Agency Check


 
 PROTECT YOUR MONEY. PROTECT YOUR HOME. KNOW YOUR AGENT.

Should you furnish your property?

BENEFITS OF FURNISHING YOUR PROPERTY

  • Increase the speed of your let as there are generally more tenants searching for furnished properties.
  • It saves your prospective tenants money.
  • You can deduct a percentage of the cost of the goods from your tax liability.
  • It is easier and faster to find a new tenant and the end of a previous let if left furnished.

BENEFITS OF LETTING YOUR PROPERTY UNFURNISHED

  • You do not have to worry about wear and tear or replacing any furniture.
  • Tenants who aim to buy and furnish the property themselves tend to be longer term tenants.
  • You save yourself from initial costs of having to furnish the property pre- tenancy.
  • Council Tax breaks/exemptions if your property is unoccupied and unfurnished this is known as a Class C exemption and in many cases gives you a 100% discount running for up to six months (varies from Council to Council).

BENEFITS OF LETTING YOUR PROPERTY PART-FURNISHED

  • There is no strict guideline as to what us considered as part-furnished. You can include everything except a bed or simply a bed and a few tables it is completely your choice.
  • You give your tenants and prospective tenants plenty of flexibility which can help in the process of letting your property quickly.

WHAT SHOULD BE INCLUDED IN THE PROPERTY REGARDLESS OF ABOVE CHOICE

  • White goods - Cooker/Fridge/Freezer/Washing Machine (where possible), curtains or blinds.

INSURANCE QUERIES

It is not a legal obligation to take out contents insurance on the furniture or other furnishings in a tenanted property although it is advised. A general common practice is to hire a third party inventory agent to carry out and document a checklist just before the tenancy starts (a copy may be supplied to the tenant upon request). When the tenancy ends the inventory agent will return to the property and carry out a check to see if the furniture and furnishings are still there.

SAFETY REGULATIONS

Many letting agents recommend that you carry out a Portable Appliance Test (PAT) this ensures that all of your electrical appliances are in good, safe and working order. This test is not a legal obligation but it gives your tenants and prospective tenants added assurance that precautionary measures to keeping them safe have been taken.

Furniture must comply with the current fire regulations and all furniture must have labels displaying this.

CONCLUSION

Many agents believe that by furnishing a property you can achieve a 5-10% higher rent. However, what is never initially taken into consideration is the costs during void periods and the costs later involved in wear and tear. We suggest that it would be best to Part Furnish your property as it allows for maximum flexibility and still allows room to aim for a higher rental.