ASK504: Should we furnish or not? PLUS: Is this deposit request legal?

0:02Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob. Welcome to Ask Rob and Rob, a show we've been doing for a long, long time now where you ask us questions and we give you answers. It's simple, it works, and it works because you send in lovely questions. First, here's a reminder of how you can follow in their footsteps. It's super simple. You head over to propertyhub.net forward slash ask and there you can get your question in in a variety of ways. You can leave us a voicemail. You can leave a computer recording. You can even write in and maybe see your question in the Sunday Times. We do not mind at all, as long as you keep doing it.

0:39Right, let's listen to our first question, which this week comes in from Dan. Hi, Rob and Rob. It's Dan from Worcestershire. Thanks for all the content you've put out. It's been really helpful in getting us started on our property journey. We've just purchased the first two properties. They're just going through as we speak. My wife and I are doing it through a limited company. and we've just got a difference of ideas on whether we should furnish the place before we let it out or not. My initial thoughts are not to furnish it and allow the tenant to furnish it as they wish but my wife thinks that it will set the tone of what we expect in the property if we put some basic furniture in there.

1:18Just wondered if we could get your thoughts on that. Again thanks very much and I look forward to hearing your answers. Thank you. Dan thanks for your question. I would not debate this between you and your wife. I would let the market decide. The market tells you normally whether you need to furnish a property or not. Sometimes it's optional, but quite often the market will guide you. So what do I mean by that? Well, if you are buying in a city centre, then you can try to let it unfurnished, but the market will really dictate that it's furnished and they will be the properties that let quicker.

1:52So in a city centre, that it's typical to see properties furnished because of the type of tenants that you're going to attract. And that is absolutely fine. And that's what the market dictates. Now, if you go further out of a city, it doesn't have to be rural, just a normal suburbia, then you will normally see properties let unfurnished. I say normally, because again, in both scenarios, you can go the other way, but that's the norm. And that's what you tend to see as a general rule. Now, you may be in a particular area where properties, even though it's a bit more suburban, a furnished property may still be a good option to go for.

2:29So if I think of places like Derby or Doncaster or Crewe, huge employers in those areas, lots going on. Sometimes there may be the right reason for the right type of property to furnish it because you're attracting somebody who's contracted into those areas. But we're getting into more niche cases now. But the ultimate authority on this shouldn't be me, shouldn't be you, and shouldn't be your wife. It should be the letting agent that you've spoken to. Now, you may not work with them, but I'd be taking advice from letting agents going, I've got this property, would you let it furnish or unfurnish?

3:04They're the true local experts. They will really know that market inside out, and they will give that advice quite readily for free because their experience is there. It'll take them a second to answer, and they will guide you. They know that market because the market will decide what you should do, and they know that market best. If you happen to speak to a very diplomatic letting agent who wants to sit on the fence so they don't offend you or your wife, go and call two more. There's lots of them and you will get that answer. So that is how I would do this. I would go to a local expert. The local expert will know what the market requires and the market is the ultimate answer to what you should do.

3:42Good luck. Well, there you go. A nice, clear answer. Let's see what we can do now for Emma. Hi Rob and Rob, thank you so much for everything that you provide to all of us, wanting to create a better life for us and our families, really appreciate it. So myself and my husband, we're through a limited company now and we're putting an offering on our third property and we've come across a property that is with a non-high street estate agent, which we've not dealt with before. so in the small print on right move it did say when your offer is accepted you're required to give a deposit didn't say how much so I contacted them asked how much when they were asking me if I wanted to put an offer in and they said seven thousand pound which they don't even know the offer I want to give yet so it's not as if it's a percentage of anything I was open to the thought of maybe putting£2 ,000 deposit in because that would cover legal costs to the seller sort of thing if we had caused issues.

4:42So I'm just wondering, have you come across this stuff before? I'm sure you have, but does it sound legitimate? And have I got a leg to stand on to get the deposit back if there is an issue and it's not my fault? Or is it just best not to hand over that money? I've not handed over money to estate agents before because it usually goes to the solicitors, they said they would be holding the deposit, which I'm uncomfortable with. So I guess my gut instinct is saying stay away from it. To be honest, the property was meant to be vacant and it had a relative living in it anyway. Thank you so much for listening to me and I'd really appreciate your thoughts on it.

5:18Thanks. Emma, I've got a nice clear answer for you as well. Don't do it. I'm sorry, your instincts are right on this one. So what you're describing sounds like something known as the modern method of auction. I don't know why it's called that because it's barely an auction, but I suppose it is modern, but it's not modern in a way that gives you anything to like about it as a buyer. It's really, really buyer unfriendly. So I haven't seen the specifics and it does vary, but when you see something like this, what is normally the case is there will be this flat fee, which you said is£7 ,000, and normally that does not form part of the deposit.

5:52Normally that is an extra fee. That extra fee goes to the agent, not the seller, and normally it's not refundable under most circumstances. So if the seller pulls out, maybe, not sure. If you need to pull out for any reason, including that things are not at all as described, including that your solicitor goes and finds massive problems, you need to pull out. You don't get that deposit back. This normally happens on lower price properties and it's basically a way for agents to make their money without charging the seller. So if you've got a low value property and they'd normally charge one percent of that sale price that's not going to be a lot of money for them they're not really going to be able to get more from the seller therefore they can get more from the buyer and make their money that way it sounds cynical maybe it's a little bit cynical but i think it is largely correct so maybe there are cases where it is just this incredible deal and it is worth taking the risk and you'll happily have take the risk of writing off that seven grand because if it does come off it's going to be so amazing but I've certainly never seen a case like that.

6:53So Emma, I agree with your gut instinct. This is not one to pursue. Well, that's us done for another week. We'll be back soon with the podcast on Thursday. Property Pulse will be landing in your inboxes on Friday. There's loads going on our YouTube channel. You'll see us on Sunday in the Sunday Times and then guess what? We'll be back same time, same place next week answering more of your questions. Until then, take care, have fun. Bye-bye. Bye-bye.