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, it is important to clarify what defines a furnished and an unfurnished rental.
| Type of rental | Required equipment |
| Furnished rental | Must include a bed, window covering device, cooking plates, refrigerator, tableware, furniture, and cleaning equipment. |
| Unfurnished rental | Must not contain any furnished equipment. The simple absence of a single item from the list makes it considered unfurnished. |
Rental 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, while furnished rentals can be subject to various contract types depending on the tenant’s profile. This includes the traditional lease, student lease, and mobility lease.
Here is an overview of possible leases:
| Type of lease | Duration | Security deposit |
| Traditional 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
Procedures related to notice periods and lease termination are also different between these two types of rental. For 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 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 | Rental income | 15,000 euros/year |
| Furnished rental | BIC | 23,000 euros/year |
Considering Seasonal Rental
Alongside traditional leases, you might consider the seasonal rental option. This type of rental offers advantages such as potentially higher rents and lower risk of unpaid rent. To explore this option, do not hesitate to consult our practical guide to starting in seasonal rentals.
Using a Concierge Service
Managing rentals can quickly become complex, and that’s 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 more information, do not hesitate to contact us and discover the many benefits we can offer you in managing your properties.
When you consider renting a property, it is crucial to understand the Main differences between furnished and unfurnished rentals. Both options offer distinct advantages and can influence your choices as a landlord or tenant. This article will present the key 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 occupancy by the tenant. According to a decree, a rental is considered furnished if it includes notably a bed, light-blocking 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
The rental contracts also differ between the two types of housing. For unfurnished rentals, only one type of contract is offered, often lasting 3 years and renewable. On the other hand, furnished rentals provide a variety of contracts, allowing tenants to choose lease durations from 1 to 3 years, depending on their profile. This highlights the flexibility of both options to meet tenants’ needs.
Security Deposit and Notice Period
Regarding the security deposit, landlords must consider varying amounts depending on the rental type. For an unfurnished property, one month’s rent excluding charges is required, whereas for a furnished rental, two months are needed. Concerning the notice period, tenants in furnished rentals benefit from a reduced period of one month, compared to one to three months for unfurnished housing, depending on the location.
Taxation
Taxation is another important aspect. Rents from unfurnished rentals are classified as rental income, and rental charges do not require declaration. For those opting for furnished rentals, rents are declared under the category of industrial and commercial profits, which can offer more favorable tax options, such as the actual regime or micro-BIC regime, depending on income received.
Targeted Tenant Types
Finally, the type of tenant can influence your decision. Furnished rentals generally attract mobile individuals, such as students or professionals on temporary assignments. Conversely, 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?
Case of an Unfurnished Rental
When you rent a furnished rental, the rents correspond to rental income. Declaring your income for the current 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 by default subject to the micro-BIC regime. However, you can still opt to be under the actual regime, in which case you can deduct your charges.
Case of a Furnished Rental
When renting a furnished property, the rents received 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 landlord (LMP). Otherwise, you are considered a non-professional furnished landlord (LMNP).
See also: LMNP or LMP: statuses and differences
Regarding tax regimes, by default, you are also subject 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 72,600 euros threshold is not reached.
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Mobility Lease
The mobility lease is intended for people considered mobile: students (higher education, internships, apprenticeship contracts), in vocational training, on a temporary mission, in professional relocation, engaged voluntary (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 traditional rental lease.
No security deposit is required, but the landlord is entitled to request a guarantee.
Regarding the notice period, the landlord does not need to give notice, 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 Short-Term Rental?
Do the above-mentioned leases fall within the scope of long-term rentals, or have you thought about renting your property for short-term stays (seasonal rental)? Many advantages favor seasonal rentals, such as higher rents and no risk of unpaid rent.
Read this article to learn about 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?
