Furnished rentals are the new trend that appeals to investors. It is the reference solution for a successful rental investment because it has many advantages. Investing in furnished tourist accommodation allows you to benefit from higher profitability, reduced tax regimes and, incidentally, a reduction in rental vacations.
High profitability
Thanks to the many rental management platforms currently available on the market, furnished rentals are on the rise. This type of rental offer has experienced a real boom in recent years. And it continues to attract more, both owners and tenants. On the one hand, investors generally receive rents 10 to 30% higher compared to long-term rentals. And even with the new law that limits furnished rentals to 120 days per year, landlords still come out on top.
Flexible tax regimes
Rental investment only bears fruit when it comes to a favorable tax regime. In the case of a furnished rental, the investor has the status of non-professional furnished rental (LMNP). Also, he declares his income in the category of industrial and commercial profits (BIC).
-
The micro-BIC diet
The simplified micro-BIC regime applies up to a threshold of 70 euros in annual revenue. The owner also benefits from a flat-rate reduction of 000% on his rental income. And this, without necessarily having to justify its sources of income. Besides, the standard allowance for rental income from an unfurnished property is only 50%.
-
The real simplified regime
The actual costs should be declared when the rented furnished property generates significant costs. However, the owner can still deduct certain costs from his rental income. Namely the costs of notary, maintenance, repair, management and insurance, depreciation of furniture, local taxes or even loan interest. This scheme is certainly more sophisticated than the micro-BIC because it requires the owner to keep accounts. But it is a perfect solution to deduct a large part of the costs or even to charge them over the following years in the event of a deficit, so as to gradually reduce its taxation.
Increasing demand
More and more travelers are interested in tourist accommodation. They are perfect for tourists who want to fully enjoy a stay in tourist areas, without spending a fortune. And furnished rentals have the advantage of offering both an all-in-one accommodation service at a reasonable price compared to hotels.
For his part, the owner can very easily find a tenant thanks to the various online rental management platforms (Airbnb, Abritel, Booking, etc.). Thanks to these services, the risk of non-payment is reduced to nothing, tenants benefit from a service guarantee whose platforms will ensure compliance with the announcements published by the owners. Finally, furnished tourist accommodation is also of interest to digital nomads who wish to take advantage of their mobility to visit other countries while working.
