Advantages of Renting "Location Meublée" in France: A Smart Choice for Property Owners

Renting a furnished property, known as "location meublée," in France offers numerous benefits for landlords, particularly in the South of France where demand for short-term and seasonal rentals remains high. Whether you are a French resident or a foreign property owner, opting for a furnished rental can provide financial, tax, and flexibility advantages compared to unfurnished leases. Here’s why renting "location meublée" can be a great strategy for maximizing your property investment.

1. Higher Rental Income Potential

Furnished rentals typically command higher rent than unfurnished properties. This is especially true in tourist destinations like the Côte d’Azur, Provence, or major cities like Nice and Marseille, where:

• Short-term renters, business travelers, and expatriates are willing to pay more for fully furnished properties.

• Seasonal demand can drive rental rates higher during peak tourist periods.

• Tenants seeking temporary housing prefer the convenience of a furnished home.

By offering a furnished rental, you can attract a wider range of tenants and maximize your revenue potential.

2. Tax Benefits for Furnished Rentals

One of the most significant advantages of renting "location meublée" in France is the favorable tax regime. Landlords benefit from:

a) Micro-BIC Regime (Simplified Taxation)

• For annual rental income under €77,700, landlords can benefit from a flat 50% tax deduction for expenses.

• This allows you to declare only half of your rental income as taxable, significantly reducing your tax burden.

b) Régime Réel (Actual Expenses Deduction)

• For higher rental income, you can deduct actual expenses, including:

  • Depreciation of furniture and property value.

  • Mortgage interest payments.

  • Maintenance and repair costs.

  • Property management fees.

• This regime can lead to even greater tax savings for landlords with high rental income.

3. Flexibility in Lease Terms

Furnished rentals provide greater flexibility compared to unfurnished rentals:

• Short-Term Leases: You can rent for a few months to seasonal visitors or expatriates.

• Long-Term Furnished Leases (Bail Location Meublée): Standard lease terms start at one year (or nine months for student rentals), shorter than the standard three-year lease for unfurnished rentals.

• Easier Termination: Landlords can terminate a furnished lease with just three months' notice (vs. six months for unfurnished rentals), giving more control over property use.

This flexibility is ideal for property owners who may want to use their home periodically or adjust rental strategies based on market trends.

4. Increased Tenant Demand

Furnished properties appeal to a diverse range of tenants, including:

• Expats and Business Travelers: Many professionals relocating to France prefer turnkey solutions.

• Students: Universities and business schools attract international students who need furnished housing.

• Seasonal Renters: Tourists and holidaymakers look for fully equipped accommodations, especially in popular regions like the French Riviera and Provence.

This broad appeal ensures continuous demand and reduces the risk of extended vacancies.

5. Simplified Property Management with Short-Term Rentals

If you opt for short-term rentals through platforms like Airbnb or Booking.com, a furnished rental is essential. Advantages include:

• Higher nightly rates compared to long-term leases.

• Flexibility to use your property between bookings.

• Easier maintenance since the property is regularly cleaned and checked.

For foreign owners, hiring a property management company can simplify operations, ensuring seamless guest experiences and compliance with local regulations.

6. Legal Considerations and Requirements

a) What Must Be Included in a Furnished Rental?

To qualify as a "location meublée," French law requires a minimum set of furnishings, including:

• Bed and bedding

• Cooking and dining essentials (stove, refrigerator, kitchenware, table, and chairs)

• Storage for clothing

• Lighting fixtures

• Cleaning equipment

b) Local Regulations for Furnished Rentals

• Some cities, particularly in tourist-heavy areas, require landlords to register their furnished rentals.

• Short-term rentals may be subject to additional local taxes and regulations.

• In certain municipalities, converting a property to a furnished rental may require authorization.

Checking with your local Mairie (town hall) ensures compliance with all applicable rules.

Conclusion

Renting "location meublée" in France is a smart strategy for property owners looking to maximize income, reduce tax liabilities, and maintain leasing flexibility. Whether you choose long-term furnished rentals or short-term holiday lets, the advantages—higher rental income, tax benefits, and tenant demand—make this an attractive option. By ensuring compliance with legal requirements and optimizing your rental strategy, you can successfully capitalize on the thriving furnished rental market in France.