How Much Does It Cost to Furnish an HMO?
October 13, 2021
How much does it cost to furnish an HMO? In my October 2021 video, I used a working budget of around £1,500 per bedroom, including a share of the communal furniture and equipment. For a four-bedroom HMO, that meant roughly £6,000 rather than simply adding up four beds and wardrobes.
Those are historical costs, not current supplier quotations. The useful part of the video is the budgeting method: separate bedroom furniture, shared living space, kitchen equipment and optional finishing touches, then make sure the total reflects the home you’re actually going to provide.
Furnishing is easy to underestimate because each item can look relatively small beside the purchase price and refurbishment bill. Put all the items together, add delivery and installation, and the amount becomes significant enough to affect the investment return.
You can watch my original HMO furnishing-cost breakdown for the supplier examples and prices I discussed at the time.
Start with a complete bedroom specification
My standard bedroom package in the video included a bed, mattress, wardrobe, chest of drawers and bedside table. That gives a clearer starting point than saying each room will be furnished and leaving the detail until the end.
I’d want to know the dimensions as well as the price. A wardrobe that looks suitable online may be awkward in a narrow bedroom, and a larger bed can make circulation difficult even if the room meets a minimum floor-area requirement.
The package also needs to suit the people likely to rent the room. Storage, usable space and a comfortable bed matter more than a collection of decorative items that looks good in one photograph but makes the room harder to use.
I prefer to decide that specification early. It makes quotations easier to compare and reduces the temptation to buy disconnected items that don’t fit together practically or visually when they arrive.
What my £810 bedroom figure included
In 2021, I described using Fusion Furniture for a package costing about £810 per room including VAT. I said the service included delivery, assembly and setting the furniture up in the room.
That’s important context for the number. Comparing it with a cheaper collection of flat-pack items without allowing for transport, assembly time and packaging disposal would not be comparing the same service.
I named the supplier because viewers had asked who I used. It isn’t a current price check or a promise that the same package and service remain available. For a new project, I’d ask for an up-to-date written quotation showing exactly what’s included.
I’d also check lead times and access arrangements. A furniture order that arrives after the planned letting date can affect income, while a failed delivery or unsuitable item can create extra work at the busiest stage of the refurbishment.
Treat room dressing as a separate choice
The video also discussed an optional dressing pack with items such as bedding, a lamp and wall art. I estimated around £200–£250 per room, but I couldn’t confirm the exact pack price on the website during filming.
That uncertainty is worth preserving. It would be misleading to turn the estimate into a precise historic invoice or a current supplier price. The point was that dressing the room added a separate cost beyond the basic furniture package.
I thought presentation helped the finished home feel more attractive during viewings. But I’d still distinguish what the tenant needs from what improves the photographs or initial impression. Both may have value, but they aren’t the same spending decision.
I’d specify what remains for the tenant and what is only used for marketing. That avoids confusion about bedding, accessories or other items that appear in pictures but may not be included in the tenancy.
Budget for the shared living area
A shared lounge needs its own allowance. In the video I discussed sofa options around £350–£400 and explained that I had preferred the quality of DFS sofas to another option we’d tried in one HMO.
That was my experience and preference at the time, not a current product recommendation. I’d now compare suitable products on comfort, durability, dimensions, fire safety, delivery and total cost rather than assume a brand name settles the decision.
The size of the room matters too. A sofa that blocks circulation or leaves no sensible place for other furniture isn’t a bargain. I’d think about how the expected number of occupants will actually use the space.
If finance is offered, I’d look at the whole arrangement rather than the attractive monthly figure. The commitment still needs paying, and spreading the purchase price doesn’t remove the furniture from the total cost of setting up the property.
Tables and chairs need to match occupancy
I allowed roughly £200–£400 for a dining table and chairs in the original breakdown. The range reflected the size of the HMO and how many people needed to be accommodated.
That sounds obvious, but it’s easy to price a small set and carry the same allowance into a larger property. More occupants can mean more seats, more storage and a different layout, not just another bed upstairs.
I’d check whether the dining area still works when chairs are pulled out and people move through the room. A floor plan with furniture pushed neatly against the walls can hide how cramped the space becomes in use.
