At 30, you think you still have time. And then, overnight, you find yourself dealing with “adult” problems. Among them: investing in real estate. Like most young people my age, renting out a property is a major solution. Faced with this decision, a first question automatically arises: renting empty or furnished? After weighing the pros and cons, furnished rentals became obvious. Let’s take stock of the advantages of furnished rentals.
Furnished accommodation is: “a dwelling equipped with furniture in sufficient quantity and quality to allow the tenant to: sleep, eat and live in good conditions”. The list of furniture present in the accommodation is set by decree no. 2015-981 of July 31, 2015. In a furnished rental, you must therefore find:
Are you still hesitating to take the plunge? Know that furnished rentals have considerable advantages. This is also the main reason for my choice. Investing in a rental is not a decision to be taken lightly. To help you, here are the benefits to know before signing a lease.
It’s a fact: the lease contract for a furnished rental is much more flexible than the lease contract for an empty rental. And for good reason, the first is concluded over a period of 1 year, while the second goes up to 3 years. Another point to take into account: the furnished rental lease can be reduced to 9 months if the property in question is rented by a student. It is, therefore, the ideal solution for tenants in these situations:
The flexibility of the contract is also felt at the level of the duration of the notice of the rental lease. Indeed, in the furnished rental, this duration is much shorter than in the bare rental. This clause is particularly advantageous because you have 1 month’s notice to be able to leave your accommodation. As for the tenant, he has 3 months to recover his property at the end of the lease. Given my professional and personal situation, this lease contract appeared to be the most interesting. All these parameters make it very easy to find tenants. Moreover, the demand is steadily increasing.
Of course, the furnished lease also has significant tax advantages. And for good reason, you can take advantage of reductions, or even tax exemptions. There are, however, certain obligations to be observed. In furnished rentals, income is not considered to be property income. In this case, they will be considered as income from commercial activity. Consequently: income from furnished rentals is taxable in the category of Industrial and Commercial Profits or BIC. This is where all the benefits come from.
Depending on the tax system of your choice, be aware that as a tenant, you can also reduce the taxation of your income from your furnished rental. For more information on the tax benefits you can benefit from, I invite you to read this article.
Who says furnished rental, speaks of all the equipment and furniture you need to live in good conditions. Don’t have the budget to furnish your home? Or like me, you don’t necessarily want to invest in furniture before buying real estate? Then a furnished rental is the ideal solution for you. Indeed, in order to be qualified as “furnished rental”, the accommodation must be equipped with all the equipment and accessories governed by article 25-4 of the law of July 6, 1989 modified by the ALUR law n ° 2014- 366 of March 24, 2014. Therefore, even if you are not yet equipped, you can sleep, eat, shower and live on a daily basis, in the best conditions. But beware, it is important to specify that the furniture and equipment in the accommodation does not belong to the tenants. The latter must therefore ensure that they are intact throughout the rental. Before terminating the rental contract, the owners make an inventory. In case of breakage, loss or damage to the goods, the tenants will have to replace or pay compensation to the owner. So you have no risk to take.
Last but not least: investing in a furnished rental is the best way to be serene throughout the duration of the lease contract. And for good reason, the relationship between the landlord and the tenant is defined on several points and on different levels: