Landlords in London can make more than £9,000 per calendar month if they furnish their property, a recent study by CIA Landlord Insurance revealed.
On average, landlords with rentals in London receive £2,189 a month in rent. However, if they furnish their property, they could expect to maximise their profits by 316% and rake in nearly £110,000 a year on average, or £9,120 per month.
Bristol is the second most profitable location for landlords with furnished properties with the average monthly income at £2,038. Following closely behind is Brighton and Hove, where landlords can rake in £1,898 per month for their furnished property, giving them a yearly income of nearly £23,000.
According to the research, the least profitable location for landlords with furnished properties is Plymouth, as these types of rentals cost £606, even £225 less per month than unfurnished ones. This suggests landlords could reduce their annual income potential by £2,700 if they provide furniture for their tenants.
London has the highest proportion of furnished properties in the UK. In May 2022, there were over 10,000 furnished rentals listed on Zoopla. However, this means landlords will face higher competition in attracting and retaining tenants.
The UK city with the least number of furnished rentals is Swindon, with just 28 furnished properties listed there in May 2022. Wolverhampton also has a small number of furnished properties available, with 32 furnished properties listed in comparison to 88 unfurnished.
CIA Landlord Insurance said that in the UK, searches for ‘furnished rental’ have risen by 19% in the last 12 months. On the other hand, there has been a decline in people looking for unfurnished rental properties, with internet searches dropping by 202% over the same period.
“Although a fully furnished or part furnished property will come with more responsibility for the landlord, by offering such a property, landlords can look to target, and increase, interest from certain types of tenants who are looking for shorter term rental agreements,” Christopher Walkey, owner of Estate Agent Networking, said.