Key Takeaways:

• The Renters’ Rights Act 2025 is pushing London landlords to re-evaluate traditional long-term tenancies.
• Short-term rentals offer higher nightly rates and greater flexibility, without being subject to the new periodic tenancy rules under the law.
• Changing letting strategies means going from an unfurnished longlet into a fully furnished shortlet, which requires upfront capital expenditure.
• Renting furniture allows long-term rental landlords to try shortlets without paying hefty furniture prices.
• Furniture rental services include consultation, conceptual design, home staging, assembly, and maintenance.

A Major Shift in Letting Strategies

The passage of the Renters’ Rights Act 2025 is prompting London landlords to reevaluate their portfolio goals. The new legal framework primarily affects long-term rentals, removing no-fault evictions (Section 21) and fixed-term leases, and demanding higher property standards and new rental practices.

While most of the changes are meant to protect tenant rights and encourage fair rental practices, landlords are starting to pivot to short-term letting strategies to avoid the full effect of the Renters’ Rights Act. Although shortlets are also subject to rules such as the 90-day limit, landlords are attracted to the higher nightly rates and the flexibility they offer for rental properties. Add to that London’s reputation as a top destination in the world, and it’s easy to see the appeal of the lucrative short-term rental market.

But, as promising as it can be, short-term letting demands an upfront cost that landlords may not be ready to pay – fully furnished accommodations. Unlike long-term rentals where tenant usually bring their own furniture, guests expect shortlets to be fully furnished.

Fortunately, there’s a low-risk solution to this logistical headache—furniture rental.

What is Furniture Rental?

The short-term rental market is competitive. It requires high standards and visually appealing interiors. You need to sell a home away from home. That means marketing hotel-grade aesthetics and comfortable amenities.

So if you plan to switch from longlets to shortlets, you need to choose high-quality and visually appealing furniture and decor to attract bookings. How much would that cost?

Did you know:

First-time home buyers spend an average of £15,000+ to decorate and furnish their new home.

According to Aldermore’s First Time Buyer Index, home buyers spend more than £15,000 to decorate and furnish their first home. 23% even admitted to spending approximately £30,000 to personalise the interior of their home.

How can landlords enter the short-term letting market without the need to drain their capital reserve?

Furniture rental opens the door to short-term letting by allowing landlords to switch from long-term letting without buying new furniture outright. It involves renting a set of furniture for a fixed monthly fee, allowing you to gauge the shortlet market’s income potential before deciding to buy the furniture outright.

How furniture rental works

Furniture and design companies offer both high-quality furniture and premium design services. Though the process varies depending on the company, you’ll typically go through the following steps:

• Design requirements. Companies will discuss your design requirements and style preferences. This may include a visit to the property to determine which furniture and decorative pieces will complement the layout. It’s not just about aesthetics and durability. It’s also about home standards and safety compliance.
• Package selection. There are companies that offer set furniture pieces that can be delivered immediately. There are also customised packages for those seeking a unique, personalised style.
• Delivery and installation. Once the pieces have been selected, the company will handle the logistics (delivery, assembly and home staging). This allows landlords to stage their rental property to attract potential guests and secure more bookings.
• Maintenance and warranty. Most furniture rental packages include a warranty or replacement service. This means you don’t have to worry about the wear and tear. Your property is assured of high-quality furniture to maintain the luxurious feel that would attract more guests.

At City Relay, we partnered with Element One House to help property owners furnish properties for short-term letting. They adapt their packages to meet our onboarding checklist, so all properties follow the same premium home standard.

Home staging is the process of furnishing and designing a residential property to highlight its best features and appeal to potential buyers or guests.

When looking for a furniture rental company, always opt for flexibility. Partner with a company that offers options for its furniture packages. At the end of the contract, you can choose to renew with the same furniture, switch to a new style, or buy the furniture outright. This allows you to adapt depending on the success of your short-term rental stint.

Versatility for mid-term letting in London

Furniture rentals can also be used for midlets. Most mid-term letting tenants are either relocating, travelling professionals or international students. This usually means they require fully or semi-furnished units.

This means if your shortlet is about to exceed the 90-day limit, you can switch to mid-term letting to keep earning. You can continue to benefit from the furniture rental without using your capital reserves.

With flexible furnishings, you can switch to shortlets during peak seasons and to midlets during academic or corporate transfer periods. This ensures the property maximises its earning potential while staying compliant.

FAQs About Furniture Rentals in London

How does furniture rental help me deal with the Renters’ Rights Act?

If your property is in need of renovations to meet the Renters’ Rights Act, furniture rentals give you the opportunity to switch from long-term letting to short- and mid-term rentals cost-effectively. This gives you time to save up for costly upgrades without compromising your property’s earning potential.

What is the difference between the upfront cost of buying and renting furniture for a 1-bedroom rental property in London?

Buying furniture would cost an average of £15,000, with basic furnishing costing up to £5,000, mid-range costing £10,000, and luxury costing £20,000. Renting furniture will cost you approximately £250 to £600 per month, and you’re tied to a 6-month contract. With short-lets earning 30% more than longlets, your rental income can cover the furniture rental fees.

Can City Relay use furniture rental to shortlet my vacant property?

Yes, City Relay can connect you to our partner, Element One House, so you can rent furniture for short-term letting. They have our onboarding checklist to ensure your property will have the same premium standards as the rest of the properties we manage. Part of our onboarding services is to take professional photos of your newly staged property for marketing. This will help us attract guests and tenants to rent your property and maximise your rental income.

Does the furniture rental cost include the setup and removal services?

Yes. Most professional furniture rental packages offer end-to-end services. This includes design, logistics (setup and removal), home staging and replacement (if needed). This will remove the complexities of assembly and professional staging, allowing landlords to focus on maximising their rental income and occupancy rates.

Switch Letting Strategies Without the Usual Cost

The Renters’ Rights Act will bring several changes to the private rented sector. The new legal framework and compliance requirements are costing landlords, but they can switch to short-term letting if they can’t comply with the rules yet.

Of course, switching to shortlets means transforming an empty long-term rental into a fully furnished unit. Fortunately, furniture rental services allow you to make the transition without spending a fortune. You can choose a furniture package that fits your property’s aesthetic, so you can market it as short-term accommodation or a mid-term rental. Not only will this help you sidestep the challenges of the Renters’ Rights Act, it will also maximise your property’s earning potential.

If you’re ready to explore a different letting strategy before the Renters’ Rights Act comes into effect, get in touch with City Relay. We partner with Element One House, and they can provide you with a consultation and a package to get your property ready for letting in no time.

Find out how our end-to-end property management services can guide you in complying with London’s volatile rental property market. Get a free rental estimate now.