Renting out your house on the Alabaster Coast all year round : unfurnished or furnished tenancy?

To rent year-round on the Alabaster Coast, choosing between an unfurnished or furnished rental mainly changes the tenancy length, notice period, deposit, taxation of rent and management obligations. It is therefore not merely a question of furniture: the contract, formalities and flexibility when leaving are different.

If your house is to become the tenant’s main residence, you are in practice choosing between two traditional frameworks: an unfurnished residential tenancy or a furnished residential tenancy. In Veules-les-Roses and more broadly on the Alabaster Coast, where many owners also have a second home, this choice should be settled before letting the property year-round.

Key points to remember

• An unfurnished tenancy normally lasts at least 3 years, compared with at least 1 year for furnished accommodation, or 9 months if the tenant is a student.
• The tenancy deposit is capped at 1 month’s rent excluding charges for unfurnished properties, compared with 2 months’ rent excluding charges for furnished properties.
• The tenant’s notice period is 3 months for unfurnished accommodation, with specific cases of 1 month, and 1 month for furnished accommodation.
• Rent from an unfurnished property falls under property income, while rent from a furnished property falls under industrial and commercial profits (BIC).
• A furnished property must contain a minimum amount of required furniture and have an inventory attached to the tenancy agreement.

The real starting criterion: main residence and level of commitment

According to the authorities, the main residence is the accommodation occupied for at least 8 months per year by the tenant, the person they live with or a dependant, except in the event of a professional obligation, health reasons or force majeure. If the tenant does not use it as their main residence, other rules apply.

The first difference then concerns the length of the commitment and the rules for ending it.

In practice, an unfurnished tenancy fits more easily into a logic of stability. Furnished accommodation offers greater flexibility, with a shorter initial commitment and a reduced notice period for the owner.

Unfurnished letting: a more stable framework for long-term occupation

An unfurnished tenancy is often chosen when you wish to house a tenant for the long term, with a property that does not contain all the items required to qualify as furnished. Legally, an unfurnished property is one lacking at least one of the furniture items or characteristic objects of furnished accommodation.

This framework has several practical consequences:

• the tenancy agreement is concluded for at least 3 years, but the tenant may leave at any time provided they give the required notice;
• their notice period is in principle 3 monthswith certain cases at 1 month ;
• the security deposit is limited to 1 month’s rent excluding charges ;
• costs are paid by instalments with an annual adjustment.

For a family home on the Alabaster Coast, this formula is well suited if you are looking for continuous occupancy and less frequent changes of tenant. In return, if you plan to recover the property to live in it or sell it, notice can only be given at the end of the tenancy, for an authorised reason (repossession to live in it, repossession to sell it or a legitimate and serious reason), with at least 6 months’ notice.

Furnished letting: greater flexibility, but more management requirements

A furnished tenancy is not simply a matter of leaving a few pieces of furniture in the property. To qualify as furnished, the property must contain at least the furniture and items specified by a decree of 31 July 2015, including:

• bedding with a duvet or blanket;
• shutters or curtains in the bedrooms ;
• a refrigerator with a freezer or freezer compartment with a maximum temperature of -6° ;
• a sufficient quantity of crockery for meals;
• maintenance equipment suitable for the accommodation.

The inventory and detailed condition report of the furnishings are therefore essential. They are prepared at check-in and check-out, signed by the parties and appended to the tenancy agreement. In practice, an overly vague inventory can easily lead to disagreements about the condition or absence of certain items of equipment.

The furnished accommodation remains more flexible on several points:

• minimum term of 1 year ;
• 9 months if the tenant is a student ;
• the tenant’s notice period of 1 month ;
• the owner’s notice period of at least 3 months before the deadline, for an authorised reason.

Rent for a furnished property is higher than that of the same property rented unfurnished, given the furniture provided. This obviously does not exempt the landlord from complying with the rules applicable to rent.

