Property management in Paris: unfurnished or furnished rental?
In Paris, property management is a key issue for owners looking to make their properties profitable while avoiding administrative constraints. Whether you opt for an unfurnished rental or a long-term furnished rental, our property management agency in Paris is here to assist you and optimize the management of your real estate assets.
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Advantages and disadvantages of furnished or unfurnished rentals in Paris
When choosing a property management agency in Paris, you must decide between renting furnished or unfurnished, as each option has its advantages.
Furnished rentals: Advantages for landlords
Higher profitability: In Paris, furnished properties can be rented for 10% to 20% more than unfurnished rentals.
Contract flexibility: Furnished rentals allow for shorter contracts, ideal for professionals or expatriates.
Attractive tax benefits: Furnished rentals enjoy tax advantages under the LMNP or LMP schemes.
Unfurnished rentals: Advantages for landlords
Regular income: Longer rental periods guarantee stable long-term income.
Reduced maintenance costs: Without furniture and equipment to manage, maintenance is minimal.
Less turnover: Tenants tend to stay longer, reducing costs related to finding new tenants.
The tax benefits of furnished rentals in Paris
By choosing a furnished rental, you can benefit from considerable tax advantages. Here are the main tax options for property owners.
The LMNP scheme (non-professional furnished rental)
This scheme allows you to declare your rental income under the BIC regime (industrial and commercial profits). Two tax options are available:
Micro-BIC scheme: Benefit from a flat-rate allowance of 50% on your income.
Real regime: Deduct all expenses and depreciate the property to reduce or even cancel the tax on your rental income.
How to achieve tax-free rental income with the real regime?
By opting for the real regime, you can deduct several types of expenses (loan interest, maintenance costs, etc.) and depreciate the value of your property and its furniture, allowing you to neutralize your rental income for tax purposes.
The LMP status (professional furnished rental)
To become a professional furnished rental landlord (LMP), certain conditions must be met, including having rental income exceeding €23,000 per year. This status offers additional tax benefits but is mainly aimed at landlords with a significant real estate portfolio.
How to optimize an unfurnished property for rent in Paris?
Unfurnished rentals offer stability and regular long-term income. Here is how to optimize your property to attract tenants in Paris.
Voici les principales options fiscales pour les propriétaires.
A well-maintained property: The property must be in perfect condition to appeal to long-term tenants. Regular maintenance of installations (plumbing, electricity, heating) and a modernized interior will reduce vacancy periods.
Essential equipment: Even when unfurnished, a property should offer functional equipment. Ensure that the kitchen and bathroom are in good condition, and that essential installations such as heating, doors, windows, and appliances are reliable.
Increase the attractiveness of an unfurnished property: To maximize appeal, renovations (kitchen, bathroom) can make a difference. Our property management agency in Paris offers renovation services to modernize your property and increase its rental value.
Property owner in Paris: furnished or unfurnished property management?
Our property management agency in Paris is available to advise you.
Frequently asked questions from property owners about property management in Paris
For a lease under the Civil Code (corporate lease or tenant’s secondary residence), the minimum duration is three months, with the possibility of extension. For a lease subject to the ALUR law (tenant's main residence), the duration is one year renewable, while an unfurnished rental is set at three years, or even six years if the owner is a company.
The choice between a furnished and unfurnished rental depends mainly on your needs, your investment project, and the type of tenants you are targeting.
Rental duration:
Furnished rentals mainly attract companies, expatriates, students, or professionals on temporary assignments.
The rental period is more flexible (minimum 3 months up to 12 months renewable). Unfurnished rentals are more suitable for very long rental periods and generally attract families or tenants looking to settle down long-term.
Profitability and taxation:
Furnished rentals are often more profitable, as rents are higher. Moreover, the status of non-professional furnished landlord (LMNP) offers interesting tax advantages, such as depreciation of the property and furniture.
Unfurnished rentals, while rents are often lower than furnished ones, offer rental stability that can offset this difference.