Landlord decisions Furnished or Unfurnished Rentals Accurate Credit Bureau

Many landlords are unsure of the difference between renting out a furnished and unfurnished home.
Experienced landlords know the answer is simple – a tenant only has to walk in to a furnished home with their personal belongings and linen to rent their home.
An unfurnished home generally comes with carpets, curtains and white goods – like a fridge, stove, and washing machine and dryer.
Renting furnished or unfurnished depends on the property and the target tenant market.
Here are some points a landlord needs to consider when furnishing a buy to let property:

Furnished Rentals
Attract younger tenants who may not have their own furniture
The moving in process is quicker
Landlords can set off wear-and-tear on furniture against rent
A furnished home attracts a higher rant than a similar unfurnished home
Landlords must comply with fire safety regulations
Landlords must pay for replacing furniture that’s past the sell-by date
If the tenant doesn’t want some or all of the furniture, the landlord must arrange storage

Unfurnished Rentals
Tenants who make a house a home with their own furniture may stay longer
No replacement or repairs are needed at the landlord’s cost
Rents are lower for unfurnished homes
Landlords cannot set of any wear-and-tear allowances against rental profits
Landlords renting furnished property can set off 10% of the value of the furnishings supplied against rents every year – even if the property is making a loss.
However, landlords cannot claim the cost of providing the furniture as a business expense – only wear-and-tear, which is a tax relief for depreciation.
Whether a property is furnished or unfurnished also effects tax in some areas.

Providing furniture also depends on a landlord’s target market – students and young professionals expect furnished lets, but couples and families often prefer to rent an unfurnished home. For more information on tenant screening and Landlord services see Accurate Credit Bureau.

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