In summary
| Section 🌟 | Details |
|---|---|
| Definition of furnished rental 🏡 | A housing unit equipped for immediate use, generally intended for long stays (main or secondary residence). |
| Minimum required furnishings 🛋️ | Complete bedding, shutters or curtains, cooking plates, refrigerator, kitchen utensils, table and chairs, cleaning supplies. |
| 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 (Energy Performance Certificate). |
| Advantages for the tenant 👍 | Immediate move-in, no furniture purchase cost, 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 mandated by the landlord, limited personalization. |
| Disadvantages for the landlord ⚠️ | High initial investment costs, more complex management, higher tenant turnover rate. |
| Definition of a tourist furnished rental 🌍 | 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 classification with stars. |
| Advantages 🌟 | Flexible rental options, 71% tax allowance if classified, better visibility on rental platforms. |
| Disadvantages ⚠️ | Lengthy and costly classification process, intensive management, potential restrictions in some cities. |
| Comparison of main features 📊 | Rental duration, usage, lease contract, declaration at the town hall, furnished classification, notice for termination, tenant turnover frequency. |
| Comparison of tax regime 💼 | Micro-BIC allowance (50% for furnished rental, 71% for classified tourist accommodation), income ceiling, advantageous taxation, recoverable VAT. |
| Best profitability 💹 | Stable and consistent income for furnished rentals, high profitability in peak season for tourist furnished rentals, but unstable throughout the year. |
| Main differences 🔍 | Rental duration (long vs short-term), fiscal regime (allowance, advantageous taxation), rental flexibility. |
If you are a property owner considering renting it out, you need to understand the difference between furnished rental and tourist furnished rental. 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, which must be fully equipped to allow the tenant to move in immediately. Unlike an empty rental, where the tenant must provide their own furniture and appliances, a furnished rental already includes all essential elements, such as furniture, appliances, and kitchen utensils. The goal is for the tenant to live there without having to invest in additional furniture or equipment. Generally, furnished rental is chosen for long-term stays, whether it is a primary or secondary residence.
The minimum furnishings required for a furnished rental are defined by law. According to the Alur law (Access to housing and a renovated urban planning), the housing must contain at least:
- A complete bedding (including duvet or blanket),
- Shutters or curtains in the bedrooms,
- Cooking plates and an oven,
- A refrigerator and a freezer or freezing compartment,
- Kitchen utensils (dishes, pots, etc.),
- A table and chairs,
- Cleaning equipment (vacuum cleaner, broom, etc.).
This type of rental is commonly used in large cities where demand for furnished accommodations is higher, particularly by students, professionals on business trips, or expatriates.
Regulations
Furnished rentals are governed by specific rules in France. The lease agreement must have a duration of at least one year and is automatically renewable year after year. This period can be reduced to 9 months for student rentals, in which case the contract is not automatically renewable. The landlord can terminate the contract but must respect a three-month notice if they wish to end the lease (compared to six months for an unfurnished rental).
The tenant, on their side, can also give their notice of departure at any time by respecting a one-month period. This flexibility regarding notice is one of the major advantages for tenants in furnished rentals. Furnished lease agreements must also comply with certain legal obligations such as the Energy Performance Diagnostic (DPE), a habitable surface certificate, and the building’s internal regulations.
It should be noted that if the owner wishes to terminate the rental to repossess the property for a legitimate reason, they must provide a valid reason, such as personal use of the property or its sale. In all cases, the rules governing furnished rentals ensure a certain protection of tenant rights.
Advantages and disadvantages
Advantages for the tenant
One of the Main advantages for the tenant is the ability to move into a fully furnished accommodation, reducing stress and costs associated with buying furniture. This is particularly beneficial for those needing temporary housing, such as students or professionals on assignment. Furnished rentals also offer tenants greater flexibility in lease management, thanks to the short notice period. This makes it ideal for people in transition or who do not want the burden of furniture they will need to transport later.
Advantages for the landlord
For landlords, a furnished rental offers several financial benefits. The rent might be higher than for an unfurnished rental because the property comes with all necessary equipment. Additionally, the tax status of Non-Professional Furnished Landlord (LMNP) allows the owner to benefit from certain tax advantages, such as depreciation on furniture and equipment, reducing income tax on rental income. There is also the option to choose between the micro-BIC regime (with a flat 50% deduction) or the actual regime (deducting expenses and amortizations from taxable income).
Disadvantages for the tenant
However, furnished rentals can also have some disadvantages for tenants. Rent prices are often higher than for unfurnished rentals, which can represent an additional cost. Furthermore, the furniture and equipment choices are imposed by the landlord, limiting the tenant’s ability to personalize their living space fully.
Disadvantages for the landlord
From the landlord’s perspective, the main disadvantage lies in the obligation to invest in furniture and equipment to meet regulatory standards. This entails higher initial costs and more complex management in terms of maintenance of appliances. Indeed, the landlord is responsible for any malfunction or replacement of equipment, which can incur extra costs over time. Furthermore, the tenant turnover rate is often higher for furnished rentals, requiring more time and effort to manage departures and arrivals.
What is a tourist furnished rental?
Definition
A tourist furnished rental is a fully furnished accommodation intended to be rented for short periods to tourists or passing travelers. Unlike traditional rentals, this type of property is specifically reserved for tenants who do not establish residence there. Indeed, a tourist furnished rental cannot be used as primary residence. It can be various types of dwellings, such as houses, apartments, studios, or villas. These accommodations are often rented for holidays, professional stays, or other reasons requiring temporary lodging.
