In Summary
| Section 🌟 | Details |
|---|---|
| Definition of furnished rental 🏡 | A housing unit equipped for immediate living, generally intended for long stays (primary or secondary residence). |
| Minimum required furnishings 🛋️ | Complete bedding, shutters or curtains, cooking plates, refrigerator, kitchen utensils, table and chairs, cleaning equipment. |
| Regulations 📜 | One-year lease agreement (or 9 months for students), 3-month notice for the landlord, one-month notice for the tenant, legal obligations such as the EPC. |
| Advantages for the tenant 👍 | Immediate move-in, no furniture purchase costs, flexible lease with reduced notice period. |
| Advantages for the landlord 💰 | Higher rent, tax benefits (depreciation, choice between micro-BIC or actual regime). |
| Disadvantages for the tenant ⚠️ | Higher rent, furniture imposed by the landlord, limited personalization. |
| Disadvantages for the landlord ⚠️ | High initial investment cost, more complex management, higher tenant turnover rate. |
| Definition of a short-term furnished rental for tourism 🌍 | Furnished accommodation for short stays (maximum 90 days for the same tenant), reserved for tourists, not a primary residence. |
| Regulations 🏛️ | Mandatory declaration to the town hall, possible change of use authorization, voluntary star rating classification. |
| Advantages 🌟 | Rental flexibility, 71% tax deduction if classified, better visibility on rental platforms. |
| Disadvantages ⚠️ | Lengthy and costly classification process, intensive management, potential restrictions in certain cities. |
| Comparison of main features 📊 | Rental duration, usage, lease agreement, declaration in the town hall, furnished classification, notice period for termination, tenant frequency. |
| Comparison of tax regimes 💼 | Micro-BIC deduction (50% for furnished rentals, 71% for classified holiday rentals), income ceiling, advantageous taxation, recoverable VAT. |
| Greatest profitability 💹 | Stability and steady income for furnished rentals, high season profitability for tourist rentals, but variable throughout the year. |
| Main differences 🔍 | Duration of rental (long vs short term), tax regime (deductions, advantageous taxation), rental flexibility. |
If you are a property owner considering renting out your property, you need to understand the difference between furnished rental and tourist furnished accommodation. Although they share similarities, these two types of rentals are governed by distinct regulations and offer different tax advantages.
What is a furnished rental?
Definition
A furnished rental is a type of accommodation offered for rent that must be fully equipped to allow the tenant to move in immediately. Unlike an unfurnished rental, where the tenant provides their own furniture and appliances, a furnished rental already contains all essential elements such as furniture, appliances, and kitchen utensils. The goal is that the tenant can live there without having to invest in additional furniture or equipment. Generally, furnished rentals are preferred for long-term stays, whether for primary or secondary residence.
The minimum required furnishings for a furnished rental are defined by law. According to the Alur law (Access to housing and urban renewal), the accommodation must contain at least:
- A full bedding set (including duvet or blanket),
- Shutters or curtains in the rooms,
- Cooking plates and an oven,
- A refrigerator and a freezer or freezing compartment,
- Cooking utensils (dishes, pots, etc.),
- A table and chairs,
- Household cleaning equipment (vacuum cleaner, broom, etc.).
This type of rental is commonly used in large cities where demand for furnished apartments is higher, especially by students, traveling professionals, or expatriates.
Regulations
Furnished rentals are governed by specific rules in France. The lease agreement must have a minimum duration of one year and is tacitly renewable annually. This period can be reduced to 9 months for student rentals, and in this case, the agreement is not automatically renewed. The landlord can terminate the lease but must respect a three-month notice period if they wish to end the lease (versus six months for an unfurnished rental).
The tenant can also give their notice of departure at any time by respecting a one-month notice. This flexibility in notice periods is one of the major advantages for tenants in furnished rentals. Lease agreements must also comply with certain legal obligations such as the energy performance diagnosis (DPE), the habitable surface certification, and the building’s internal regulations.
It should be noted that if the owner wishes to terminate the rental to repossess the property for legitimate reasons, they must provide a valid reason, such as personal use of the property or its sale. In all cases, regulations governing furnished rentals ensure a certain protection of tenant rights.
Advantages and disadvantages
Advantages for the tenant
One of the Main advantages for tenants is the ability to move into a completely furnished apartment, reducing stress and costs related to furniture shopping. This is particularly beneficial for those needing temporary accommodation, such as students or professionals on assignment. Furnished rentals also offer tenants greater flexibility in lease management due to the shorter notice period of one month. Therefore, this type of rental is ideal for people in transition or those wishing to avoid transporting furniture afterward.
