What profitability to expect from a furnished rental?

Profitability is one of the main criteria for an investor. Furnished rentals are distinguished by a gross profitability generally higher than that of a bare rental.

Higher rents

On average, a furnished apartment can be rented for 10 to 20% more than an empty apartment of the same surface area. This difference is due to the comfort offered and the flexibility of the lease.

Strong rental demand

Furnished rentals attract:

Students looking for short or medium-term housing.

Young workers in professional mobility.

Expatriates returning to France for a specific period.

This diversity of tenants guarantees sustained demand in large cities and tense areas.

Net profitability optimized by taxation

With the real LMNP regime, the depreciation of the property allows neutralizing a part of the taxable land income. Result: a net profitability after taxes greater than the bare rental.

Concrete example

A studio purchased 120,000 € in the city center, rented 650 €/month furnished instead of 550 €/month naked, generates about 1,200 € of additional income per year. Add to this the tax savings thanks to the real regime, and the difference becomes significant.

Conclusion

Furnished rentals are an excellent lever to improve the profitability of a rental investment. Between higher rents and advantageous taxation, it is an attractive strategy for investors.