Landlords / Guide

Advantages of renting a furnished apartment: what you need to know

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Furnished rental refers to renting a dwelling equipped with the furniture and equipment needed for comfortable living. Unlike unfurnished rentals, where tenants must bring their furnishings, furnished rentals offer tenants the convenience of moving in immediately without the hassle of buying furniture or appliances.

Paris Rental Agency stands out as a reliable expert in furnished apartment rentals in Paris. Paris Rental’s wide selection of quality furnished apartments for rent in Paris, combined with exceptional customer service, makes them an ideal choice for expats, companies, and embassies seeking comfort and convenience.

1. Definition of furnished rental in France

What is a furnished rental in France?

According to the decree of July 31 published on August 5, 2015, to be considered as a furnished apartment rental in France, the rental accommodation must contain a list of mandatory furniture and equipment, including one bed, bedding with comforter or blankets, table, chairs, curtains, lights, storages, as well as the essential elements for preparing meals: household appliances, crockery, and kitchen utensils. Furnished rental contracts can be short-term (seasonal rental) or long-term, with specific rules and benefits varying depending on the contract term.

  Unfurnished Rental Furnished Rental
Lease terms

3 years minimum

1-year minimum 
(9 months if the tenant is a student)

Security deposit

1 month's rent (excluding rental charges)

2 months' rent (excluding rental charges)

Payment of rental charges

By the provision, with an annual adjustment

  • By the provision, with an annual adjustment
  • Or on a flat-rate basis
Owner taxation
  • Income tax: rents must be declared as property income
  • Social security deductions
  • Property tax and ancillary taxes
  • Business property tax (in certain cases)
  • Income tax: rents must be declared as industrial and commercial profits (BIC).
  • Social security deductions
  • Property tax (and ancillary taxes)
  • Business property tax (in certain cases)
  • Social security contributions (in certain cases)
Tenant-initiated lease termination

Tenants can leave at any time by giving a leave notice one or three months in advance, depending on the city.

Tenants can leave any time by giving a leave notice one month in advance.

Owner-initiated lease termination
  • The owner can terminate an unfurnished lease at the end of the lease for one of the authorized reasons (repossession to live in, repossession to sell, or for a severe and legitimate reason).
  • If it's during the lease period, the owner must give the notice to leave at least six months in advance.
     
  • The owner can terminate a furnished lease contract at the end of the lease for one of the authorized reasons (repossession to live in, repossession to sell, or severe and legitimate reasons).
  • The owner can also terminate the lease during the lease period at least three months in advance.
     

2. Financial benefits of furnished rental for owners

Higher rental revenues with furnished rentals

Rent prices of furnished apartments are generally 10% to 30% higher compared to unfurnished apartments. This benefit of higher rent is particularly noticeable in rent-controlled areas. In rent-controlled regions, the reference rent used to calculate the rent cap is higher for furnished accommodation, enabling landlords to maintain revenue.

Favorable tax regime for owners of furnished rentals in France

What's more, in France, owners of furnished rentals can benefit from an advantageous tax regime, including the status of LMNP - non-professional renter (loueur en meublé non-professionnel) or LMP - professional renter (loueur en meublé professionnel), which can lead to tax reductions and other tax advantages.

Tax benefit of LMNP - Micro BIC: 

Under the micro-BIC scheme, as a non-professional renter, you can benefit from a 50% tax deduction on your revenue if your annual rental income does not exceed €70,000.

Tax benefit of LMNP - régime réel:

As a non-professional tenant, you can deduct all rental expenses (including mortgage interest, rental repairs, property management expenses, etc.) under the "régime réel" scheme.

Tax benefit of LMP - Micro-BIC: 

Under the Micro BIC scheme, as a professional rental operator, you can benefit from a flat-rate reduction of 50% if your annual rental income is below €70,000, which means only half of your rental income is subject to tax.

Tax benefit of LMP - régime réel:

Under the "régime réel" regime, as a professional tenant, you can offset various rental expenses against your overall taxable income, including mortgage interest, maintenance and repair costs, social security contributions, accountancy costs, etc., to significantly reduce your tax liability.

