Furnished vs Unfurnished: Which Renting Option is Better?
This article explores the pros and cons of letting properties furnished or unfurnished, exploring some key considerations for both landlords and tenants.
08/04/2025By Pauzible Team · Editorial Team
The choice between furnished and unfurnished properties is a significant decision for landlords and tenants alike. Each option carries its own set of benefits and challenges, from financial implications to tenant satisfaction and long-term investment returns. To make an informed decision, landlords need to consider their target market, while tenants must weigh the convenience of furnished homes against the personalisation of unfurnished spaces. This article explores the pros and cons of each option, exploring key considerations for both landlords and tenants.
What Do Furnished and Unfurnished Properties Include?
When it comes to property rentals, clarity is crucial. Furnished properties generally come equipped with items such as:
Furniture: Sofas, arm chairs and coffee tables; dining tables and chairs; beds, mattresses, bedclothes and bedside tables; and wardrobes and cabinets.
Other items: Lamps, bins, toilet brushes, kitchenware, cookware and dining ware.
By contrast, unfurnished properties may only provide basic fixtures and fittings, such as:
Carpets, or wooden or other flooring.
Built-in wardrobes and cabinets.
Appliances such as fridges, washing machines, dishwashers, ovens and hobs.
However, the level of furnishing can vary from one property to another, so transparency in listings is essential.
Furnished Properties: The Pros and Cons
Why Landlords Opt for Furnished Homes
Higher Rental Income Furnished properties typically command higher rent. In cities such as London or Birmingham, where professionals, students and corporate tenants are significant, the demand for convenience allows landlords to charge a premium.
Attracts Short-Term Tenants Furnished properties are also ideal for short-term lets, such as corporate rentals, serviced accommodation or Airbnb. The flexibility to cater to transient markets ensures higher occupancy rates.
Quick Occupancy Furnished properties appeal to tenants who want to avoid the hassle of buying furniture, making them an attractive option for expatriates, students, professionals or people relocating for work.
Challenges for Landlords
Upfront Investment Furnishing a property can be quite expensive, with quality furniture and appliances running into thousands of pounds. For landlords, this represents a significant upfront expense.
Wear and Tear Furniture in rental properties is typically subject to heavy use, leading to higher maintenance and replacement costs over time.
Narrower Tenant Pool Families or long-term tenants often prefer unfurnished properties to personalise their homes, potentially limiting demand.
Why Tenants Choose Furnished Properties
Convenience and Cost Savings Moving into a fully furnished home eliminates the need to invest in furniture, making it particularly appealing for those starting fresh or relocating.
Ideal for Short-Term Living Students, professionals on fixed-term contracts or those unsure of their long-term plans usually gravitate towards furnished homes.
Hassle-Free Move Tenants avoid the logistical challenges and expenses associated with transporting furniture between properties.
Drawbacks for Tenants
Higher Rent The added convenience comes at a price, as furnished properties generally command higher monthly rents.
Lack of Personalisation Living with someone else’s choice of furniture can feel impersonal, especially if the design is not entirely to tenant’s own taste.
Unfurnished Properties: The Pros and Cons
Benefits for Landlords
Attracts Long-Term Tenants Families and long-term renters often prefer unfurnished properties, leading to longer tenancies and reduced turnover. These tenants value the opportunity to create a personalised living space.
Lower Initial Outlay By not furnishing the property, landlords can reduce their upfront investment, making it a more cost-effective option.
Lower Maintenance Costs With no furniture to replace or repair, landlords avoid ongoing expenses related to wear and tear.
Challenges for Landlords
Potentially Lower Rents Unfurnished properties usually generate lower rental income compared to their furnished counterparts, especially in competitive urban markets.
Longer Vacancy Periods In areas where the demand for furnished rentals is higher, unfurnished homes may take longer to rent.
Why Tenants Prefer Unfurnished Homes
Freedom to Personalise Tenants enjoy the flexibility of furnishing their homes to suit their tastes, making the property feel truly theirs.
Lower Rent Unfurnished properties often come with lower monthly costs, appealing to budget-conscious tenants.
