Is It More Cost Effective To Rent Furnished or Unfurnished?

Rental prices are expected to rise in coming years as more and more of us turn to renting over homeownership.

If you’ve started looking at what’s on the market, you might be asking yourself which is better; furnished or unfurnished?

From a personal perspective, opting to rent unfurnished gives you more opportunity to put your own stamp on a place. However, doing so will require extra time and effort and could leave you living without key bits of furniture for a while at first.

But which option is better for your finances?

The initial layout

While unfurnished properties do come with kitchen appliances and other fittings such as carpets and lights, you could be surprised by how much furniture you’ll need to buy if you don’t own any already. Your shopping list could include a bed, a wardrobe, drawers, a dining table, a sofa, a TV and more.  

You could make savings by buying second-hand or borrowing items from friends and family, but if you want to create your own look, you’ll have to pay for it. Make sure to think about this initial spend and try to work out a budget so you remain financially stable.  

Rental prices

If you need somewhere to stay for a short period of time, it makes sense to opt for a furnished flat. However, rental prices are typically higher for furnished properties, so if you’re planning to stick around then choosing an unfurnished option could pay off in the long term.

Furnished properties are more expensive as you’re paying to rent the furniture too. If your furniture is your own however, you may want to think about getting contents insurance, which is an additional cost.

Moving on

There are pros and cons to furnished and unfurnished renting when you eventually decide to give the keys back and head somewhere new. Firstly, if your furniture is all your own, you’re at less risk of losing your deposit — though you will still have to cough up for any damage to walls, doors or built-in appliances.

Renting a furnished property will save you the time, effort and cost of lugging furniture to a new home when you do move out, and you won’t need to pay for storage space if you’re in between places either.    

However, you’re unlikely to be able to avoid paying for furniture forever. You may eventually decide you’d like to settle down in an unfurnished rental property or even your own home, meaning you’ve just postponed that initial cost – not erased it altogether.

Decision time

Ultimately, whether it’s better to rent a furnished or unfurnished property will depend on your current financial situation, your short-term and long-term plans and your personal preferences.