As a landlord , investing in furnishing for rental properties could mean spending a bit more initially , however  generally speaking you can typically expect to receive more in rent for a furnished place, according to research from OnTheMarket.com (OTM).

The data gathered uses average monthly rental prices based on two-bedroom flats across nine major UK cities, to determine the average difference in cost between renting a furnished or an unfurnished property. The findings show that landlords renting out a two-bedroom furnished property can achieve up to 21% more per month in rent than renting an unfurnished property of the same size in the same area.

The data gathered uses average monthly rental prices based on two-bedroom flats across nine major UK cities, to determine the average difference in cost between renting a furnished or an unfurnished property.

The study found that renting a two-bedroom furnished property in the city of Sheffield costs tenants an average of £726 compared to £598 for an unfurnished property of the same size, which is a 21% increase in price – more than anywhere else in the UK.

In London (£128 more – a 9% difference), Newcastle upon Tyne the difference is £85 more – a 14% difference, Birmingham (£127 more – a 20% difference), Sheffield (£128 more – a 21% difference), Manchester (£101 more – a 15% difference), London (£128 more – a 9% difference), Leeds (£128 more – a 19% difference), Glasgow (£86 more – 13% more), Coventry (£102 more – 15% more) and Cardiff (£50 more – 7%).

The research suggests that landlords could benefit from calculating the cost of furniture prior to making a decision whether the initial financial outlay can be off-set over time during the rental period.

 Positives about furnishing a property include:

  • It saves tenants money, since they don’t need to buy furniture
  • You may let the property more quickly than an unfurnished property, because (generally) there are more tenants looking for furnished lettings
  • When the tenancy ends, you will still own the furniture and can use it yourself. Or offer it to future tenants
  • You can deduct a percentage of the cost of the goods from your tax liability. Deductible expenses include both the cost of the replacement item and costs of disposal of the old item.

A third option is to let a property part-furnished, which is a term completely open to your interpretation.