What are the advantages of furnished rentals?
You want to invest in real estate, but still hesitate between empty or furnished rentals?
Using furnished rentals makes it possible to set a higher rent, to stand out from the competition, to obtain a higher security deposit, to offer a more flexible and flexible rental contract, to benefit from more advantageous taxation and to easily switch from an empty rental to a furnished rental (and vice versa).
Rent your furnished apartment or your pied-à-terre in Paris with confidence to the best candidate profiles tenants finely selected by us.
What is furnished rentals?
As a reminder, according to Decree No. 2015-981 of 31/07/2015, we call furnished rental, the provision of a furnished home that includes all the furniture elements essential for normal occupation.
> The guide to furnished rentals
A furnished accommodation must include at least:
> The guide to furnished rentals
A furnished accommodation must include at least:
- Bedding (bed or sofa bed) with duvet or blanket
- Device concealing windows in rooms (shutters or thick curtains)
- Hobs (built-in or separate)
- Oven or microwave oven
- Refrigerator
- Freezer or freezer compartment of the refrigerator with a maximum temperature of -6°
- Sufficient number of dishes for occupants to take meals (plates, cutlery, glasses, etc.)
- Kitchen utensils (pots, pans, etc.)
- Table
- Seats
- Storage shelves
- Light fixtures
- Housekeeping equipment adapted to the characteristics of the accommodation (vacuum cleaner if there is carpet, broom and mop for tiles ...)
What are the disadvantages of a furnished rental?
Be careful though, furnished rentals can also bring some risks and disadvantages:
> Repairs at the expense of the owner
> Repairs at the expense of the tenant
> List of mandatory equipment for a furnished rental
- As rental terms are shorter, tenant turnover is higher
- Rental vacancies are sometimes more frequent between two tenants
- Furniture and equipment must be maintained and regularly renewed (higher initial investment)
- This can lead to a greater risk of deterioration.
> Repairs at the expense of the owner
> Repairs at the expense of the tenant
> List of mandatory equipment for a furnished rental
What tax regime for furnished rentals?
It is possible to carry out the activity of professional lessor when two conditions are met:
Furnished rental, even if it is practiced by a non-professional, constitutes a commercial activity. The resulting profits must be taxed.
Most of the time, renters opt for the micro BIC regime, out of simplicity or ignorance of the simplified real regime.
BIC PLAN
SIMPLIFIED REAL REGIME
> Professional furnished rentals (LMP)
> Non-professional furnished rentals (LMNP)
- The annual revenue withdrawn by all members of the tax household exceeds €23,000 (in relation to this activity),
- The receipts exceed the income of the tax household subject to income tax in the categories of wages and salaries within the meaning of Article 79 of the CGI, BIC other than those derived from the furnished rental activity, agricultural profits and non-commercial profits.
Furnished rental, even if it is practiced by a non-professional, constitutes a commercial activity. The resulting profits must be taxed.
Most of the time, renters opt for the micro BIC regime, out of simplicity or ignorance of the simplified real regime.
BIC PLAN
- Simple to set up regime,
- Possible reduction of 50% of gross income (including expenses), and 71% in the case of furnished tourist accommodation.
- Simply indicate the amount of revenue collected during the year on the general tax return (form n°2042 C PRO) in the Industrial and commercial profits section.
- Ceiling of €72,600
- Tax base: flat-rate
- Social security contributions: 17.2%
SIMPLIFIED REAL REGIME
- Simply file for each of the financial years, a bundle n ° 2031 to the corporate tax services (SIE) which manages the place of geographical location of the furnished if you have a single property, or several furnished rental on which depends either on the main residence or the most important furnished housing.
- Declaration on Forms 2031 and Annexes 2033
- With income of more than € 72,600, the rental activity must be declared to the simplified real regime
- Constitutes a tax saving
- Rent including charges - costs and interest - depreciation
- Social security contributions: 17.2%
> Professional furnished rentals (LMP)
> Non-professional furnished rentals (LMNP)
The different types of renting a furnished apartment
A classic furnished rental with a minimum duration of 12 months and 9 months for students. No contract existed to miss the need between seasonal rental and long-term furnished rental.
Furnished rentals offer owners an alternative and much more flexibility. There are in fact five main furnished rental contracts: the principal residence lease, the mobility lease, the secondary residence lease, the civil code lease and the seasonal rental (otherwise we also have the solidary real lease, the commercial lease and the emphyteutic lease).
> Types of furnished leases
> Guide to furnished rentals
What are the advantages of a furnished rental?
The furnished rental brings advantages to the tenant, as well as to the owner:
> Rental Guide - owner
> Rental Guide - Tenant
> Empty or furnished rental
- The fixed rent may be higher due to the additional benefits
- The furnished makes it possible to stand out from the competition
- The furnished rental lease is more flexible, flexible so less risk in case of unpaid rents
- Taxation is more advantageous (tax allowance, deductible expenses, etc.)
- A higher security deposit : in furnished rentals, the security deposit can be equivalent to two months' rent (excluding charges). As housing is more equipped, the risk of deterioration is greater
- Between two rentals, it is possible to go from an empty (bare) rental to a furnished rental
> Rental Guide - owner
> Rental Guide - Tenant
> Empty or furnished rental
Ce qu’il faut retenir :
- A classic furnished rental with a minimum duration of 12 months and 9 months for students. No contract existed to miss the need between seasonal rentals and long-term furnished rentals.
- Furnished rentals offer owners an alternative and much more flexibility. There are in fact five main furnished rental contracts: the principal residence lease, the mobility lease, the secondary residence lease, the civil code lease and the seasonal rental (otherwise we also have the solidary real lease, the commercial lease and the emphyteutic lease).
- Using furnished rentals makes it possible to set a higher rent, to stand out from the competition, to obtain a higher security deposit, to offer a more flexible and flexible rental contract, to benefit from more advantageous taxation and to easily switch from an empty rental to a furnished rental (and vice versa).
- Be careful though, furnished rentals can also bring some risks and disadvantages.
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Posted on 03/05/2023 by
Andy LECUYER
