Should You Rent Furnished or Unfurnished? A Guide to Choosing

A furnished rental brings in more rent and a more favorable tax allowance, but it takes an upfront investment and more hands-on management. An unfurnished rental is more stable but less profitable. This choice shapes your whole long-term rental management strategy.

The key differences between furnished and unfurnished

Before you choose, you need to understand what sets the two statuses apart.

Furnished rental: the home comes with furniture and basic equipment (bed, table, fridge, etc., following the list set by decree). The lease runs one year at minimum, renews automatically, and falls under the micro-BIC tax regime (micro-BIC, the simplified tax regime for furnished rentals).

Unfurnished rental: the home is empty or has only minimal fittings (heating, a stove). The lease runs three years at minimum for an individual landlord, and falls under the micro-foncier tax regime (micro-foncier, the simplified tax regime for unfurnished rentals).

The advantages of a furnished rental

On average, a furnished home rents for 15 to 30% more than an unfurnished one. The micro-BIC regime that applies to a standard furnished rental gives you a 50% allowance on your rental income (versus 30% for unfurnished), as long as you stay under the current revenue ceiling.

Furnished also attracts a specific type of tenant: students, young professionals, or people on short work assignments who want a turnkey solution. And the shorter one-year lease lets you rethink your rental strategy more often.

What it costs in return

You have to furnish the home (budget between €3,000 and €10,000 depending on size) and maintain the furniture regularly. The home must also meet the regulatory list of required equipment (bedding, cooktop, fridge, kitchen utensils, table and chairs, storage, light fixtures, cleaning supplies). Finally, more frequent turnover means more move-in and move-out inspection reports and more regular tenant searches.

The advantages of an unfurnished rental

No furniture to buy: ideal if your budget is tight. Three-year leases give you more rental stability, with less turnover and tenants who are often more invested in the place. Tenants also generally handle the ordinary wear of fittings, except for age-related wear.

In return, profitability is often lower than with furnished, especially in high-demand areas. To take your property back, you also have to give a longer notice period than with furnished, which limits your flexibility if you want to recover it quickly. That’s worth weighing if you’re thinking about switching to long-term after some short-term rental experience.

How to choose based on your situation

• Your goal: maximum profitability → furnished; stability → unfurnished.
• Your budget: able to invest in furnishings → furnished; want to keep upfront costs low → unfurnished.
• Location: student city or tourist area → furnished; more family-oriented area → unfurnished.

Whichever you choose, the rent amount you set needs to account for this status from the start: it drives both the market price and the tax regime that applies. And remember to check every year whether you can review that rent, whichever regime you picked.