In the field of real estate rental, it is essential to choose the type of contract that best suits your needs. The furnished rental and the unfurnished rental have notable differences, both legally and fiscally. This article highlights these distinctions to help landlords and tenants make an informed choice.
Definition and Equipment
To begin, it is important to clarify what defines a furnished rental and an unfurnished rental.
| Type of rental | Required equipment |
| Furnished rental | Must include bedding, window blackout devices, cooking plates, refrigerator, crockery, furniture, and cleaning equipment. |
| Unfurnished rental | Must contain no furnished equipment. The simple absence of a single item from the list makes it considered unfurnished. |
Lease Agreements: A Different Contractual Approach
Within rental agreements, several regulatory distinctions exist between furnished and unfurnished rentals. For unfurnished rentals, only one type of contract is generally required, whereas furnished rentals can be subject to several types depending on the tenant’s profile. This includes the standard lease, the student lease, and the mobility lease.
Here is an overview of possible leases:
| Type of lease | Duration | Security deposit |
| Standard lease | 1 year (unfurnished), 3 years (furnished) | 1 month (unfurnished), 2 months (furnished) |
| Student lease | 9 months | 2 months |
| Mobility lease | 1 to 10 months | None (guarantee possible) |
Notice Period and Lease Termination Procedures
The procedures related to notice periods and lease termination also differ between these two types of rentals. For unfurnished rentals, the landlord must give a six-month notice, while for furnished rentals, this period is only one month.
| Actor | Notice for unfurnished rental | Notice for furnished rental |
| Landlord | 6 months | 3 months |
| Tenant | 1-3 months (depending on the zone) | 1 month |
Tax Aspects
Regarding taxation, unfurnished and furnished rentals follow distinct regimes. Income from unfurnished rentals is considered “property income” and rental charges are exempt from declaration. In contrast, furnished rentals are classified under the category of industrial and commercial profits (BIC).
| Type of rental | Tax regime | Declaration threshold |
| Unfurnished rental | Property income | 15,000 euros/year |
| Furnished rental | BIC | 23,000 euros/year |
Considering Seasonal Rental
Alongside traditional leases, you might explore the option of seasonal rental. This type of rental offers advantages such as potentially higher rents and fewer risks of unpaid rent. To explore this option, don’t hesitate to consult our practical guide to starting in seasonal rental.
Using a Concierge Service
Management of rentals can quickly become complex, and this is where a concierge service like Concierge Angels comes into play. Our expertise in property management allows you to delegate logistics while ensuring personalized support at every stage of your rental journey.
For additional information, do not hesitate to contact us and discover the many advantages we can offer in managing your real estate assets.
When considering renting out a property, it is crucial to understand the main differences between furnished and unfurnished rentals. These two options offer distinct advantages and can influence your choices as a landlord or tenant. This article will present the essential features to consider when making your decision.
Definition of Rental Types
The furnished rental refers to a property equipped with minimal furniture and essential equipment, allowing for quick installation for the tenant. According to a decree, a rental is considered furnished if it includes, among other things, bedding, light-obstructing devices, cooking appliances, and kitchen elements. Conversely, an unfurnished rental contains none of these elements, requiring the tenant to bring their own furniture and equipment.
Leases and Rental Contracts
Rental contracts also differ between the two types of dwellings. For an unfurnished rental, only one type of contract is offered, often with a duration of 3 years renewable. In contrast, furnished rentals offer a variety of contracts, allowing tenants to choose lease terms from 1 to 3 years, depending on their profile. This indicates the flexibility of both options to meet tenants’ needs.
Security Deposit and Notice Period
Regarding security deposits, landlords must consider the varying amounts depending on the rental type. For an unfurnished property, one month’s rent excluding charges is required, while for a furnished rental, two months’ rent are required. Concerning the notice period, a tenant in a furnished rental benefits from a reduced period of one month, compared to one to three months for an unfurnished accommodation, depending on its location.
Applicable Taxation
Taxation is another important aspect. Rents from a furnished rental are declared under the category of industrial and commercial profits, whereas rents from an unfurnished rental are classified as property income, and rental charges do not need to be declared. Additionally, furnished rentals may benefit from more favorable fiscal options, such as the actual regime or the micro-BIC regime, depending on the revenue generated.
Targeted Types of Tenants
Finally, the type of tenant may influence your decision. Furnished rentals generally attract mobile individuals such as students or professionals on temporary assignments. On the other hand, unfurnished rentals are often more sought after by families or individuals seeking long-term accommodation.
Furnished or Unfurnished Rental: Which Tax Regime to Choose?
Unfurnished Rental Case
When renting a furnished property, the rents are considered property income. Declaring your income received during the calendar year is mandatory. Rental charges are exempt from declaration.
If you earn less than 15,000 euros in rental income per year (excluding charges), you are defaulted into the micro-BIC regime. However, you can still opt for the actual regime where you can deduct your expenses.
Furnished Rental Case
When renting a furnished property, the incomes received are to be declared under the category of industrial and commercial profits (BIC).
If your annual receipts exceed the threshold of 23,000 euros and the earnings from your rentals are higher than other income of your household, you are considered a professional furnished landlord (LMP). Otherwise, you are considered a non-professional furnished landlord (LMNP).
Also read: LMNP or LMP: statuses and differences
Regarding fiscal regimes, you are also defaulted to the micro-BIC regime if your rental income is less than 72,600 euros. You then benefit from a flat-rate deduction of 50%. You can also choose the actual regime even if the threshold of 72,600 euros is not reached.
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Mobility Lease
The mobility lease is designed for individuals who are considered mobile: students (higher education, internship, apprenticeship contract), in professional training, on a temporary mission, undergoing a professional transfer, voluntary engaged (civil service), etc.
The lease duration ranges from 1 to 10 months without renewal beyond 10 months. If a new lease is signed, it will necessarily be a standard lease.
No security deposit is required, but the lessor has the right to request a guarantor.
Regarding the notice period, the lessor does not need to give notice to the tenant, as the lease automatically ends after 10 months. However, if the tenant wishes to terminate the lease, a one-month notice must be respected.
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Have You Considered Seasonal Rental?
The various leases mentioned above fall within long-term rental arrangements. Have you considered renting your property for short-term stays (seasonal rental)? Indeed, many advantages favor seasonal rental, such as higher rents and no risk of unpaid rent.
Reading this related article will help you understand all the differences between long-term and short-term rentals, and choose the strategy that is most profitable for you: Long-term or short-term rental: which strategy to adopt?
