How much do you budget for furnishing your rental projects?

Discussion in 'General Property Investment Discussion' started by Tracey Woods HMO, May 11, 2017.

  1. Tracey Woods HMO

    Tracey Woods HMO Director of Landlord Smart Forum Partner

    I am interested to know just how much investors budget for furnishing their HMOs, SA units or property projects and what factors do they bear in mind when selecting the price range?
     
  2. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    We budget around £200-250 for a double duvan bed. Similar for a wardrobe and maybe £100 for a chest of drawers? We keep our rooms quite basic although we dress them further for viewings. We now personally prefer built in furniture as it is very robust and lower maintenance (through damage e.t.c.). Do you offer built in options @Tracey Woods HMO?
     
  3. Phil1979

    Phil1979 New Member Forum Partner

    Hi Tracey,

    HMO is something i am considering. What would be a typical budget for furnishing (for a 4-5 bed) in your opinion?
     
  4. Tracey Woods HMO

    Tracey Woods HMO Director of Landlord Smart Forum Partner

    There are many trade suppliers that are used to providing furniture of differing levels to the rental sector and HMOs. The cost does vary dependent upon the standard you want to achieve. Trade suppliers are good as they offer service and quality with 3 year guarantees to back their furniture too. As a rule of thumb for a bedroom I would budget £400-500 which would get you a bed, wardrobe, chest of drawers and bedside table. For a lounge/diner you would be looking at around the £500 budget.

    Lease finance is a great way to finance the purchase of your furniture enabling you to get the finish and quality you want vs what you can afford. If you would like to know more about that please don't hesitate to get in contact with us at Landlord Smart.

    I hope that helps.
     
  5. Longterminvestor

    Longterminvestor Active Member

    The lease option sounds very interesting as this will help with cash flow in the early days.
     
  6. nmb

    nmb Well-Known Member

    It would depend on the furnishings required but I doubt you would get much change out of £2,000?

    The idea of leasing probably means you can buy higher quality furnishings than you might otherwise have been able to afford and also helps short term cash flow. But don't spend big just for the sake of it.
     
  7. Tracey Woods HMO

    Tracey Woods HMO Director of Landlord Smart Forum Partner

    I would totally agree with you comment about not spending big just for the sake of it. I believe that decisions as to the quality and type of furniture purchased must always be based on what your tenant or customers will expect (also can be considered what is currently being offered to raise yourself above the market and achieve maximum returns).
     
  8. realdeals

    realdeals Active Member

    It also has to be reflected in the level of rent you are looking to charge - then again that comes back to your target market.
     
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