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 property owners 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 a bed, window coverings, cooking plates, refrigerator, dishes, furniture, and cleaning equipment. |
| Unfurnished rental | Must not contain any furnished equipment. The mere 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 usually required, whereas furnished rentals may be subject to several contract types depending on the tenant profile. This includes the standard lease, the student lease, and the mobility lease.
Here is an overview of the 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 (caution possible) |
Notice Period and Termination Conditions
The procedures related to the notice period 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 property income, and rental charges are exempt from declaration. Conversely, 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 Short-Term Rentals
Alongside traditional leases, you might explore the option of short-term rental. 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 short-term rentals.
Seeking a Concierge Service
Rental management can quickly become complex, and this is where a concierge service like Concierge Angels comes into play. Our expertise in real estate management allows you to delegate logistics while ensuring personalized support at every stage of your rental journey.
For any additional information, do not hesitate to contact us and discover the many benefits we can offer in managing your properties.
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 property owner or tenant. This article will present the essential characteristics 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 setup for the tenant. According to a decree, a rental is considered furnished if it includes notably a bed, 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.
The 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 for a duration of 3 years renewable. Conversely, furnished rentals offer a variety of contracts, allowing tenants to choose a lease duration between 1 and 3 years, depending on their profile. This highlights the flexibility of both options to meet tenants’ needs.
Security Deposit and Notice Periods
Regarding security deposits, landlords must consider varying amounts depending on the type of rental. For an unfurnished property, one month’s rent excluding charges is required, while for furnished rentals, two months are demanded. Concerning the notice period, a tenant of a furnished rental benefits from a reduced period of one month, compared to a notice of one to three months for an unfurnished property, depending on its location.
Taxation
Taxation is another important aspect. Rents from a furnished rental are taxed under the category of industrial and commercial profits, and rental charges do not require declaration. For those choosing a furnished rental, rents are reported under the category of industrial and commercial profits, which may lead to more favorable tax options, such as the actual regime or the micro-BIC regime, depending on the revenue received.
Targeted Types of Tenants
Finally, the type of tenant can 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 looking to settle long-term.
Furnished or Unfurnished Rental: Which Tax Regime to Choose?
The Case of Unfurnished Rental
When renting out a furnished property, rental income falls under the property income category. Reporting your earnings for the calendar year is mandatory. Rental charges are exempt from declaration.
If you earn less than 15,000 euros annually in rental income (excluding charges), you are automatically subject to the micro-BIC regime. However, you can still opt for the actual regime, where you can deduct your charges.
The Case of Furnished Rental
When renting a furnished property, the income received must be declared under the category of industrial and commercial profits (BIC).
If your annual receipts exceed the threshold of 23,000 euros and your rental income surpasses other sources of income in your household, you are considered a professional furnished landlord (LMP). Otherwise, you are regarded as a non-professional furnished landlord (LMNP).
Also read: LMNP or LMP: statuses and differences
Depending on the tax regimes, by default, you are also subject to the micro-BIC regime if your rental income is below 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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The Mobility Lease
The mobility lease is designed for individuals considered mobile: students (higher education, internship, apprenticeship contract), in professional training, on a temporary mission, 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 may request 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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Thinking About Short-Term Rental?
Have you considered the possibility of renting your property for a short period (short-term rental)? Many advantages favor short-term rentals, such as higher rents and no risk of unpaid rent.
Read this article to 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?