Advantages for the landlord
For landlords, a furnished rental offers several financial benefits. The rent can be higher than in an unfurnished rental because the property is offered with all necessary appliances. Additionally, the Non-Professional Furnished Landlord (LMNP) tax status allows owners to benefit from certain tax advantages, such as depreciation on furniture and appliances, reducing taxable rental income. They can also choose between the micro-BIC regime (with a 50% flat deduction) or the actual regime (deducting expenses and depreciation from taxable income).
Disadvantages for the tenant
However, furnished rentals can also have some disadvantages. Rent prices are often higher than in unfurnished rentals, representing an additional cost. Also, since furniture and appliances are imposed by the landlord, tenants cannot fully personalize their living space.
Disadvantages for the landlord
From the landlord’s perspective, the main disadvantage is the obligation to invest in furniture and appliances to meet regulatory standards. This involves higher initial costs and more complex management in terms of maintenance. The landlord is responsible for any malfunction or replacement of equipment, which can incur additional expenses over time. Additionally, the tenant turnover rate tends to be higher in furnished rentals, possibly requiring more time and effort to manage departures and new arrivals.
What is a tourist furnished accommodation?
Definition
A tourist furnished accommodation is a fully furnished dwelling, intended for short-term rentals to tourists or passing travelers. Unlike a traditional rental, this type of property is specifically reserved for tenants who do not establish residence there. Indeed, a tourist furnished accommodation cannot be used as a primary residence. It can take various forms, such as houses, apartments, studios, or villas. These dwellings are often rented for vacations, business trips, or other reasons requiring temporary lodging.
The stays in a tourist furnished accommodation are generally limited to a maximum of 90 consecutive days per tenant, but there is no limit on the number of different tenants per year. Additionally, this type of rental is often used by owners to generate income from their secondary residence when they do not occupy it themselves.
Regulations
Tourist furnished accommodations are subject to strict regulation. The owner must declare their property to the town hall before renting it out. This declaration is mandatory whether it is a primary or secondary residence. The declaration form (CERFA no. 14004*04) must be completed and sent to local authorities, which will provide a registration number to be mentioned on all rental listings.
In certain municipalities, especially in tight zones (large cities with high demand for housing), a change of use authorization may be required. This means the owner must obtain approval from the town hall to transform their property—from its initial use as a residence—to a property rented for tourist stays. This measure aims to regulate the real estate market and limit the impact of tourist rentals on long-term housing supply.
In addition to the mandatory declaration, tourist furnished accommodations can be classified. This classification is based on strict standards and is voluntary. It allows assigning from 1 to 5 stars depending on equipment quality, services provided, and the comfort of the property. This classification is validated by accredited organizations after assessment and is valid for a period of 5 years.
Advantages and disadvantages
Advantages
One of the main advantages of tourist furnished rentals is the flexibility it offers. Owners can rent their property for short durations, ideal for holidays or seasonal demand. As a landlord, you can easily adjust your rates based on the season (high or low) and thus maximize your income.
Another notable advantage concerns the taxation. A classified tourist furnished rental benefits from a 71% tax deduction on rental income, compared to 50% for a standard furnished rental. This deduction is especially advantageous if your rental income does not exceed 176,200 euros per year. It means only 29% of the rental income will be taxed, significantly reducing the tax burden.
Finally, classification as a tourist furnished rental offers better visibility on rental platforms like Airbnb or Abritel, where classified properties are often promoted to attract potential tenants. This classification also provides a quality guarantee for travelers, which can justify higher rental prices.
Disadvantages
However, obtaining the status of a classified tourist furnished rental also presents some disadvantages. First, the classification process can be lengthy and complex. It requires engaging an accredited organization that will evaluate the property based on a well-defined set of criteria, including available amenities and accessibility. If any upgrades or improvements are necessary to meet classification standards, this can incur a high cost for the owner.
Furthermore, although short-term rentals offer greater flexibility, they demand more intensive management. The owner must handle multiple tenants throughout the year, which involves tasks such as welcoming tenants, regular maintenance, managing arrivals and departures, and equipment upkeep. Some owners choose to delegate these tasks to a concierge service or specialized agency, but this adds a additional expense that can reduce overall profitability.
Finally, in certain cities, renting as a tourist furnished rental is strictly regulated, and municipalities may impose limitations on the number of days allowed for rental of the same property. Failure to comply can result in significant financial penalties.
