It pays to furnish rental properties but only in some areas
For landlords or BTL property investors, there is a decision to be made when renting out the property: furnished or unfurnished?
There is an additional outlay and responsibility for landlords providing furnished, or part-furnished, properties for rent. But with increased demand for shorter-term rentals, there are some locations where it really pays to offer furnished properties for rent.
Recent research has shown it costs on average £1,666 for a landlord to furnish a one-bed property and in some locations the difference in average rental income for furnished vs unfurnished is significant.
Landlords in London can make nearly £7,000 per month more if they furnish their property vs renting out unfurnished. In Bristol, landlords make per month £683 more by furnishing their property which would cover the cost of furnishing a one-bed property in 2.5 months.
However, in Bournemouth the average rent of furnished (£1,098) vs unfurnished (£1,094) is only £4 more. And in multiple locations, unfurnished properties receive more rental income on average per month when compared to furnished properties.
So for all BTL investors or new landlords considering whether to furnish your property or not, it pays to do your research to understand the location, the renters' demand, the competition and the profit you can make.
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