Photo via UnsplashIn brief:
- Furnished rentals command rents 10 to 20 percent higher than unfurnished in major cities.
- Furnished lease is 1 year renewable (9 months for students), versus 3 years for unfurnished.
- The French LMNP regime allows near tax-free rents via property depreciation.
- Vacancy rates are higher in furnished rentals (faster tenant turnover).
Unfurnished or furnished rental: key differences
The choice between unfurnished or furnished rental directly affects rent, taxation and tenant stability. The two legal regimes meet different needs depending on landlord and target tenant profiles.
The legal framework
Unfurnished rental falls under the 6 July 1989 French law with a 3-year lease (6 years for corporate landlords). Furnished rental has its own regime with a 1-year lease (9 months non-renewable for students).
Unfurnished vs furnished comparison
| Criterion | Unfurnished | Furnished |
|---|---|---|
| Lease duration | 3 years | 1 year (9 months student) |
| Security deposit | 1 month rent | 2 months rent |
| Average rent (gap) | Reference | +10 to 20 percent |
| Tenant notice | 3 months (1 month tight zone) | 1 month |
| Landlord notice | 6 months | 3 months |
| Main tax regime | Unfurnished income | BIC (LMNP) |
Comparative taxation
“The LMNP regime is one of the most advantageous in the French tax system. Property depreciation neutralizes rental income tax for 20 to 30 years.” — French National Real Estate Federation
Furnished rental falls under BIC (Industrial and Commercial Profits) and opens the LMNP status with property depreciation. Unfurnished rental is taxed on unfurnished income (micro with 30 percent deduction, or real).
Drawbacks to know
- Furnished: higher tenant turnover, more frequent vacancies
- Furnished: mandatory equipment list (2015-981 decree)
- Unfurnished: less favorable taxation for the landlord
- Unfurnished: 3-month tenant notice (1 month in tight zones)
Steps to choose
- Identify target tenant profile (student, young professional, family)
- Simulate net income under each tax regime
- Assess rental tension in the area
- Calculate equipment costs for furnished
- Arbitrate by goal (yield vs stability)
For deeper taxation insights, see our real estate investment taxation guide. For financing a rental property, see the home loan financing guide. And to start, the rental investment beginner guide gives all the keys.
Frequently asked questions
Unfurnished or furnished: which is more profitable?
Furnished rental generally commands rent 10 to 20 percent higher and offers a more advantageous taxation via LMNP. However, tenant turnover is higher and equipment costs reduce margins. Net profitability often converges, with a slight advantage to furnished in high-demand areas.
Which furniture is mandatory in furnished rental?
The 31 July 2015 decree lists 11 mandatory items: bedding with duvet, window darkening device in bedrooms, cooking hotplates, oven or microwave, refrigerator with freezer, dishes, kitchen utensils, table and seats, shelving, lighting and appropriate maintenance equipment.
What lease duration for a furnished rental?
Standard furnished lease is 1 year tacitly renewable. For a student tenant, a specific 9-month non-renewable lease is possible. The mobility lease (1 to 10 months) targets students, trainees and professionals on assignment.