How much should one spend on furnishings a rental property?

[johnballinger]

Hi all - can someone please tell me as to how much should I spend on furnishings my investment property?

[Brb]

Would all rather depend on the property itself and what market you are aiming for.

[westminster]

I think you need to give more information.

For example, a 1 bed flat is going to cost less than a 6 bed house. The target market is also relevant.

[johnballinger]

Thanks for your reply. My property is worth £150k (1bed flat) and rental of £800pm. I have been told to spend atleast 2% of the property value on furniture! + VAT + Curtains.

[mind the gap]

Thanks for your reply. My property is worth £150k (1bed flat) and rental of £800pm. I have been told to spend atleast 2% of the property value on furniture! + VAT + Curtains.

So you are looking to rent to single person or a couple?

Do you intend to provide all electrical goods, or just the basics (cooker, fridge, washing machine, beds, carpets, curtains, table, sofa & chairs)?

[westminster]

Thanks for your reply. My property is worth £150k (1bed flat) and rental of £800pm. I have been told to spend atleast 2% of the property value on furniture! + VAT + Curtains.

There is no percentage spend figure. There may be an average, but that's pretty useless with so many variables.

There are choices to be made. For example, you can choose to buy a very cheap table for £30 which may be easily damaged and end up on the scrap heap after a year. Or you can choose to spend £300 on a better quality table which may last for 10 or 20 years and/or can be repaired if it's damaged.

The choices you make may depend on the market you're aiming for. In my case, I let to professional single tenants in central London who rarely, if ever, cause any damage. So it makes sense for me to invest in durable, (idiot-proof), high quality furnishings which are less susceptible to wear and tear, but also appealing to my target market. I also source items on Ebay for much less than 50% of RRP.

If I were letting an HMO to students in Nottingham, my strategy would be a bit different - albeit durability/idiot-proof is, for me, always an essential. Flat-pack self-assembly MDF furniture dies quickly. Buy a Victorian chest of drawers instead and it'll last forever, at not much extra cost. 'Antique' furniture goes for peanuts on Ebay.

[JK0]

My view? Don't buy any furniture at all, and let it unfurnished. Then if you don't have a tenant for a bit, you don't have to pay council tax.

[mind the gap]

I agree with westminster.

(In 17th century Puritan voice) MDF be the Devil's work. Shun it!

[theartfullodger]

MDF be fine if you assemble it carefully & glue every meeting of surfaces you can find .

I've twice furnished 2/3 bed houses for about £1k, white goods & flooring excluded. But shopping at IKEA is HELL....

(Order electronically & they deliver - no store visit necessary!