Comparison of main characteristics
| Criterion | Furnished rental | Tourist furnished accommodation |
|---|---|---|
| Rental duration | Long-term (1 year, 9 months for students) | Short-term (max. 90 days for one tenant) |
| Usage | Primary or secondary residence | Exclusively for tourists, not a primary residence |
| Lease agreement | Standard, renewable | Flexible rental, non-renewable |
| Declaration in the town hall | Not required | Mandatory |
| Classified accommodation | Not applicable | Possible, with tax benefits |
| Notice period for termination | 3 months for the landlord, 1 month for the tenant | Not applicable (short durations) |
| Tenant turnover | Low turnover | Frequent turnover |
Comparison of tax regimes
| Tax characteristics | Furnished rental (standard) | Tourist furnished rental (classified) |
|---|---|---|
| Tax regime | Industrial and commercial profits (BIC) | Industrial and commercial profits (BIC) |
| Micro-BIC deduction | 50% | 71% |
| Income ceiling (micro-BIC) | 72,600 € | 176,200 € |
| Advantageous taxation (classification) | Not applicable | Yes, with classification |
| VAT recovery | No | Yes, if classified as a tourist furnished rental |
The most profitable option
| Criterion | Furnished rental | Tourist furnished rental |
|---|---|---|
| Type of rental | Long-term (primary or secondary residence) | Short-term (tourist, not a primary residence) |
| Average monthly income | Stable but slightly lower | Higher during peak season |
| Potential annual income | Moderate and steady (regular income) | Fluctuating (peak tourist periods, off-season downturns) |
| Occupancy rate | Stable and high (year-round) | Variable depending on seasonality |
| Nightly or weekly price | Not applicable (monthly rent) | Higher, especially in peak season |
| Management costs | Lower (low turnover, less cleaning) | Higher (frequent turnover, managing arrivals/departures, regular cleaning) |
| Concierge fees | Unnecessary or low fees | Often necessary to manage frequent arrivals and departures |
| Rental charges (water, electricity) | Standard charges | Higher charges due to rapid turnover and intensive equipment use |
| Tax advantages | 50% deduction (micro-BIC) | 71% deduction (if classified as tourist furnished rental) |
| Initial investment cost | Moderate (basic furniture) | Higher (quality furniture and equipment to attract tourists) |
| Overall profitability | Stability and consistent long-term income | High profitability during peak season, but variable throughout the year (seasonality dependence) |
The main differences between a furnished rental and a tourist furnished rental
Rental duration
The primary difference between a furnished rental and a tourist furnished rental lies in the rental period. A furnished rental can be leased for a long period, without particular restrictions, whether for primary or secondary residence. It is thus possible to rent a furnished apartment for several months or even years. This flexibility allows tenants to establish residence in the property and stay long-term.
In contrast, a tourist furnished rental is designed for short-term stays. French law limits a tenant to 90 consecutive days, making it ideal for tourists or passing travelers. Consequently, tourist furnished rentals are intended for temporary occupation and cannot be used as a primary residence.
Tax regime
Tax-wise, both types are taxed under the category of industrial and commercial profits (BIC), meaning income from these rentals must be declared as business income. However, a significant difference exists in the tax treatment of classified tourist furnished rentals.
A classified tourist furnished rental benefits from a more favorable tax deduction than a standard furnished rental. Specifically, it allows a 71% flat deduction, meaning only 29% of the rental income is taxable. In comparison, non-classified furnished rentals are subject to a 50% deduction under the micro-BIC regime. This classification enhances the owner’s ability to optimize their tax situation.
Flexibility
Regarding flexibility, a tourist furnished rental offers greater freedom, especially because it allows short-term rentals. Stays can last from a few days to several months, aligned with tourist demand. This enables owners to adjust rates based on the seasonality and tourist demand. Short-term rentals are particularly suitable in tourist hotspots where demand fluctuates significantly.
Conversely, a furnished rental is typically aimed at long-term tenants seeking durable housing, such as their primary residence. This type of rental is less flexible in terms of tenant frequency but offers greater stability for the owner, with leases lasting one year and renewable. Due to lower tenant turnover, management is simplified.
Conclusion
In summary, choosing between a furnished rental and a tourist furnished rental will depend on your goals as an owner. If you aim to maximize income via short-term stays, tourist furnished rentals are an ideal option. However, for more stable occupancy, furnished rentals remain a reliable solution.
