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 present 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 with, it is important to clarify what defines a furnished rental and an unfurnished rental.
| Type of rental | Required equipment |
| Furnished rental | Must include a bed, window blackout devices, cooking plates, refrigerator, dishes, 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. |
The 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 typically required, while furnished rentals can be subject to multiple types of contracts 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 (deposit possible) |
Notice Period and Lease Termination Procedures
The procedures related to notice periods and lease termination are also different between these two types of rental. In the case of an unfurnished rental, the landlord must give a six-month notice, whereas for a furnished rental, 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 area) | 1 month |
Tax Aspects
Regarding taxation, unfurnished and furnished rentals follow different regimes. Income from unfurnished rentals is considered rental income, and property charges are exempt from declaration. In contrast, furnished rentals are categorized under the industrial and commercial profits (BIC) category.
| Type of rental | Tax regime | Declaration threshold |
| Unfurnished rental | Rental 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, do not hesitate to consult our practical guide to starting in seasonal rental.
Using a Concierge Service
Managing rentals can quickly become complex, and that’s where a concierge service like Concierge Angels comes in. Our expertise in property management allows you to delegate logistics while guaranteeing personalized support at every stage of your rental journey.
For more information, do not hesitate to contact us and discover the many benefits we can offer you 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 a minimum of furniture and essential appliances, allowing for quick installation by the tenant. According to a decree, a rental is considered furnished if it includes, among other items, a bed, devices to obscure light, 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 housing. For an unfurnished rental, only one type of contract is offered, often lasting three years and renewable. In contrast, furnished rentals offer a variety of contracts, allowing tenants to choose lease durations from 1 to 3 years, depending on the profile. This reflects the flexibility of both options to meet tenants’ needs.
Security Deposit and Notice Period
Regarding security deposits, landlords must consider varying amounts depending on the rental type. For unfurnished properties, one month’s rent excluding charges is required, while for furnished rentals, two months are demanded. Concerning the notice period, a tenant in furnished accommodation benefits from a reduced period of one month, compared to one to three months for unfurnished housing, depending on its location.
Taxation
The taxation aspect is another important consideration. Rents from a furnished rental are declared under the category of industrial and commercial profits, while rents from an unfurnished rental are considered rental income, and property charges do not require declaration. For furnished rentals, options such as the actual regime or the micro-BIC regime may offer more favorable tax benefits, depending on the income received.
Target Tenant Types
Finally, the type of tenant may influence your decision. Furnished rentals generally attract mobile individuals, such as students or professionals on temporary assignments. In contrast, unfurnished rentals are often more sought after by families or individuals looking to settle long-term.
Furnished or Unfurnished Rental: Which Tax Regime to Choose?
The Case of Unfurnished Rental
When renting unfurnished, the rents are classified as rental income. Declaration of your income received during the calendar year is mandatory. Property charges are exempt from declaration.
If you earn less than 15,000 euros in rental income per year (excluding charges), you are automatically subject to the micro-BIC regime. However, you can also choose to be taxed under the actual regime, which allows you to deduct your charges.
The Case of Furnished Rental
When renting furnished, the received rents must be declared under the category of industrial and commercial profits (BIC).
If your annual income exceeds the threshold of 23,000 euros and your rental income surpasses other household income, you are considered a professional furnished lessor (LMP). Otherwise, you are considered a non-professional furnished lessor (LMNP).
Also read: LMNP or LMP: statuses and differences
Regarding tax regimes, if your rental income is below 72,600 euros, you are automatically subject to the micro-BIC regime, which offers a flat 50% allowance. You can also opt for the actual regime even if the 72,600 euros threshold is not reached.
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The Mobility Lease
The mobility lease is intended for individuals considered mobile: students (higher education, internship, apprenticeship contract), in vocational training, on a temporary assignment, in professional relocation, voluntary engaged (civic 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 rental agreement.
No security deposit is required, but the landlord has the right to ask for a guarantee.
Regarding the notice period, the landlord 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 observed.
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Have You Considered Short-Term Rental?
Do the above-mentioned lease types fit your needs, or have you thought about renting out your property for a short duration (seasonal rental)? 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 select the strategy that is most profitable for you: Long-term or short-term rental: which strategy to adopt?
