Is it more profitable to let furnished or unfurnished?

Furnished homes often let for slightly more and benefit from more favourable taxation (micro-BIC or LMNP under the régime réel), but they involve more management and potentially higher vacancy. Net returns depend on the local market and the tax regime.

What is the difference in lease between furnished and unfurnished?

The unfurnished lease runs for three years with a six-month landlord notice period; the furnished lease runs for one year (nine months for a student) with a three-month landlord notice period. Furnished letting is therefore more flexible.

Is taxation better with furnished letting?

Often yes: furnished letting falls under BIC (micro-BIC or the régime réel with depreciation under LMNP), generally more favourable than the micro-foncier or the régime réel of property income for an unfurnished home.

Can an unfurnished let be converted to furnished?

Yes, but not during the lease: you must wait for its term, give notice according to the rules, then offer a new furnished lease with a home equipped in line with the decree.

Furnished or unfurnished letting: which should a landlord choose?

Updated on July 16, 2026 · 7 min read

Furnished or unfurnished is one of a landlord’s first decisions, and it shapes the lease, taxation, management flexibility and returns. Furnished letting often offers more favourable taxation and greater flexibility, but requires more management and a fully equipped home; unfurnished letting secures longer leases and lighter management. The right choice depends on the property, the local market and your objectives.

The lease: duration and flexibility

With unfurnished letting, the primary-residence lease runs for three years (renewable) and the landlord’s notice period is six months. With furnished letting, the lease runs for one year (nine months, non-renewable, for a student) and the landlord’s notice period drops to three months. Furnished letting therefore gives more flexibility to take back the property or change its use.

Taxation: micro-BIC versus micro-foncier

Rent from an unfurnished home falls under property income (revenus fonciers): micro-foncier (flat-rate property-income tax regime) with a 30% allowance, or the régime réel (actual-expenses tax regime) deducting charges. Rent from a furnished home falls under BIC (industrial and commercial profits): micro-BIC (flat-rate business-income tax regime) with a higher allowance, or the régime réel with depreciation of the property and furniture (LMNP, the non-professional furnished landlord status), often the most advantageous. Taxation generally leans in favour of furnished letting.

Security deposit and charges

The security deposit is capped at one month’s rent excluding charges for unfurnished letting, and up to two months for furnished letting. On charges, both regimes allow recovery of recoverable rental charges; furnished letting additionally involves maintaining and replacing the furniture, which must be factored into the return calculation.

Returns and vacancy

Furnished homes generally let for slightly more and target a mobile demand (students, workers on the move), at the cost of more frequent turnover and a higher vacancy risk. Unfurnished letting builds long-term loyalty and reduces management. Net returns depend mainly on the local market and the chosen tax regime, not just on the headline rent.

How to choose

A few pointers to help you decide:

small unit in a student area or tight market → furnished letting often adds more value to the property;
family, residential neighbourhood, seeking stability → unfurnished letting limits turnover;
goal of tax optimisation → furnished letting under the régime réel (LMNP) and depreciation are decisive;
minimal management wanted → unfurnished letting, with no furniture to maintain, is simpler.

Frequently asked questions

Is it more profitable to let furnished or unfurnished?: Furnished homes often let for slightly more and benefit from more favourable taxation (micro-BIC or LMNP under the régime réel), but they involve more management and potentially higher vacancy. Net returns depend on the local market and the tax regime.
What is the difference in lease between furnished and unfurnished?: The unfurnished lease runs for three years with a six-month landlord notice period; the furnished lease runs for one year (nine months for a student) with a three-month landlord notice period. Furnished letting is therefore more flexible.
Is taxation better with furnished letting?: Often yes: furnished letting falls under BIC (micro-BIC or the régime réel with depreciation under LMNP), generally more favourable than the micro-foncier or the régime réel of property income for an unfurnished home.
Can an unfurnished let be converted to furnished?: Yes, but not during the lease: you must wait for its term, give notice according to the rules, then offer a new furnished lease with a home equipped in line with the decree.