When preparing a rental property for the market, landlords are faced with a crucial decision: should they furnish the property or leave it unfurnished? This choice can have a significant impact on your property’s attractiveness to potential tenants and ultimately determine its rental success. Is it really true that furnished properties fetch more in the market?
In this blog post, we will explore the pros and cons of furnishing a rental property and examine relevant statistics pertaining to the Scottish rental market, providing valuable insights for landlords.
Understanding the Pros of Furnished Rental Properties
Furnished properties offer a range of benefits that make them appealing to tenants, from increased tenant demand to convenience for potential tenants. In Scotland’s rental market, furnished properties often attract a larger pool of potential tenants.
This is particularly true in urban areas like Glasgow, Edinburgh, and Dundee, where there is a high demand for rental properties among students and young professionals.
Furnished properties eliminate the need for tenants to invest in furniture, making them an attractive choice for individuals who prefer a hassle-free moving experience. Moreover, furnishing a property can be a substantial upfront cost for tenants, which they may prefer to avoid.
Staged and furnished properties tend to command higher rental values compared to unfurnished properties. This is due to the added convenience and the fact that landlords are providing additional amenities.
Finding the right tenant
Staging a rental property to cater to the target tenants you’re seeking can have the long-term benefit of attracting tenants who are more likely to stay for an extended duration.
By creating a well-staged and appealing living space, you can attract tenants who appreciate the attention to detail and are more inclined to maintain the property in good condition.
Weighing the Cons of Furnished Rental Properties
While furnished properties have their advantages, there are also some considerations landlords should keep in mind.
Maintenance and Replacement
Furnishing a rental property means taking on the responsibility of maintaining and replacing furniture as needed. Wear and tear, damages and regular updates may be required. This can potentially increase the landlord’s expenses and time commitment.
Furnishing a property comes with the challenge of selecting furniture and décor that appeals to a broad range of potential tenants. Personal preferences in design can be subjective, and a landlord’s choice may not always align perfectly with everyone’s tastes.
However, there are many reasons that could make it worth it for you. Check out our previous blog post on rental staging which includes our top seven tips for doing so successfully.
Key Insights from the Scottish Rental Market
The demand for furnished rental properties in Scotland has been steadily increasing. This is particularly evident in popular rental destinations like Glasgow, Edinburgh, and Dundee, where the student population and young professionals seeking urban living opportunities are driving this trend.
The decision to furnish or not may also depend on the property’s location and type. In urban areas with a high influx of transient residents, such as city centres, furnished properties are more sought after. However, in suburban or family-oriented neighbourhoods, unfurnished properties may be preferred.
Furnished properties in Scotland typically command a rental premium of around 10% to 15% compared to unfurnished properties. This premium can help offset the initial investment in furnishing and ongoing maintenance costs.
Find out more
As a landlord in the Scottish rental market, the decision to furnish a rental property should be carefully considered. While furnished properties generally attract a larger pool of potential tenants and command higher rental values, landlords must weigh the associated costs and responsibilities.
Tay Letting advises landlords to assess their target market, the location of the property, and their long-term goals before making a final decision.
If you are considering renting out your property, get in touch today. Together, we’ll discuss how we can ensure a quick, stress-free and successful listing to secure fantastic tenants.
