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Furnished or Unfurnished

LandlordZONE for Rental Property Knowledge
20th March 2007
 
 
 
 
 
 
  Letting fully furnished, part-furnished or unfurnished no longer has any implications regarding security of tenure for the tenant or for taxation. However, Council Tax and the 10% Depreciation Allowance may be affected - you don't pay Council Tax during voids if let unfurnished, but if you do this you cannot then claim the 10% Depreciation Allowance.  

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Furnished or Unfurnished
 
Key Points:
  • In fact there is no legal definition of furnished, unfurnished or even part-furnished in the UK
  • These are terms, which have come about through practice, in reality have no industry standard.
 Quote "Books are not made for furniture, but there is nothing else that so beautifully furnishes a house." Henry Ward Beecher (1813 - 1887)
 
 
 
Full Article:

Furnished or Unfurnished?

In fact there is no legal definition of furnished, unfurnished or even part-furnished in the UK - these are terms, which have come about through practice, in reality have no industry standard.

What is defined is all furnishings supplied must meet fire safety standards and it's in your interests as a landlord to check electrical appliances before a tenancy commences and have the electrical system checked periodically.

Letting fully furnished, part-furnished or unfurnished no longer has any implications regarding security of tenure for the tenant or for taxation. However, Council Tax and the 10% Depreciation Allowance may be affected - you don't pay Council Tax during voids if let unfurnished, but if you do this you cannot then claim the 10% Depreciation Allowance.

The inventory records the items provided and condition. It is then signed by both parties preventing later disagreements, as the tenancy is then based on those items actually provided and accepted as part of the contract.

As a guide:

Unfurnished – many tenants these days prefer unfurnished (or part furnished) as being mobile they bring their own furniture and prefer to use their own items, particularly beds. Even unfurnished generally means that carpets, curtains and some white goods (i.e. fridge, cooker) are included.

Part-furnished - here you would expect to see the basics as above, but perhaps the addition of items such as wardrobes, dining table and chairs etc, but not beds, 3-piece suites, TV, dish washers, washing machines etc.

Furnished or Fully Furnished – it's to the landlord's discretion and to some extend negotiation as to the standard and amount of furniture provided, depending upon the type of tenant you are targeting. In a fully furnished letting you would expect to see similar to above with the addition of beds, 3-piece suites - in fact everything needed to make a comfortable living home. Crockery, cutlery, towels, bedding etc while expected in the high-end lettings may be subject to negotiation and not always provided.

When you have viewings of a property, while still tenanted, point out to the new tenants exactly what is to be included and excluded and discuss requirements then.

If you are willing to be flexible as a landlord, for example removing and storing unwanted items or adding additional items as required you will increase your chances of letting quickly, increasing your annual rental income.

Note: never rely totally on these standard answers. Before taking action or not, always seek professional advice with the full facts of the case and all documents to hand. LandlordZONE.co.uk

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