3. How does Paris Rental ensure maximum rental return for owners of furnished apartments?

Paris Rental Agency offers optimized returns for owners of luxury furnished apartments in Paris through several specialized strategies and services:

High-profile clientele: 
Paris Rental targets quality customers, including expats, corporate clients, multinational companies, and embassies.

Complete management: 
Paris Rental's Home Management subsidiary offers comprehensive rental Property Management, including maintenance, key management, equipment monitoring, and tenant relationships. This way, apartments are always in perfect condition, translating into positive reviews and a loyal clientele.

Furnishing advice: 
Paris Rental's experts advise owners on interior design and equipment to optimize the property's appeal to tenants. A well-designed interior can justify higher prices.

Quality customer service: 
Paris Rental offers high-quality customer service, answering the phone and responding to tenants' problems in their landlords' absence. Our team’s presence encourages customers to recommend Paris Rental and their rented apartments.

4. Flexibility in furnished rental contracts in France

A shorter lease term for a furnished rental 

The lease term of a furnished rental contract is generally one-year renewable, which is shorter and more flexible compared with the three-year mandatory lease term for an unfurnished lease. The advantage is that the owner can take over the apartment for themselves or a family member.
The one-year rental period is reduced to nine months for student leases. It is also possible to do improvement work with more flexibility between rentals. Also, the one-year rental period is reduced to nine months for student leases.

A security deposit of two months of rent for a furnished rental

Landlords can request a two-month rent security deposit for a furnished rental -instead of one month's rent for an unfurnished property- to secure their furnishings and appliances.

Shorter leave notice period for a furnished rental 

The notice period for leave is also shorter for tenants and owners of furnished rentals. The tenant can leave their furnished apartment rental at any moment by giving a leave notice one month in advance without giving a justification, compared with three months of leave notice for an unfurnished rental (one month in a tense market). On the other hand, landlords have three months' notice to terminate a furnished lease rather than six months' notice for an unfurnished lease.

5. Ready-to-live: an attractive proposition for tenants

What are the advantages of furnished rental apartments for tenants?

  • Convenience: One of the main advantages of renting a furnished apartment is its convenience. Tenants can move in immediately without having to buy and move furniture. This is particularly advantageous for expats coming to Paris for a temporary mission and not wanting to invest in furniture.
  • Cost-Effective: Renting a furnished apartment can be cost-effective in the short term. Buying new furniture can be expensive, and renting a furnished space eliminates this initial financial burden and saves moving costs.
  • Flexibility: A furnished rental apartment is ideal for people or families who are constantly moving, such as professionals on temporary assignments or international students. Renting a furnished apartment makes it easy to move without moving furniture.
  • Time-Saving: Furnished apartments save tenants time and effort, as they don't have to spend hours buying furniture, arranging delivery, and setting up the space.
  • Professional Décor: Furnished apartments are often professionally decorated. Tenants get to live in a space that is aesthetically pleasing and functional.

6. Furnished rentals: Attracting a diverse group of potential tenants 

Furnished rentals in Paris are particularly attractive to a wide range of tenants, including expats, international students, professionals on assignments, and diplomats, because of their comfort and convenience.

Paris Rental offers a variety of furnished apartments to meet the diverse needs of its international clientele. This can include one-bedroom Paris apartment rentals for international students, larger apartments for expatriate families, and luxury accommodations for diplomats and highly qualified professionals.

Paris Rental apartments are mainly located in prime areas of Paris, close to universities for international students, business centers for professionals on assignments, and embassies for diplomats. A convenient location is often a prime factor in attracting these different tenant groups.

Is it worth renting furnished? The answer is yes! Furnished rental apartments offer the ultimate convenience, comfort, aesthetics, and flexibility. 

Paris Rental has been specializing in long-term furnished rental for over 30 years, offering an unparalleled luxury furnished rental experience in Paris. Paris Rental provides an exclusive selection of furnished apartments for rent in Paris, from cozy one-bedroom apartments and generous-sized family apartments to exceptional luxury Paris apartments in Paris' most sought-after neighborhoods, with easy access to local amenities, schools, and business centers. So do not hesitate to contact Paris Rental for your future furnished apartment rental in Paris!

 

Editor: Siyi CHEN

Credit photo @Spacejoy

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