Define Fully Furnished?

moneysavinmonkey

biggest rises predicted in south-east + london so not in my area thanks.

I love thinking about the rent I pay, about half the amount an interest only mortgage on a smaller property would cost!!!

Horses for courses I think, my sister is roughly the same age as me but lives in a different area and her personal circumstances are different. She bought last year and I think for her that was the right decision, for me it would have been financial suicide.

barnaby-bear

miserly_mum wrote: »

That is an extremely good point and something I hadn't thought of, Thanks

OH is a Manager in a local Business and has quite a few employees looking for accomodation nearer work. Mostly guys in their mid/late 20's who are currently living at home and obviously don't have all the essential to move in with.

Thats why we were (only)considering renting with furniture. Basics like Sofa, table and chairs,cooker ,washing machine ,beds and drawers for clothes.

Blinds,carpets and existing laminate floors are included in the purchase price

Sounds like an HMO, so you need to meet the appropriate higher standards fire alarms etc.

If you supply the washing machine you also have to take the phone calls at 11pm on a friday bank holiday weekend when it breaks/floods or pay someone to take them and deal with appropriately - people paying more for such goods expect these things.

Don't forget the furniture fire labels have to be left attached.

Premier_2

moneysavinmonkey wrote: »

biggest rises predicted in south-east + london so not in my area thanks.

I love thinking about the rent I pay, about half the amount an interest only mortgage on a smaller property would cost!!!

Horses for courses I think, my sister is roughly the same age as me but lives in a different area and her personal circumstances are different. She bought last year and I think for her that was the right decision, for me it would have been financial suicide.

Read it again..carefully!

The figure of almost 25% is the average across the UK. SE may see rises by as much as 37%

moneysavinmonkey

yes i know how averages work thanks.

angelflower_2

miserly_mum wrote: »

Well thanks to everyone for their comments. I'm not as naive as I perhaps sound. I'm well aware that buying to rent is an investment and that we need to charge enough rent to cover our mortgage payments with (hopefully)some to spare.

Hey, I am concerned that you have said that you will have to charge enough rent to cover mortgage payments as from my experience, rent hasn't covered most mortgage payments for a long time. The best bet in terms of purchasing a rental propery is one that will increase in value over the long term but which will also rent easily so for that reason a 1 or 2 bed is best. That also means you will avoid the HMO rules and save yourself a fortune in legal requirements. Depending on the area, typical rents for 1/2 bed places are between 300 - 800 a month. When I worked for a LA, we didnt have any difference between furnished and unfurnished except when done as an exec let however, those properties often took a long time to rent out between tenants.

So, when doing your figures, work out that you will have costs for gas safety inspections/electrical fixed wiring/pat testing. Likely this will cost in the region of £200 per year. Then work out your insurance ie buildings, contents (if you decide to go furnished). Poss £200 a year. You may want to also consider rental insurance which will be perhaps £60-80 per year. You should also consider maintenance costs. I would always bank on at least one months rental as maintenance costs. So say an average of £500. Then, consider that you may have vacant periods in the property - perhaps a month per year? This means you are likely to only receive rental for 9 months out of 12.

All that being said....and back to the question you asked.... The most likely fully furnished properties are all white goods in the kitchen, kettle, plates, cutlery etc (but only basics and dont get all the things you would want in your own kitchen). Lounge sofa, coffee table etc. No tv or you will be responsible for licencing. Bedrooms, beds (no bedding but advise matress protectors), storage etc.

Also, ensure a working vacum cleaner, step ladders (so tenants can change lightbulbs without calling you!!). The least you have, the least you will get calls about to replace/repair.

Hope that helps.

Premier_2

moneysavinmonkey wrote: »

:eek: :eek: :eek: ! Premier, i seem to have rattled your cage. You usually are a very well balanced poster and give good advice ...

moneysavinmonkey wrote:

Just because we have opposing views doesn't mean that I can't appreciate the time + advice you give to posters on theses forums.

Well you have a strange way of showing it!!!

http://forums.moneysavingexpert.com/showthread.html?t=1025815

moneysavinmonkey wrote:

I'm beginning to think i've confused you with another poster!...

I've definitely got you mixed up with another poster.

http://forums.moneysavingexpert.com/showthread.html?t=1058961

I think so too! ... but no idea who. Perhaps you could say who it is that you have been confusing me with. Someone who you clearly disagree with so often yet value their well balanced posts that you appreciate the content of and the time taken to post.

halia

I'd agree with those who say the less you have the less you have to fix/maintain. Thats the biggie when it comes to additional costs, things breaking down, wearing out or needing checks. An unfurnished house will still need some checks and maintanance but not quite as much.

I'm just about to exchange contracts on the sale of my rental house, over the years I realised that the small increase in rent (£50/month at the time) was nowhere near worth it for the hassle factor of additional R&M.

On average in a year I'd have
A washing machine repair
One white good replacement (washing machine, dryer, cooker, fridge, freezer, vacuum cleaner- ie most appliances/white goods last 3-5 years)
Furniture replacement (again most furniture lasts 3-5 years it seems with tenanted property, so one year it might be the bed, next year the sofa etc etc)
Also because I supplied electrical goods and furniture there were additional costs associated with safety checks of those things.

I didn't provide other goods - crockery etc but I can see how those costs would just mount up!
Maintanance is a bit of a nightmare really, if you get your market right for executive type rentals then you can charge a fair whack in return for providing a fully equiped and maintained place. Otherwise you will probably find that the cost of maintaining fully furnished property isn't outweighed by the extra rental.

I'd say be very clear about what your responsibility is for maintance and what is the tenants responsibility. For example who cleans gutters? who pays for mending the aerial when its blown over in high winds? When do you pay for the new washing machine and when is it the tenants fault its broken (cos they put in trousers with bolts in the pockets or something)

angelflower_2

halia wrote: »

I'd say be very clear about what your responsibility is for maintance and what is the tenants responsibility. For example who cleans gutters? who pays for mending the aerial when its blown over in high winds? When do you pay for the new washing machine and when is it the tenants fault its broken (cos they put in trousers with bolts in the pockets or something)

I would say anything connected to the building is the landlords responsibility ie yours. Inc gutters, painting of any outdoor windows/fences, pipes etc, the aerial would be. Any communal charges when charged by a factoring company - although if in a normal stair without a management company dealing then its the tenants. The washing machine would be the tenants but in actual fact trying to enforce that can be difficult ie if you have called the company out because it was reported faulty then will be your name on the bill. You can deduct from the deposit at the end of the tenancy provided all rents etc are up to date (from experience, many tenants dont pay last months rent). Many local authorities will be able to provide you with a standard lease agreement for free which will clarify all these points.