Furnished vs. Unfurnished Rentals in Central London

Furnished vs. unfurnished rentals: what works best in Central London?

Lettings across London’s prime market improved in February, with data suggesting a yearly uplift of almost 40% in lets agreed, alongside a rise of more than a quarter (26.6%) in new instructions. At the same time, rents are nearly a third (32.7%) above the pre-pandemic average of 2017-19. 

But with over 38% more homes on the prime London market at the end of February than at the same point the year before, you could find yourself up against competition for perfect tenants. So every decision you make as landlord is likely to be hugely important as you aim for a speedy, profitable let.

 One great decision could be to let out in the spring, when demand is high and you can present your place at its best – it’s great strategic timing to secure long-term tenants during this season. As the market picks up after winter, you can look forward to faster turnarounds and potentially a higher rental income.

Another key decision will be whether to rent out your central London house or apartment furnished or unfurnished. To be clear, even ‘unfurnished’ homes will probably still come with some items, such as cookers and white goods. Equally, for some ‘furnished’ properties landlords include soft furnishings such as rugs, lamps, cushions and kitchen equipment.

 Another option could be to let out a house or apartment as partly furnished, meaning basics such as beds and sofas are included, but not everything tenants might need.

Letting out furnished: the pros

• Greater rental yield

In central London in particular, sourcing and transporting furniture can be a hassle. Furnished places remove that problem, and many tenants are willing to pay more for this convenience. On average, furnished rentals in London attract up to 20% higher rents than unfurnished places.

• Let out you property more quickly

Especially if you’re letting out to international tenants, corporate relocaters, contractors or young professionals (clearly a large market in central London), furnished places allow renters to move into their new home more quickly, and void periods between tenancies become fewer and further between. And if you’re targeting short-term lets, the flexibility means you can make adjustments to the rent, in keeping with market rates, more quickly.

• A way of storing your furniture

If your house or apartment is already furnished pre-let, including items you want to keep hold of, leaving them in place could save on storage or transportation. As mentioned, this can be tricky or expensive in London.

• Tax benefits

Landlords can claim taxable expenses when they replace and maintain furniture and appliances as required.

When does it make sense to let out unfurnished?

• If you’re targeting long-term tenants

Long-term tenants are more likely to have their own furnishings. So you will probably need to initiate the letting process afresh less often, leading to reduced turnover.

• Maintenance can be easier

If you have fewer items of furniture to look after, upkeep obviously takes up less time and is therefore cheaper. Equally, you won’t have to do as many complete inventory checks in which you have to note any damages to the furniture to prevent potential disputes at the end of the tenancy.

• Council tax relief

If you do experience vacant or void periods, unfurnished London properties may be eligible for temporary council tax relief.

Furnished and unfurnished lets with McGlashans Property Services

At McGlashans Property Services, we’ve covered the prime central London rental market for more than three and a half decades. As a boutique, independent central London lettings agency, we forge strong working relationships with both landlords and tenants in a fast-paced and rapidly changing market.

Get in touch today and we can talk you through the pros and cons of letting out in central London furnished or unfurnished.

At the same time, McGlashans Interiors specialises in bespoke luxury rental across the heart of London. So we can help with the perfect furniture hire package. Visit our Marylebone shop and showrooms on Crawford Street and see some of our gorgeous pieces in person.