Challenges for Tenants
High Upfront Costs Purchasing furniture can be a significant initial expense for tenants moving into an unfurnished home.
Logistics and Moving Costs Transporting furniture between homes can be cumbersome and expensive, particularly for those without access to a van or movers.
Market Trends and Target Audience: What Works Where?
For landlords, the decision often hinges on their target market. Cities such as Manchester, London and Edinburgh have high demand for furnished properties, driven by students, professionals and corporate renters.
Regarding tenant preferences in suburban areas, a study by Howsy, reported by Landlord Today, found that in cities such as Plymouth and Portsmouth, over 62% of tenants preferred unfurnished homes. This indicates a significant demand for unfurnished properties in certain suburban markets.
Additionally, a survey by GoCompare, as reported by Property Industry Eye, revealed that 60% of tenants expressed a preference for unfurnished properties, yet only 14% of listings offered this option. Understanding the local market’s needs is critical for maximising returns.
Legal and Practical Considerations
For Landlords
Furniture Safety Compliance: Furnished properties must meet strict fire safety standards. Items such as sofas, mattresses and curtains need to be fire-resistant.
Detailed Inventory: To avoid disputes over damages, landlords should provide a comprehensive inventory with photographs.
For Tenants
Deposit Concerns: Furnished rentals may require higher security deposits to account for potential damage to furniture.
Lease Terms: Tenants should confirm with landlords if they can replace or remove furniture in furnished properties to personalise their space.
Which is More Profitable for Landlords?
While furnished properties can generate higher short-term rental income, they often come with higher costs for maintenance and furnishing. Unfurnished homes, on the other hand, attract stable, long-term tenants, minimising turnover and vacancies. Profitability depends on the property’s location, target market and landlord strategy.
Which is Better for Tenants?
For tenants, the choice depends on lifestyle and financial priorities. Furnished properties offer convenience and are ideal for short-term renters, but come at a premium. Unfurnished homes provide more flexibility and lower rent, making them a better option for those planning a long-term stay.
Final Thoughts: Furnished or Unfurnished?
The decision between furnished and unfurnished properties boils down to market dynamics, financial goals and personal preferences.
Landlords: Align your property offering with tenant demand in your area to maximise occupancy and rental yield.
Tenants: Consider your budget, lifestyle and long-term plans to choose a home that suits your needs.
By understanding the pros and cons, and market trends, both landlords and tenants can make informed decisions that align with their goals, ensuring a mutually beneficial rental experience.
FAQs
Q. What is the difference between furnished and unfurnished properties? Furnished properties come equipped with items such as furniture, appliances, furnishings and kitchenware, while unfurnished properties usually only provide the basics, such as flooring, built-in cabinets and wardrobes, and minimal appliances.
Q.What are the advantages of renting a furnished property for landlords? Furnished properties can attract higher rents, appeal to short-term tenants and are easier to rent out in urban markets where convenience is valued.
Q.Why might a tenant prefer an unfurnished property? Unfurnished properties allow tenants to personalise their space, typically come with lower monthly rents and are more suitable for long-term renters who plan to bring their own furniture.
Q.What are the financial implications for landlords when offering furnished properties? Furnished properties require a higher upfront investment for furniture and appliances and incur ongoing maintenance and replacement costs due to wear and tear.
Q.Are furnished or unfurnished properties more profitable for landlords? Profitability depends on the market and target audience. Furnished properties may generate higher short-term rental income, while unfurnished properties attract long-term tenants, reducing turnover and vacancies.
Q.What legal obligations do landlords have for furnished properties? Landlords must ensure that furniture meets fire safety compliance standards and provide a detailed inventory to avoid disputes over damages.
About the author
Pauzible Team
Editorial Team
The Pauzible Team consists of finance professionals and property market specialists dedicated to reinventing home ownership and BTL financing. With deep expertise across UK real estate and innovative financial products like Equity Partnership Agreements, we provide landlords and homeowners with the insights they need to unlock equity, navigate market volatility, and build sustainable wealth through property. Our mission is to make complex property finance simpler, quicker, and more accessible for everyone.
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