Furnished rental or nude rental: what choice for a real estate investor?

The question of choosing between furnished and nude rentals arises for many investors. These two strategies present major differences in terms of taxation, profitability and management. Understanding their specificities allows determining which option best suits its heritage objectives.

Assets of the furnished rental

Furnished rentals allow for higher rents – on average 10 to 20% higher than bare rentals. It particularly appeals to students, young professionals and people in professional mobility, which ensures a strong rental demand in tense areas.
On the tax side, the LMNP status (Renter in Furnished Non-Professional) allows to benefit from the micro-BIC scheme (50% allowance) or the real regime (deduction of expenses and depreciation of the property). The latter can even allow for the total elimination of taxation on rents over several years.

Advantages of renting naked

Bare leasing is based on three-year leases, offering valuable rental stability for investors who prioritize security. It often attracts family clientele, more inclined to stay for the long term, which reduces turnover and management costs.
Taxation, on the other hand, is less favourable: rents are taxed in the category of land income, with the possibility of deducting certain charges and works, but without depreciation of the property.

Comparison of rental management

Furnished rentals involve more time-consuming management, as tenants change more often and the furniture must be kept in good condition. On the other hand, naked rental requires less follow-up and offers more tranquility to the owner.

Which choice for which investor?

Investor seeking profitability: the furnished rental is more suitable thanks to its higher rents and advantageous taxation.

Investor seeking stability: bare leasing is more secure and requires less management.

Diversified investor: combining the two strategies can be judicious: renting furnished studios in the city center, and naked family apartments on the outskirts.

Conclusion

The choice between furnished rentals and nude rentals depends above all on the investor’s wealth strategy. Those who want to maximize their yield will opt for the furnished, while those who prefer stability will choose the nude. The ideal remains to diversify one’s housing stock in order to benefit from the advantages of both schemes.