Property Square Magazine - October 2007
ROOM SERVICE
This month Susan Fitz-Gibbon, of Fitz-Gibbon, considers the increased demand for professional furnishing and interior design services in the rental market.
In recent years we've seen a shift in attitude towards the rental market sector and renting is no longer seen as 'half-way house' between selling and buying a home. Indeed, people are increasingly choosing to rent as a viable option given the ever-increasing rates associated with buying and selling property.
As a result, today's discerning tenants expect gadgets, gizmos and designer-style furnishings as standard so when it comes to furnished properties, landlords are aiming high. It goes without saying that buying the latest style icon is a costly business so many investors maximise their returns by renting furniture and using interior design services. This can help minimise any void periods - or reduce them altogether - and offers a totally flexible solution, which is not as costly as you might image.
To Rent or not to Rent?
Fundamentally, renting furniture allows savvy investors to reach a wider market audience. When prospective tenants view a property some will require more furniture that others so many landlords will rent furnishings as a means to meet tenants' diverse demands. Others choose to professionally furnish or interior design the property from the outset. This can also be a great way to maximise the potential of a home and create the 'wow' factor tenants are looking for.
Furthermore investors are increasingly time poor and many live or work outside the UK. Those who choose to furnish a property themselves can fail to factor in the time and monetary costs of sourcing and buying furniture, replacing tired and worn items, removing furniture where necessary and even storing items that might be surplus to requirement. Modern furniture rental services can provide value-for-money by offering ready-made solutions of complementary furniture as well as bespoke options and 'packs' of electrical goods.
Trust me, I'm a Professional!
There are many furnishing companies out there but it's important to find a professional who understands the property market and can advise how you can best appeal to your target market - this is particularly helpful for overseas landlords. These days, choosing furniture is easy and good companies enable landlords to browse their collections on-line so whether you require a 'turn key' package ro an accessory pack for the kitchen, it's quick and easy.
By leaving everything to the professionals you can be sure the items you choose have been carefully selected to incorporate durability as well as the latest trends and mush-have fashion items. These days 'beech-effect laminate' is more likely to be 'wenge', 'glass' or 'chrome' with Gucci-style bedroom furniture, oversized-headboards and chic 'home office' packs readily available. Our own electrical pack includes a flat screen television, DVD player and Hi-fi and it's these items that today's discerning tenant is demanding.
Often, investors who have already purchased furniture recognise the benefits of renting electrical or lighting packs to enhance the home. By adopting this strategy, landlords can create all the latest looks without worrying about the associated depreciation value. This cost is borne by the rental company who are experts in updated the products available as technology and trends change. After all, when it come to technology today's latest gadgets are tomorrow's museum exhibits!
As the rental sector continues to mature and grow in London, we're seeing an increased demand for full interior design services too. The corporate market in particular seeks properties that are well presented and often highly specialised with individual concepts. Interior design is a great way to harmonise and accentuate the best aspects of a property and we've already noticed that our own interiors service generates added appeal and the best results.
These days landlords want total flexibility and a 'can do' attitude with consistent client support. If you're service provider is failing in this respect review the situation just as you would review your portfolio.
Remember, when renting furniture reputable companies ensure that the price includes full installation and removal of packaging, a tailor made quote, collection and return of keys where required and a no obligation site survey. The cost of furniture rental can also be deductable against tax so check with your accountant where you stand with regard to off setting the purchasing of the furniture - it may be in your interest to deduct the cost...
To find out more in the local area visit www.fitzgibbon.co.uk or call 020 7938 5444
Ask the Experts
Q: How should I proceed once an offer has been made?
A: Faced with a high offer or fast let, it's often tempting to forget or dismiss important factors, but glossing over the tenant selection process can often lead to problems. Competent Lettings Agents will obtain references on your prospective tenants and Fitz-Gibbon obtain a credit check as well as existing landlord and character or employer references. Don't ever accept incomplete paperwork and only move forward when you are satisfied.
Read all the clauses in the tenancy agreement carefully and ask your Lettings Agent to explain any you don't understand. Remember, standard agreements disallow pets, home working or alterations to your property without express permission. If you have agreed to alter the contract make sure all relevant terms are amended or included. Finally if you are undertaking a corporate let or premium lease, your Lettings Agent should ensure the person signing the tenancy is authorised to do so on behalf of the company.
Susan Fitz-Gibbon, Partner Fitz-Gibbon T: 020 7938 5444