Furnished tenancy agreement
A tenancy agreement for a property equipped with sufficient furniture for normal habitation. Minimum duration is one year (nine months for students). Income from furnished letting falls under BIC (commercial income) rather than property income, giving access to LMNP status and accounting depreciation of the property.
Key points
- Minimum duration is one year, reduced to nine months for student tenants.
- BIC income gives access to LMNP status and accounting depreciation of both property and furniture.
- The property must include sufficient equipment for normal habitation, as defined by decree.
- The tenant's notice period is one month, versus three months for an unfurnished tenancy.
Frequently asked questions
What are the tax advantages of a furnished tenancy compared to an unfurnished one?
Furnished letting falls under BIC, allowing the landlord to opt for the actual-cost regime and deduct depreciation of the property, furniture, and works. This can fiscally neutralise rental income for several years. Unfurnished letting generates property income, where depreciation is not deductible.
How do banks factor furnished rental income into borrowing capacity calculations?
Banks typically apply a haircut to declared BIC income, often around 30–40%, to account for expenses and vacancy risk. Some banks retain net collected rents without additional haircut if the activity is established and stable. The broker checks the method applied by each partner lender.
What is the difference between a standard furnished tenancy and a mobility lease?
A standard furnished tenancy has a minimum one-year term and renews tacitly. A mobility lease is capped at 10 months, non-renewable with the same tenant in the same situation, and requires no security deposit. The mobility lease targets specific profiles in professional or student mobility situations.
In practice
An investor rents out a furnished studio for €800/month. Under the LMNP actual-cost regime, annual depreciation of the property and furniture exceeds rents received, allowing them to declare zero BIC profit for several years.
Official sources
- Rules for renting a furnished dwelling · Service-Public.gouv.fr
- Housing and financing information · ANIL
- Mortgage credit (official guide) · Service-Public.gouv.fr