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 have notable differences, both legally and fiscally. This article highlights these distinctions to help owners 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 bedding, window covering devices, cooking plates, refrigerator, dishes, furniture, and cleaning equipment. |
| Unfurnished rental | Must contain no furnished equipment. The mere absence of a single item from the list means it is considered unfurnished. |
Lease Agreements: A Different Contractual Approach
Within the scope of lease agreements, several regulatory distinctions exist between furnished and unfurnished rentals. For unfurnished rentals, only one type of contract is generally required, whereas furnished rentals may be subject to several types of contracts 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 (guarantee possible) |
Notice Period and Lease Termination Procedures
The procedures related to notice periods and lease termination are also different between these two types of rentals. In the case of an unfurnished rental, the landlord must give a notice of six months, 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 zone) |
1 month |
Tax Aspects
Regarding taxation, unfurnished and furnished rentals follow different regimes. Income from unfurnished rentals is considered rental income, and service 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 | Rental 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 rentals. This type of rental offers advantages such as potentially higher rents and less risk of unpaid rent. To explore this option, do not hesitate to consult our practical guide to starting in short-term 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 in managing your real estate assets.
When considering renting 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 an owner 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 setup for the tenant. According to a decree, a rental is considered furnished if it includes, among other items, bedding, devices to block light, cooking appliances, and kitchenware. 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, typically for a duration of 3 years, renewable. In contrast, furnished rentals offer 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 tenant needs.
Security Deposit and Notice Period
Regarding security deposits, landlords need to 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 demanded. As for the notice period, tenants of furnished rentals benefit from a reduced period of one month, compared to one to three months for unfurnished properties, depending on location.
Taxation
Taxation is another significant aspect. Rents from unfurnished rentals are categorized as rental income, and service charges do not require declaration. For furnished rentals, rents are declared under the category of industrial and commercial profits (BIC), which can offer more favorable fiscal options, such as the actual regime or the micro-BIC regime, depending on the income received.
Targeted Tenants
Finally, the type of tenant can influence your decision. Furnished rentals tend to 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?
Case of an Unfurnished Rental
When you rent under unfurnished conditions, the rents correspond to rental income. Declaring your income received during the calendar year is mandatory. Service 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 request to be subject to the actual regime, where you can deduct your expenses.
Case of Furnished Rental
When renting under furnished conditions, the rents received are to 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 income of the household, you are considered a professional furnished landlord (LMP). Otherwise, you are classified as a non-professional furnished landlord (LMNP).
Also read: LMP or LMNP: statuses and differences
Regarding tax regimes, you are also automatically subject to the micro-BIC regime if your rental income is below 72,600 euros. You then benefit from a flat 50% deduction. 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 designed for individuals considered mobile: students (higher education, internship, apprenticeship contract), in professional training, on temporary assignment, in a professional transfer, 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 lease.
No security deposit is required, but the lessor has the right to request a guarantee.
Regarding the notice period, the landlord is not required 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 respected.
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Have You Thought About Short-Term Rentals?
Do the above-mentioned leases fit your needs, or have you considered renting out your property for a short period (short-term rental)? Many advantages come with short-term rentals, such as higher rents and no risk of unpaid rent.
Reading this article will help you 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?
