In summary
| Section 🌟 | Details |
|---|---|
| Definition of a furnished rental 🏡 | A housing unit equipped for immediate living, generally intended for long stays (main or secondary residence). |
| Minimum required furniture 🛋️ | Complete bedding, shutters or curtains, cooktops, refrigerator, kitchen utensils, table and chairs, cleaning equipment. |
| Regulations 📜 | One-year lease contract (or 9 months for students), 3-month notice for the landlord, one-month notice for the tenant, legal obligations such as the Energy Performance Certificate (EPC). |
| Advantages for the tenant 👍 | Immediate move-in, no furniture purchase costs, flexible lease with reduced notice period. |
| Advantages for the owner 💰 | Higher rent, tax benefits (depreciation, choice between micro-BIC or actual regime). |
| Disadvantages for the tenant ⚠️ | Higher rent, furniture imposed by the owner, limited personalization. |
| Disadvantages for the owner ⚠️ | High initial investment cost, more complex management, higher tenant turnover rate. |
| Definition of a tourist furnished rental 🌍 | Furnished accommodation for short stays (max. 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 deduction if classified, better visibility on rental platforms. |
| Disadvantages ⚠️ | Lengthy and costly classification process, intensive management, potential restrictions in certain cities. |
| Comparison of main characteristics 📊 | Rental duration, usage, lease contract, declaration to the town hall, furnished classification, notice period for termination, tenant frequency. |
| Comparison of fiscal regimes 💼 | Micro-BIC deduction (50% for furnished rental, 71% for tourist furnished), income ceiling, advantageous taxation, recoverable VAT. |
| The best profitability 💹 | Steady and consistent income for furnished rentals, high seasonal profitability for tourist furnished rentals, but unstable throughout the year. |
| Main differences 🔍 | Rental duration (long vs short term), fiscal regime (deduction, advantageous tax), rental flexibility. |
If you own a property and are considering renting it out, you need to understand the difference between furnished rental and tourist furnished rental. Although they share some 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 housing offered for rent that 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 equipment, a furnished rental already contains all essential elements, such as furniture, appliances, and kitchen utensils. The goal is for the tenant to live there without having to invest in furniture or additional equipment. Generally, furnished rentals are chosen for long-term stays, whether for a primary or secondary residence.
The minimum furniture required for a furnished rental is defined by law. According to the Alur law (Access to housing and urban renewal), the property must contain at least:
- A full bedding set (including duvet or blanket),
- Shutters or curtains in bedrooms,
- Cooktops 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 housing is higher, especially by students, traveling professionals, or expatriates.
Regulations
The furnished rental is regulated by specific rules in France. The lease must have a duration of at least one year and is tacitly renewable annually. This duration can be reduced to 9 months for student rentals, and in this case, the contract is not automatically renewable. The landlord can terminate the contract but must respect a three-month notice if they want to end the lease (compared to six months for an empty rental).
The tenant, in turn, can also give their notice of departure at any time, respecting a one-month notice period. This flexibility in notice periods is one of the major advantages for tenants in furnished rentals. The rental contracts must also comply with certain legal obligations such as the energy performance diagnosis (EPD), the habitable surface area certificate, and the building’s internal regulations.
It should be noted that if the owner wishes to end the rental to repossess the property for legitimate reasons, they must provide a valid reason, such as personal use of the property or sale of the dwelling. In all cases, the rules applicable to furnished rentals ensure a certain protection of tenant rights.
Advantages and disadvantages
Advantages for the tenant
One of the main benefits for the tenant is the opportunity to move into a completely furnished property, reducing stress and costs associated with buying furniture. This is particularly advantageous for people needing temporary accommodation, like students or professionals on assignment. Furnished rentals also offer the tenant greater flexibility with regard to lease management, thanks to the short notice period of one month. This type of rental is therefore ideal for those in transition or who prefer not to be burdened with furniture that they will later have to transport.
Advantages for the owner
For landlords, a furnished rental offers several financial advantages. The rent may be higher than for an empty rental because the property is offered with all necessary equipment. Additionally, the non-professional furnished landlord status (LMNP) allows the owner to benefit from certain tax advantages, such as depreciation on furniture and equipment, thereby reducing taxable rental income. There is also the option to choose between the micro-BIC regime (with a flat 50% deduction) or the actual regime (allowing deductions of expenses and depreciation from taxable income).
Disadvantages for the tenant
However, furnished rentals can also have some disadvantages for tenants. The rent is often higher than for an empty property, representing an added cost. Furthermore, since furniture and equipment choices are imposed by the owner, tenants cannot fully personalize their living space according to their preferences.
Disadvantages for the owner
From the landlord’s perspective, the main disadvantage lies in the obligation to invest in furniture and equipment to comply with regulations. This entails higher initial costs and more complex management of maintenance of equipment. The owner is responsible for any malfunction or replacement of equipment, which can incur additional expenses over time. Additionally, the tenant turnover rate is often higher in 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 a traditional rental, this type of property is specifically reserved for tenants who do not establish residence there. Indeed, a tourist furnished rental cannot be used as a primary residence. It can include various types of housing, such as houses, apartments, studios, or villas. These accommodations are often rented for vacations, professional stays, or any other reason requiring temporary lodging.
Stay durations in a tourist furnished rental are generally limited to a maximum of 90 consecutive days for the same tenant, but there is no limit on the number of different tenants over a year. Moreover, this type of rental is often used by owners to profit from their secondary residence when they are not occupying it themselves.
Regulations
Tourist furnished rentals are subject to strict regulations. 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 an registration number, to be included on all rental advertisements.