The aim is a functional shared home. Spending enough to make it work properly is different from adding expensive finishes that don’t improve daily life or make the room more lettable.
The kitchen equipment allowance is easy to miss
In the video I used a range of around £1,000–£1,500 for kitchen equipment and contents. That included items such as fridge-freezers, microwave, toaster, kettle, cutlery, plates, glasses and mugs.
It was an equipment allowance, not the cost of installing an entirely new kitchen. Cabinets, worktops, plumbing and the wider refurbishment need their own budget where applicable. Mixing those categories can make the setup cost look much smaller than it is.
I explained that we tended to use more refrigeration capacity as occupancy increased, including two fridge-freezers in the five-person examples discussed. That described our approach; it isn’t a universal rule that one appliance is lawful below a particular number and two automatically satisfy every requirement above it.
I’d check the local amenity standards and the actual storage and cooking provision needed. The equipment has to support the people living there, not merely fit a generic shopping list.
Rebuild the four-bedroom budget carefully
Using the basic historic bedroom package, four rooms at £810 comes to £3,240. Add a sofa, dining furniture and the kitchen equipment allowance, and the approximate £5,000 basic figure in the video becomes easier to understand.
The fuller working allowance of £1,500 per room produced a £6,000 total for four rooms. That was intended to leave space for better presentation and additional shared-area items, rather than treat every pound as bedroom furniture.
The per-room approach is a convenient budgeting shortcut. It isn’t a reason to multiply one number blindly for every property. Shared costs don’t always increase evenly, and a larger house may require a different specification.
For a real purchase, I’d replace the shortcut with an itemised budget before committing. The shortcut helps screen a deal; the detailed list tells me whether I can deliver the proposed finish for the money allowed.
Safety belongs in the specification
Furniture and electrical equipment supplied in a rental home need to be suitable and safe. I’d include that requirement when choosing products rather than assume a low price or an attractive photograph is sufficient.
For upholstered items, I want appropriate evidence of compliance with the applicable fire-safety requirements. I’d also check the safety of supplied appliances and ensure the layout doesn’t obstruct the routes people need to use.
Second-hand items can require particular care because their history and condition may be less clear. A saving at purchase isn’t useful if an item is unsafe, unsuitable or has to be replaced immediately.
I’d keep records of what was supplied, its condition and any relevant product information. That makes the furnishing decision part of operating the property properly, rather than a last-minute shopping exercise after the builders have finished.
Correctly budget for television use
My original TV-licence explanation was too broad. Disconnecting a television from a terrestrial aerial doesn’t by itself determine whether a licence is needed. What people watch, including live broadcasts through online services and BBC iPlayer, matters.
The government’s TV Licence guidance explains the distinction between live viewing, iPlayer and other on-demand content. In shared accommodation, the tenancy arrangements and where viewing takes place also affect the coverage needed.
I wouldn’t tell tenants that a streaming subscription automatically removes every licensing requirement. I’d make the arrangements clear and check the current rules for the actual use of the property.
Likewise, any subscription offered as part of the accommodation needs to permit the intended use under its terms. The original video described what we did at that time; a new setup needs its own checks rather than copying an old arrangement without review.
Include replacement costs after the first letting
The initial furnishing bill is only the start. Mattresses, appliances and other items can need repair or replacement while the property is operating. I’d allow for that in the ongoing costs rather than treat the first purchase as the last money the furniture will ever need.
Durability therefore matters alongside the initial price. An item that costs a little more but suits the use and is easier to maintain may be a better decision, although a higher price alone doesn’t prove better value.
My article on the profit left from rent explains why an allowance for irregular costs belongs in the calculation. My letting-agent fee guide also helps when deciding who handles the practical work around replacements and tenant changes.
I want the furnishing budget to support a home that looks good, works well and remains manageable. That’s a more useful objective than furnishing as cheaply as possible and dealing with the consequences later.
Price the finished home, not just the bedrooms
My historic £1,500-per-room allowance was a way to remember the whole property: bedroom packages, communal areas, kitchen equipment and the finishing details. For a current project, I’d obtain fresh quotations and check the complete specification against the building and its intended occupancy.
If you’d like help thinking through an HMO budget, book a free 30-minute call. You can also explore the Starter Club or find out about Done For You for support with your next step.