Rental: how to rent furnished? | Editorial SeLoger logo_header

RentBlandine Rochelle08 Nov 2021Share on

Furnished rental meets specific rules, especially since there are different ways of renting furnished accommodation. The accommodation can be used as a main residence, a second home or even be rented out to vacationers. For each of these rentals, the rules that apply may vary, not to mention the taxation that is advantageous for the owner.

What equipment is required for a furnished rental?

To be able to rent a furnished accommodation, certain equipment is essential and enshrined in law. A list of furniture and equipment is fixed by decree. The accommodation must contain:

In addition, the accommodation must also meet the criteria of decency dictated by law, namely a minimum surface area of ​​9 m², the installation of a drinking water point, the possibility of being able to ventilate the rooms of the accommodation, as well as compliant technical diagnostics. The accommodation must have sufficient natural light and only the smallest accommodation may have sanitary facilities located outside the accommodation and may not have a shower or a bath. These are the former service rooms for which the toilets are located on the landing.

When the accommodation does not include all the mandatory equipment, the lease can then be requalified by a judge.

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What are the different types of furnished rentals?

Furnished rentals encompass different forms that give rise to different rental terms.

Renting as a main residence

First, it is possible to rent out the accommodation as the tenant's main residence. This then implies a contract period of one year, unlike the three years which are required in the case of an empty rental and this period is even reduced to 9 months when the accommodation is rented to a student. Similarly, the period of notice in the event of leave on the part of the tenant is one month, whereas it is three months in the case of empty rentals. In the same vein, an owner wishing to recover his accommodation is also given a notice period of 3 months, whereas it is 6 months for empty rentals.

The mobility lease

The ELAN law of 2019 introduced a new short-term rental lease called the mobility lease. This lease is signed as part of a furnished rental, but its duration must be between 1 and 10 months. It can only be offered to a certain profile of tenants, namely people in vocational training, in higher education, on an apprenticeship contract, on an internship, on a voluntary commitment as part of a civic service, on a professional transfer , on temporary assignment, etc. The duration of the lease can be modified once by amendment to the contract, but the total duration of the rental must not exceed 10 months. The tenant can terminate the mobility lease at any time but must give one month's notice of departure.

Furnished tourist rental

It is possible to rent furnished accommodation to vacationers. It is then a furnished tourist accommodation. The rental must not last more than 90 days and the content of the contract is specific to this type of rental. We do not apply notice of departure in the context of a tourist rental, and it is generally customary to ask the tenant for the payment of a deposit, a sum which acts as an advance on the reservation but which cannot exceed 25% of the total rental price.

Furnished rental as a second home

Furnished rental as a second home entails more flexible rules because this lease is governed by the Civil Code and many elements are freely negotiated and decided between the tenant and the owner.

The amount of the security deposit for a furnished rental for use as a main residence is set at two months' rent excluding charges.

Furnished rental: what taxation?

Furnished rentals are known to be fiscally advantageous for the owner, insofar as they depend on the BIC tax regime (industrial and commercial profits) and not on property income as with empty rentals. There are two types of tax regimes:

The micro-BIC diet

The micro-BIC regime which applies automatically if the declarant's income from rentals does not exceed €72,600 for residential rentals and €176,200 for rentals of guest rooms and furnished tourist accommodation . Whether he has the status of LMNP (non-professional furnished lessor) or LMP (professional furnished lessor), the lessor then declares the amount of the sums collected for the rental and benefits from a 50% reduction if he is are residential rentals and 71% for guest rooms or furnished tourist accommodation.

The actual diet

The real regime remains the most advantageous tax regime, insofar as it allows the creation of an accounting deficit after having deducted the charges and the amortization of the rents collected. This regime applies by default when the declarant's rental income exceeds €72,600 or €176,200 depending on the type of rental. But the simplified real regime is also automatically applied below these thresholds when:

With the real regime, all expenses and charges associated with the property and its rental can be deducted from the declared income. It is therefore possible to deduct the amount of property tax, maintenance and repair bills, housing equipment, insurance costs, loan interest, co-pro charges, travel expenses for return to the general meeting, management fees, etc. But we can also deduct the depreciation of furniture, works and real estate. This tax system therefore makes it possible to significantly reduce the taxable amount, or even bring it to zero.

The furnished rental lease is not automatically renewed tacitly when it is rented for 9 months to a student.