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 consent from the town hall to transform their property, initially intended for habitation, into a short-term rental for tourism. This measure aims to regulate the real estate market and limit the impact of tourist rentals on the supply of long-term housing.
In addition to the mandatory declaration, tourist furnished rentals can be classified. This classification is based on strict standards and is voluntary. It grants a star rating from 1 to 5, based on the quality of equipment, services offered, and comfort of the property. This classification is validated by accredited organizations after an evaluation and is valid for a 5-year period.
Advantages and disadvantages
Advantages
One of the key advantages of a tourist furnished rental is the flexibility it provides. Owners can rent their property for short durations, making it ideal for holiday periods or seasonal demand. As a landlord, you can easily adjust your rates according to the season (peak or off-peak), thereby maximizing income.
Another notable benefit pertains to taxation. A classified tourist furnished rental allows for a 71% tax deduction on rental income, compared to 50% for a regular furnished rental. This deduction is especially advantageous if your rental income does not exceed 176,200 euros annually. It means only 29% of rental proceeds will be taxable, significantly reducing the tax burden.
Finally, being classified as a tourist furnished property can improve visibility on rental platforms like Airbnb or Abritel, where classified properties are often highlighted 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 property also presents certain drawbacks. Firstly, the classification process can be lengthy and complex. It involves engaging an accredited organization to evaluate the property according to clearly defined criteria, ranging from available amenities to property accessibility. If modifications or improvements are needed to meet classification standards, this can entail significant costs for the owner.
Moreover, although short-term rentals are more flexible, they require more intensive management. The owner must manage numerous tenants throughout the year, involving tasks such as welcoming guests, regular maintenance, handling check-ins and check-outs, and equipment upkeep. Some owners choose to delegate these tasks to a management service or specialized agency, but this entails additional costs that can reduce overall profitability.
Finally, in certain cities, tourist furnished rentals are tightly regulated, and municipalities may impose limitations on the number of days the property can be rented out. Non-compliance with such restrictions can result in significant financial penalties.
Comparison of main characteristics
| Criterion | Furnished rental | Tourist furnished rental |
|---|---|---|
| Rental duration | Long-term (1 year, 9 months for students) | Short-term (max. 90 days for the same tenant) |
| Usage | Primary or secondary residence | Exclusively for tourists, not a primary residence |
| Lease contract | Standard contract, renewable | Flexible rental, non-renewable |
| Declaration to the town hall | Not required | Mandatory |
| Classified furnished property | Not applicable | Possible, with tax advantages |
| Notice period for termination | 3 months for landlord, 1 month for tenant | Not applicable (short durations) |
| Tenant turnover frequency | Low turnover | Frequent turnover |
Comparison of fiscal regime
| 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 |
| Favorable taxation (classification) | Not applicable | Yes, with classification |
| Recoverable VAT | No | Yes, if classified as tourist furnished rental |
The highest profitability
| Criterion | Furnished rental | Tourist furnished rental |
|---|---|---|
| Type of rental | Long-term (primary or secondary residence) | Short-term (touristic, not primary residence) |
| Average monthly income | Stable but slightly lower | Higher during peak season |
| Potential annual income | Moderate and stable (regular income) | Fluctuating (high tourist periods, low season dips) |
| Occupancy rate | Stable and high (throughout the year) | Variable depending on seasonality |
| Price per night or week | Not applicable (monthly rent) | Higher, especially in peak season |
| Management costs | Lower (low rotation, less cleaning) | Higher (frequent turnover, check-ins/check-outs, regular cleaning) |
| Concierge fees | Unnecessary or low | Often necessary to manage frequent arrivals/departures |
| Utilities (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 steady income over the long term | High profitability in peak season but unstable throughout the year (seasonality dependency) |
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 duration. A furnished rental can be leased for a long period, without any specific restrictions, whether for primary or secondary residence. It is thus possible to rent a furnished property for several months or even years. This flexibility allows tenants to establish residence in the rented property and stay long-term.
In contrast, a tourist furnished rental is reserved for short stays. The law limits consecutive 90 days for the same tenant, making it an ideal option for tourists or passing travelers. The tourist furnished rental is therefore intended for temporary occupation and cannot be used as primary residence under any circumstances.
Fiscal regime
From a tax perspective, both types of rentals are taxed under the category of industrial and commercial profits (BIC), meaning that the income generated must be declared as commercial income. However, there is a notable difference 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. Indeed, a classified tourist furnished rental allows for a flat 71% deduction, meaning only 29% of the rental income is taxable. In comparison, a non-classified furnished rental is subject to a 50% deduction under the micro-BIC regime. This difference makes classifying a property as a tourist furnished rental particularly attractive for owners seeking to optimize their taxes.
Flexibility
Regarding flexibility, a tourist furnished rental offers greater freedom to owners, notably because they can rent the property for short periods. The stays can last a few days, weeks, or months, depending on tourist demand. This allows owners to adjust prices based on seasonality and demand. Short-term rentals are especially suitable for tourist hotspots where demand fluctuates significantly.
Conversely, a furnished rental is typically aimed at long-term tenants seeking durable housing, such as for a primary residence. This type of rental is less flexible regarding tenant turnover but offers greater stability for the owner, with renewable annual leases. The lower tenant rotation also reduces the need for frequent management.
Conclusion
In summary, the decision between a furnished rental and a tourist furnished rental will depend on your objectives as an owner. If you aim to maximize your income with short-term stays, a tourist furnished rental is an ideal choice. However, for more stable rentals, a furnished rental remains a reliable solution.
