Understanding the essentials of non-professional furnished rental (LMNP)

Non-professional furnished rental is booming. Indeed, with increasingly flexible housing needs and growing mobility, furnished accommodation is emerging as a modern, comfortable solution. Students, professionals on assignment or families in transition are all looking for a ready-to-live-in place, without the constraints associated with settling in. Seasonal rentals, on the other hand, offer the possibility of renting furnished accommodation for short periods, meeting the needs of both travelers and hosts. Here's what you need to know about LMNP status. 

What is non-professional furnished rental?

Non-professional furnished rental (LMNP) refers to the activity of rent an equipped apartment of all the furniture and equipment needed for daily life, without making this its main activity. It is a tax status which allows you to rent a furnished property while benefiting from a flexible regulatory framework.

This status applies to individuals who receive rental income which can exceed 23,000 per yearThis is an ideal solution for homeowners looking to generate additional income. This makes it an ideal solution for homeowners looking to generate additional income.

Obligations from the outset

There are a number of steps you need to take to start up a non-professional furnished rental business. First of all, you need to register your business with the INPI in order to obtain a trademark. SIREN number. This formality is simple, but essential if you want to be in good standing.

Next, a lease contract must be drawn up, together with a detailed inventory of the furniture. It should be noted that the law requires a legal minimum equipment bed, comforter, hob, oven, fridge, crockery, table, chairs, storage, lighting, cleaning equipment, etc...

Choose the right tax regime for your non-professional furnished rental

Selecting a tax system It's important to know what's relevant to your non-professional furnished rental, and calling in a specialist can help you avoid mistakes. There are several options available to you, and we're going to present them to you right now. Please note that this tax choice is not definitive, and can be modified from one year to the next. 

Micro-BIC scheme

This easy-to-apply scheme provides for a flat-rate allowance of 50 % of rents received for classified furnished accommodation and 30 % for unclassified tourist rentals. It remains valid as long as rental income does not exceed 77,700 per year or 15 000 € for unclassified furnished accommodation.

Actual regime

More complex, but often more attractive, this system allows you to deduct all expenses related to your business.rental activity This is an option to consider if you regularly incur expenses or if you rent a valuable property.

An accounting system not to be neglected

Depending on whether you opt for the micro-BIC or the actual tax system, the accounting requirements are not the same. If you opt for the micro-BICThere's no need for conventional bookkeeping. Simply note your annual rents to declare them each year. In this case, calling in an accountant is not essential. 

However, non-professional furnished rentals require rigorous accounting by actual system and more advanced accounting organization: 

• Complete recording of entries and expenses, with associated proofs ;
• Various accounting documents, such as the depreciation schedule and income statement, are now mandatory;
• Electronic submission of tax returns to the tax authorities.

In this configuration, surrounding yourself with a accounting professional specialized in real estate is a good idea. It will save you time, and its costs are deductible from your rental income.

Simplify the management of your non-professional furnished rental with My Guest Relation

Managing a non-professional furnished rental property takes time, discipline and excellent organization. My Guest Relation, our Airbnb concierge serviceis there to helptourist accommodation by taking care of everything: creating ads, welcoming travelers, professional cleaning, etc... We direct you to competent experts for the administrative follow-up of your property to help you optimize your tax situation!