If you are looking to rent out your furnished property, you need to know a few important things before doing so. There are no rules about whether or not you should let out your house or flat as furnished or unfurnished - it is completely your own choice and preference.
Letting your furnished property can attract a higher rent and a different type of tenant, as well as improve the chances of finding a tenant quickly, although it all depends on the area. Furnished properties often suit city dwelling more than larger suburban and country housing, and are more suited to young professionals or those in transition who do not want to start buying and collecting furniture of their own. Established individuals and families often have, and prefer, their own furnishings.
The positive aspects of renting a furnished property are:
• It saves money for the tenants.
• Depending on the area, it can attract more tenants.
• The cost of the furniture and appliances supplied can be tax-deductable against the rental income.
• There is less chance of damage to walls and floors if each new tenant does not need to move their own furniture at the start and end of each tenancy.
• Prospective new tenants will better be able to visualise themselves in the property, during viewings, if furniture is in place already.
There are different levels of furnished properties, so a part-furnished property let may suit your budget and tenants better. It all depend whether you want to supply only hard furnishings, or electrical appliances and smaller items as well, such as crockery, cooking utensils, cutlery, etc.
You are not legally required to have contents insurance, but it is advisable. Theoretically all damages and losses can come out of the tenant's deposit, but a larger extent of damage may occur so that the deposit may not entirely be able to cover the losses. In case of fire, flood, theft or anything that is not the tenant's fault, loss of furniture cannot be covered by the deposit and contents insurance will be invaluable in these circumstances.
Note that you cannot charge tenants for losses over time due to normal and acceptable levels of natural wear and tear. If you rent out your property with furniture, you may find yourself needing to replace certain items over time as part and parcel of your responsibilities as a landlord.
In terms of safety, all furniture and appliances should comply with certain standards and be safe for domestic use. Your local letting agents can help you know what needs to be achieved in this regard. Portable appliances need to pass a Portable Appliance Test (PAT), which is not legally required, but highly recommended to avoid legal and moral issues further down the line in case of electrical fires and mishaps.
It is best to consult your local Newport letting agent to determine if better rental and tenants can be had in your area, if you were to rent out your property as furnished, part-furnished or not furnished.
To learn more about how to rent property in Newport, contact Newport letting agents+ Luscombe & Co. They provide a high standard of professional property management in Newport, South Wales.