What is a furnished rental and what are its characteristics?

Furnished rentals are a type of rental lease where the dwelling is made available with enough furniture to allow the tenant to live there immediately. Unlike bare rental, the accommodation must contain a certain number of mandatory equipment defined by decree (bed, table, seats, hobs, refrigerator, dishes, etc.).

Legal definition

According to the law of 6 July 1989, a dwelling is considered furnished if it is equipped in such a way that the tenant can live there properly from the moment he enters. This involves not only essential furniture, but also basic household appliances.

Duration of the lease in furnished rental

The duration of the lease is shorter than for bare rental:

One year tacitly renewable.

Nine non-renewable months if the tenant is a student.

This more flexible framework particularly attracts students, young professionals and people in professional mobility.

Benefits for the investor

Rents higher than in a bare rental, because the housing is ready for use.

Contractual flexibility with a shorter lease and easier housing repossession.

Advantageous taxation in LMNP (Renter in Furnished Non-professional), allowing to amortize the property and reduce taxes.

Disadvantages to take into account

More frequent rotation of tenants, which increases management and the rental vacancy.

Obligation to maintain the furniture, involving additional costs.

Conclusion

Furnished rentals are an excellent choice for investors wishing to increase their rental profitability and benefit from advantageous taxation. It is particularly aimed at those who target student or tense areas where demand is high.