Taxation : different income categories

The choice between unfurnished and furnished also has tax implications. According to Service Public:

• for unfurnished rentals, the rent is declared as property income ;
• for furnished rentals, they are declared as industrial and commercial profits (BIC).

In both cases, property tax, ancillary taxes and social contributions are included in the owner’s tax obligations. The business property tax does not apply to the unfurnished letting of residential accommodation. For furnished letting, it may be payable when income exceeds €5,000 per year, unless the rented property forms part of the owner’s main residence; social contributions are added in some cases.

Another practical difference: with furnished letting, you must declare the start of an activity and obtain a SIRET number. If your hesitation is mainly tax-related, a discussion with your accountant or tax office can help you avoid making the wrong initial choice.

Tenant profile: what each option most often attracts

Whether unfurnished or furnished, anyone can be a tenant. The real question is therefore not legal eligibility, but whether your property is suitable for the intended type of occupation.

An unfurnished property often suits occupants who want to settle permanently with their own furniture. The tenancy of at least 3 years supports this, even though the tenant remains free to leave at any time with notice.

A furnished property may be better suited to people who want to move in quickly or retain greater flexibility. One month's notice makes certain changes in circumstances easier, but this flexibility can also lead to faster tenant turnover.

On the Alabaster Coast, some houses have a strong heritage or emotional significance. If you want to keep a furnished, move-in-ready interior, a furnished rental may be suitable, provided you accept more attentive furniture management.

Property management: unfurnished or furnished, the cost is not the same

Managing an unfurnished tenancy is often simpler day to day : fewer items to monitor, fewer furniture replacements and sometimes less tenant turnover. Furnished rentals require greater rigour : a precise inventory, equipment checks and updating items when they become worn.

You must also include the formalities specific to furnished rentals, notably declaring the start of the activity and obtaining a SIRET number. If you live far from the property, for example because the house has so far been a second home, this difference in workload may influence the decision.

For owners who wish to delegate, the firm’s property management service, provided by its sister company PCG Gestion, covers year-round lettings from Dieppe to Saint-Valery-en-Caux, with two packages: the Essential Pack at 3.7 % excl. VAT and the Premium Pack at 6 % excl. VAT of sums collected.

How to make a practical choice for your house

Before making a decision, ask yourself these questions in this order:

1. Are you looking for stability or greater flexibility?
   Unfurnished letting is often better suited to long-term occupancy. Furnished letting allows the situation to be reviewed sooner.
2. Can your house be a genuine furnished property in the legal sense?
   The compulsory items must be provided and a precise inventory drawn up.
3. Are you ready to manage the furnishings?
   Bedding, household appliances, crockery and equipment require regular monitoring.
4. Which tax framework do you accept?
   Property income for unfurnished rentals, BIC for furnished rentals, with specific formalities for the latter.
5. Will you need to take back the property in the medium term?
   The landlord can only give notice at the end of the tenancy and for an authorised reason. The furnished tenancy is concluded for a minimum of 1 year, compared with a minimum of 3 years for an unfurnished property, and notice must be given at least 3 months before the end date for furnished accommodation, compared with at least 6 months for unfurnished accommodation.

If you are still unsure, you can look at properties offered for year-round rental to position your property within the area’s long-term rental market.

The most common mistakes to avoid

• Describing a property as furnished without complying with the minimum list. If just one of the mandatory items is missing, the property is considered unfurnished under the regulations, and in the event of a dispute the judge may reclassify the tenancy agreement as an unfurnished tenancy.
• Neglecting the furniture inventory. In a furnished rental, it must be detailed, signed and attached to the tenancy agreement.
• Choosing furnished accommodation solely for the rent level. The additional management and possible turnover should also be taken into account.
• Forgetting the formalities for furnished letting. The activity declaration and SIRET number must be prepared before the property is let.
• Confusing year-round rental with tourist rental. This concerns a main residence. An unfurnished or furnished residential tenancy does not follow the same rules as a holiday let.

If your uncertainty mainly concerns the classification of the property, you can also consult the rules for furnished accommodation used as a main residence.

Frequently asked questions