Nude rental or furnished rental: what choice for a real estate investor?

When an investor embarks on rental real estate, a question immediately arises: should we prioritize bare rentals or furnished rentals? These two strategies have distinct advantages and must be chosen based on the property, tax and financial objectives of the owner.

Naked leasing: stability and optimizable taxation

Bare leasing is based on a three-year renewable lease, which provides significant rental stability. Tenants generally stay longer, which reduces rotation and therefore vacation periods.

From a tax perspective, rents are taxed in the property income category. The owner can opt for:

The micro-real estate with a 30% discount if rents do not exceed €15,000.

The real regime, allowing to deduct charges, loan interest, taxes and works. This can generate a land deficit attributable to the overall income, which is a significant advantage for reducing its taxation.

Furnished rentals: gross profitability and flexibility

Furnished rentals attract investors seeking higher gross returns. Rents can be more expensive because the accommodation is equipped, which particularly appeals to students and young working people.

The lease is shorter: one year renewable (or nine months for a student). This brings more flexibility, but also more rental rotation and therefore more management.

From a tax point of view, rents fall under the Industrial and Commercial Profits (BIC) regime, with two options:

The micro-BIC (50% discount).

The real LMNP/LMP, allowing to amortize the property and greatly reduce taxation.

Comparison and strategic choice

Naked rental: ideal for security, simplified management and tax optimization via land deficit.

Furnished rental: suitable for tense or student areas, for a stronger immediate profitability.

Towards a mixed strategy

Many investors choose to combine the two strategies. For example:

A family apartment for bare rental to secure regular income.

A student studio in furnished rental to boost profitability.

Conclusion

The choice between naked and furnished rentals depends above all on the investor’s patrimonial objective: search for security and optimized taxation (nude) or high yield and flexibility (furnished).