Furnished vs Unfurnished: Which Is Better For Landlords And Tenants?

When it comes to rental properties, one of the biggest decisions for both landlords and tenants is whether to go furnished or unfurnished. Both options have their advantages and disadvantages, and the right choice depends on your specific circumstances and needs.

Let’s explore the differences and help you decide which option works best for you.

What’s the difference?

Before diving into the pros and cons, it’s important to understand what each option actually means.

Furnished properties include:

All white goods (cooker, fridge, freezer, washing machine)
Essential furniture (beds, wardrobes, sofa, dining table and chairs)
Curtains or blinds
Light fittings
Sometimes smaller items like kettles, toasters, and crockery

Unfurnished properties include:

Basic kitchen appliances (cooker, sometimes fridge)
Bathroom fittings
Curtains or blinds
Light fittings
Carpets or flooring

Important: Unfurnished doesn’t mean completely empty! Most tenants expect basic appliances and fixtures.

Part-furnished (the middle ground):

White goods and some furniture
Often includes beds and wardrobes
Tenant provides smaller items and personal touches

For landlords: Which is better?

Benefits of letting furnished

Higher rental income Furnished properties typically command 10-20% higher rent than unfurnished ones. You’re essentially renting both the space and the contents.

Attracts specific tenants

Young professionals without furniture
Students
Corporate tenants on temporary assignments
International workers

Faster letting Properties are move-in ready, which appeals to tenants who need to relocate quickly.

Tax advantages Furniture costs and replacements can often be claimed as tax-deductible expenses.

Drawbacks of letting furnished

Higher upfront costs You’ll need to invest significantly in good quality furniture and appliances.

Ongoing maintenance You’re responsible for repairing and replacing items when they break or wear out.

Insurance costs Higher premiums to cover the contents you’re providing.

Shorter tenancies Furnished properties often attract tenants who move more frequently.

Benefits of letting unfurnished

Lower initial investment No need to buy furniture – just provide the basics.

Longer-term tenants People with their own furniture tend to stay longer, providing more stable income.

Less maintenance Tenants are responsible for their own belongings.

Simpler management Fewer items to worry about, shorter inventories, less potential for disputes.

Drawbacks of letting unfurnished

Lower rental income Typically 10-20% less rent than furnished properties.

Smaller tenant pool Won’t appeal to students, young professionals, or corporate tenants.

May take longer to let Especially in areas where furnished properties are in high demand.

For tenants: Which is better?

Benefits of renting furnished

Lower upfront costs No need to buy expensive furniture when you move in.

Convenience Everything you need is already there – just bring your personal belongings.

Flexibility Perfect if you’re not sure how long you’ll stay or might need to move for work.

Great for specific situations

First-time renters
Temporary work assignments
International moves

Drawbacks of renting furnished

Higher monthly rent You’ll pay a premium for the convenience.

Less personalisation Limited ability to make the space feel like your own home.

Potential deposit issues You’re responsible for any damage to the landlord’s furniture.

Quality concerns You might not like the style or condition of the provided furniture.

Benefits of renting unfurnished

Lower monthly costs Cheaper rent means more money for other things.

Complete control Choose furniture that matches your style and needs.

Long-term value Build up your own furniture collection over time.

Feels like home Easier to create a space that truly reflects your personality.

Drawbacks of renting unfurnished

High initial costs Expensive to furnish an entire property from scratch.

Moving challenges More costly and time-consuming to move your belongings.

Time investment Takes time to shop for and arrange furniture delivery.

Who typically chooses what?

Understanding typical preferences can help landlords target the right market:

Tenants who usually prefer furnished:

Students
Young professionals (20s-early 30s)
Corporate tenants
International workers
People between permanent homes

Tenants who usually prefer unfurnished:

Families with children
Established professionals
Long-term renters
People who already own furniture
Those wanting to personalise their space

Location makes a difference

Your property’s location significantly affects which option works best:

City centres and university areas

High demand for furnished properties
Students and young professionals are common
Higher rents achievable for furnished

Suburban and family areas

Unfurnished often preferred
Families typically have their own furniture
Longer-term tenancies more common

Business districts

Furnished properties popular for corporate lets
Short-term assignments common
Premium rates possible

Part-furnished: The best of both worlds?

Part-furnished can be an excellent compromise:

For landlords:

Lower investment than fully furnished
Higher rent than unfurnished
Appeals to broader tenant base
Less maintenance than fully furnished

For tenants:

Some convenience without full cost
Ability to add personal touches
Don’t need to buy major appliances
Often better value than fully furnished

What to include in part-furnished:

Essential white goods
Major furniture like beds
Leave out personal items and decorative pieces

Making the right decision

Consider these factors when choosing:

Your target market Research what tenants in your area typically want and can afford.

Property type

Flats often work well furnished
Family houses may suit unfurnished better
Studio apartments almost always furnished

Your budget Can you afford the initial investment in good quality furniture?

Management time Furnished properties typically require more hands-on management.

Local competition What are similar properties in your area offering?

Legal considerations

Safety requirements

All furniture must meet fire safety standards
Electrical items need regular testing
Gas appliances require annual safety checks

Insurance

Furnished properties need contents insurance
Higher premiums for more contents
Make sure your policy covers rental use

Inventories

Detailed inventories essential for furnished properties
Regular condition reports recommended
Clear documentation prevents disputes

The bottom line

There’s no universal “right” answer to furnished vs unfurnished. The best choice depends on:

Your target tenant market
Property location and type
Your budget and management capacity
Local market conditions

For landlords: Research your local market thoroughly. What works in one area may not work in another. Consider starting with part-furnished as a flexible option.

For tenants: Think about your circumstances – how long you plan to stay, whether you own furniture, and your budget for both rent and furnishing costs.

The most successful approach is understanding what your local market wants and delivering it well, whether that’s furnished, unfurnished, or something in between.

Remember: the goal is to create a win-win situation where tenants are happy with their home and landlords achieve good, sustainable returns.