Furnish Your Rental Property and Boost Rental Income by up to 21%
Buy-to-let furniture is furniture that a landlord invests in specifically for the use of tenants. Furnishing a rental property could help the landlord achieve a higher rent, therefore giving a profitable return on their investment.
To maximise rental income by furnishing a buy-to-let property, a landlord must first understand the best buy-to-let furniture to buy.
What Is a Furnished Buy-To-Let?
Many buy-to-let properties are not furnished or only partially furnished. Some tenants prefer their own furniture, especially those who have been renting for a few years. However, as the average age of tenants decreases, the desire for furniture is increasing.
As a landlord, you could increase the size of your potential tenant base by offering your property furnished or unfurnished. Thus, your property will appeal to applicants who own their own furniture as well as those who don’t. Of course, when you supply furniture you will charge a higher rent – helping you to maximise your rental income.
Most buy-to-let properties are let with appliances (such as washing machines and cookers) included. They are likely to be carpeted and may include curtains. Fully furnished buy-to-let properties also include:
- Sofas and chairs, a coffee table and a television cabinet in the living room
- Beds and bedside cabinets, dressing table and chest of drawers in the bedroom
- A bathroom cabinet, wastebasket, shower curtain and bathmat in the bathroom
- A dining table and chairs
- Bookcases and cupboards
Supplying furniture allows a new tenant to move straight in, carrying no more than their suitcase.
High-End or Budget Buy-To-Let Furniture?
There are four considerations when furnishing your buy-to-let property:
- Your target tenants
While we all need a bed to sleep on, many tenants have different furniture needs around their home. For example, a dressing table that doubles as a desk is ideal for families with teenage children who want to do their homework in their bedroom. For students, a microwave in the kitchen and a desk to work at in the living room are likely to appeal. Families want a dining table for meals together, while young professionals may prefer a breakfast bar to retain extra space for their treadmill.
- Your property
You should always invest in buy-to-let furniture that mirrors the type and quality of your property. A luxury, modern penthouse apartment deserves modern, sleek furnishings. Furnishing such a property with reproduction Georgian tables, chairs and cabinets will look out of place and not appeal to the tenants who are most likely to rent such property.
- Your budget and potential return
Of course, you must also consider your budget, and the return your investment could achieve. You should always invest in the best buy-to-let furniture your budget allows, while maintaining an eye on the extra rent you could charge.
Let’s say that you spend £5,000 on furniture for your buy-to-let property, and this allows you to charge a premium of £50 per month. This is £600 per year or a return on your investment of 12%. That’s far better than keeping that cash in the bank at a savings rate of 1%.
- The expected life of the furniture
Though that 12% is very attractive and will boost your cash flow, you must bear in mind that you spent £5,000 to obtain that cash flow. If the furniture you buy lasts only one year before it needs replacing, then suddenly it becomes a poor investment. Another reason you must buy the best buy-to-let furniture that your budget allows – better-quality furniture tends to last longer.
How Much Extra Rent Could You Charge for a Furnished Buy-To-Let?
According to research by OnTheMarket, the extra rent you could charge for a furnished buy-to-let property differs depending upon its location. However, the amounts are quite astounding. For an investment of around £1,800 in furniture for a two-bedroom flat that includes a sofa, coffee table, bookcase, TV, table and chairs, two double bed frames, two mattresses, a desk and an office chair, you should expect to increase your rent by:
- 7% (£50 per month) in Cardiff
- 9% (£128 per month) in London
- 14% (£85 per month) in Newcastle-upon-Tyne
- 19% (£128 per month) in Leeds
- 20% (£127 per month) in Birmingham
- 21% (£128 per month) in Sheffield
Based on a cost of £1,800, this is a return of as much as 85% per year on your investment. After only 14 months, your investment could have been repaid in full, and you could have replenished your cash saving of the original investment amount.
Our Top Tips for Buy-To-Let Furniture
We’re finding that more landlords are investing in buy-to-let furniture as a strategy to attract high-quality tenants and boost cash flow. If this is a strategy you are considering, we recommend that you:
- Ensure that you invest in the highest-quality furniture that your budget allows
- Buy furniture that is most suitable for your target tenants
- Always match the furniture to the property
You could boost your rental income by 21%, and achieve a fantastic return on your investment in buy-to-let furniture. As part of our commitment to our landlord clients and their tenants, we offer a range of furniture packs to suit all properties and budgets. To learn more, get in touch with Ezytrac today at +44 0 1522 503 717.
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