Unfurnished - cost

mel123

Quick question about renting unfurnished.

Compared to the market rate, how much less would you expect to pay for renting unfurnished?
The answer at the moment because the rental market is a bit crazy is probably nothing, but say it wasnt crazy, what would be the norm for unfurnished?

SteM

mel123 wrote: »

Quick question about renting unfurnished.

Compared to the market rate, how much less would you expect to pay for renting unfurnished?
The answer at the moment because the rental market is a bit crazy is probably nothing, but say it wasnt crazy, what would be the norm for unfurnished?

How many bedrooms and where?

My experience when I was renting was that there was little difference. All landlords that I dealt with had furnished their apartments and if I asked for it unfurnished they just rolled their eyes because they would have to put furniture they'd already bought in storage.

Michael D Not Higgins

In Ireland, the only unfurnished places I've seen have been the higher end of the market where they offered furnished or unfurnished. There's no movement in price between the two. In fact I don't remember a time where that hasn't been the case.

The fact is that renting in Ireland is traditionally done by the lower end of the market, students and young professionals. They typically want furnished places since they haven't build up much furniture of their own. It doesn't suit most landlords to cut out the vast majority of the renting population so unfurnished places tend to be larger houses in better areas or short term lets close to the likes of Google where the price is not being cut in relation to anything else anyway.

If the flat is already furnished and you want to rent it unfurnished, I wouldn't expect a landlord to give me a discount. The main reason would be that they might save on maintenance/replacement cost but they still have to store the furniture and can't claim wear and tear of 12.5% a year over 8 years which makes their tax bill higher.

If you're buying to let and are considering the difference between furnished and unfurnished, you have to ask yourself who your potential tenants are likely to be. If it's a flat close to the city, it's likely to be students or young professionals and they'll want furnished. If it's a house in the suburbs, you're looking at families and there is more scope for people having their own furniture to move in.

mel123

Thanks for the replies
Its a 2 bed in Dublin. There wasnt even a washing machine or dishwasher in (so a request wasnt put in for the furniture to be taken out in the beginning). It was rent unfurnished as seen. It is a lovely house in a nice neighbourhood.
I was just curious if there was an unwritten rule of thumb as such for unfurnished, even though its not that popular here in Ireland.

Senecio

My wife an I rent unfurnished. It's a new build and we're renting direct from the property developer as is everyone else in the estate. We were given the option of €1,500 per month unfurnished or €1,700 per month furnished (3 bed). Unfurnished still has washer, dryer, fridge & dishwasher included. I know that our situation is quite unique but it might give you some perspective.

Michael D Not Higgins

mel123 wrote: »

Thanks for the replies
Its a 2 bed in Dublin. There wasnt even a washing machine or dishwasher in (so a request wasnt put in for the furniture to be taken out in the beginning). It was rent unfurnished as seen. It is a lovely house in a nice neighbourhood.
I was just curious if there was an unwritten rule of thumb as such for unfurnished, even though its not that popular here in Ireland.

Well that's just illegal, there are minimum standards for renting and provision of certain facilities even if it's rented unfurnished.

http://www.citizensinformation.ie/en/housing/renting_a_home/repairs_maintenance_and_minimum_physical_standards.html

I'd stay away from that place. The landlord is either ignorant or is intentionally remiss in his duties.

Michael D Not Higgins

Michael D Not Higgins wrote: »

The main reason would be that they might save on maintenance/replacement cost but they still have to store the furniture and can't claim wear and tear of 12.5% a year over 8 years which makes their tax bill higher.

I'd imagine they can still apply depreciation to the furniture even if its in storage. It was still a capital cost associated with the business.

Michael D Not Higgins

Isabel Fat Sister wrote: »

I'd imagine they can still apply depreciation to the furniture even if its in storage. It was still a capital cost associated with the business.

I'm not sure about that. The guide from Revenue states

"The allowances are available only where the expenditure is incurred wholly and exclusively in respect of a house used solely as a dwelling which is, or is to be, let as a furnished house on bona fide commercial terms on the open market."

If it's not let as a furnished house then it can't be allowed. Just my reading though, and I'm not an expert in tax law or accountancy.

Michael D Not Higgins

Michael D Not Higgins wrote: »

I'm not sure about that. The guide from Revenue states

"The allowances are available only where the expenditure is incurred wholly and exclusively in respect of a house used solely as a dwelling which is, or is to be, let as a furnished house on bona fide commercial terms on the open market."

If it's not let as a furnished house then it can't be allowed. Just my reading though, and I'm not an expert in tax law or accountancy.

I'm thinking of it more from the scenario of the place being let furnished and then the LL being asked to remove things so the tenant can put in their own which appears to be more common than actual unfurnished lets from the outset.

Michael D Not Higgins

Isabel Fat Sister wrote: »

I'm thinking of it more from the scenario of the place being let furnished and then the LL being asked to remove things so the tenant can put in their own which appears to be more common than actual unfurnished lets from the outset.

You may have a point. I'm not sure how strict they are on things like that. I guess the problem would still be there with cost of storage then.

Michael D Not Higgins

Michael D Not Higgins wrote: »

You may have a point. I'm not sure how strict they are on things like that. I guess the problem would still be there with cost of storage then.

Yes of course, I fully agree its not an ideal scenario for the LL regardless of being able to claim the depreciation or not. He has invested in furnishing the place as this is what the vast majority of the market wants and the last thing he wants is to have to take the stuff away again and store it.

pilly

mel123 wrote: »

Thanks for the replies
Its a 2 bed in Dublin. There wasnt even a washing machine or dishwasher in (so a request wasnt put in for the furniture to be taken out in the beginning). It was rent unfurnished as seen. It is a lovely house in a nice neighbourhood.
I was just curious if there was an unwritten rule of thumb as such for unfurnished, even though its not that popular here in Ireland.

It's not up to the minimum standard for rental then. Unfurnished doesn't mean without appliciances. I don't think a dishwasher is an essential but a washing machine, cooker, fridge and microwave are minimum.