How much tenants will pay for furnished homes revealed
Landlords can charge tenants up to 21% more per month for renting a two bedroom furnished flat than they can for an unfurnished property, research has revealed.
The findings from OnTheMarket, a property website, found that it would cost a landlord £1,800 to furnish a two-bedroom flat when they buy the TV, sofa, table and chairs along with two double beds, plus other furniture.
Researchers found that renting a two bedroom property in Sheffield which had been furnished, saw tenants paying £726 on average when compared to an unfurnished property with tenants paying £598 - that's 21% more.
Researchers found that tenants in Birmingham will pay £127 more, that's 20% extra, while in Leeds there's a 19% premium worth £128 and for tenants in Coventry and Manchester, there is a 15% premium.
‘It's worth calculating the cost for furniture’
OnTheMarket's commercial director, Helen Whiteley, said: "The research suggests it's worth calculating the cost for furniture and deciding whether this initial outlay will be offset during the rental period.
"Spread through a year-long tenancy, the costs can be £150 per month which means it's worth a prospective tenant giving consideration to whether or not they want to rent long-term as there are clear benefits and convenience for a tenant to have a ready to live in property when weighed against the prospect of buying everything instead."
A spokeswoman for one firm of Newcastle-based property managers, says there's a lot of furnished student accommodation while long-term tenants wanting family homes tend to collect their own items.
She added: "Since the tax relief for landlords on furnishing properties was abolished by the government, we have seen a big drop in these properties and around three quarters of our business is unfurnished.
"Landlords are more likely to buy rent guarantee insurance for an unfurnished property because this will protect them against the tenant not paying rent."
Call for rental deposit reform
Meanwhile, a survey has revealed that nearly half of tenants want the system for deposits to be dropped and replaced with a low-cost insurance policy.
Now consumer group Which? says it's time for the government reform rental deposits.
Their call comes after the survey revealed that 43% of tenants would prefer to rent deposit free but have a deposit protection insurance rather than spending £1,000 or more on their deposit.
Also, 71% of those taking part in a national newspaper survey backed deposit free renting.
A spokesman for Which? said: "It's concerning that people go into debt in covering the cost of a deposit, particularly since they have to wait a significant time to get their previous deposit returned. The deposit system is now crying out for reform so it will be fit for purpose for growing numbers of tenants who are renting their home."
