the landlord’s investment, as well as the tenant’s deposit. The key lies in the tenancy agreement. The landlord must ensure their expectations and the tenants’ responsibilities are clearly spelt out in the agreement.
In the event of any damage by the tenants, this will be the cornerstone of any arguments regarding deposits or compensation. While you can’t govern your tenants’ lifestyle choices, such as outlawing high-risk activities like parties, you can write into the agreement that the tenant must maintain the property, keeping it in the same condition as at the beginning of the tenancy, wear and tear aside.
Using furniture pack suppliers
Many landlords who need to furnish a rental property from scratch choose to use a professional landlord furniture pack supplier. This can save time, hassle and money, as they can deliver a coordinated set of furniture to fulfil your properties’ needs.
You could end up paying less than if you had to source all the furniture yourself from different suppliers. It also means no messing about with flat-pack furniture, as it will all be assembled for you when it’s delivered.
Careful planning and preparation, together with an understanding of what’s required by your tenants and by law, can take the hassle out of providing a furnished property and help to make your investment worthwhile.