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Furnished rental: the advantages, the drawbacks and the regulations

Furnished rental: the advantages, the drawbacks and the regulations

A lot of profit is to be made by renting furnished houses or apartments. You can even live off of it by generating significant income.

You can rent a particular accommodation using different means. The upstream presence of equipment in the house has many advantages. We will show you the necessary information of the furnished rental to know.

What advantages do you gain with a furnished rental?

The advantage of the presence of furniture

A furnished and empty accommodation does not have the same values ​​on the market. Indeed, houses that already have furniture inside are more expensive. The initial amount can be raised by around 15 to 30% once the house is furnished. Similarly, there is a good chance of selling your property more easily by betting on furniture. Buyers are more attracted to properties equipped in advance.

Taxable profits are more significant

According to real estate investment players, fiscal advantages are for the benefit of the owner. If you manage to take advantage of it, you get capital gains. The reports to be won on the taxation of furnished real estate are more important than income taxes.

The legal law concerning the LMNP

This law makes it possible to reduce or even cancel your taxation according to your decision concerning the choice of your status. Indeed, this regulation is validated in the event that the annual profits from the rents are at least 23 euros. Two formulas are available to you, including the micro-BIC plan and the tangible plan.

Reduction in vacation rentals

You will resort to more profitability in real estate rental if your house is always occupied by tenants. Clients in this type of real estate are commonly students, business travelers and vacationers. This is why furnished real estate rental increases its profitability.

A tax-efficient investment

Furnished rentals expose a more captivating taxation than a bare house. A furnished lease is determined by the tax administrative law as being BIC income. By developing, it is about Industrial and Commercial Profits, far from a land constraint.

What are the downsides?

Disadvantages for tenants

Most of the people who rent a furnished property are often people who stay only a few months. In other words, they do not stay long to live there. On this, a frequent change of tenant could be observed. Furniture maintenance will be more delicate and may require additional costs. Moreover, if you choose your donors well, you can obtain additional benefits.

Furniture: extra charges

Renting a house already full of furniture attracts a lot of people. Knowing the flaws concerning this type of investment is essential. For this, you must make sure to take into account faults to risk. For this, the lease term must be greater than or equal to one year, and nine months for a student.

Rules to know

The BICs

Thanks to this scheme, the owners withdraw the rents via the charges from the lessor. On this, do not forget to make the declaration of your furnished rental. In order to be able to take advantage of fiscal advantages, the declaration must be made. The rented room must reside inside your primary location. The cost of the rental must be approvable according to the rents appropriate to the values ​​of your property.

LMP and LMNP

Two types of furnished rentals exist, of which the furnished rental Professional as well as the  non-professional furnished rental. Rental deficits for residents in a non-business rental can be carried forward for approximately 10 years.

Conclusion

During your investment, decide whether you want a furnished or bare home. However, the choice should be easy for you, as everything you need to know has been covered.

source: https://www.parisattitude.com/fr/proprietaire/gestion-immobiliere-locative.aspx

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