Becoming a Non-Professional Furnished Rental Business Guide and rules to follow

Invest in a property and furnish it

The first step in becoming an LMNP is to invest in a property. This can be an apartment, a house or a serviced residence (student, senior, tourism, business). The property must then be furnished. The law stipulates that the accommodation must be equipped with sufficient furniture to enable the tenant to live, sleep and eat in normal conditions. A precise list of essential furniture is defined by decree no. 2015-981 of July 31, 2015.

Renting furnished accommodation

The furnished property must be rented out. The rental contract must be a furnished lease, either a lease for a furnished main residence, or a commercial lease if the property is in a serviced residence.

Not registered as a professional

To qualify for LMNP status, you must not be registered with the Registre du Commerce et des Sociétés (RC S) as a professional landlord. In addition, annual rental income must not exceed €23,000, or if it does, it must not represent more than 50% of the taxpayer's total income.

Declaring your activity

To qualify for LMNP status, you need to declare your non-professional furnished rental activity. This is done via the Guichet Unique de l'INPI (which has replaced Infogreffe) and enables you to obtain your SIRET, which will attest to your LMNP status.

Choosing the right tax regime

As a LMNP, you can choose between two tax regimes: the micro-BIC (Bénéfices Industriels et Commerciaux) regime, which offers a flat-rate deduction of 50% for expenses and charges, applicable if your annual rental income is less than €72,600 (or €176,200 for classified furnished rentals) in 2023, and the actual regime, which allows you to deduct all charges and depreciation linked to the business, but requires more rigorous accounting.

Compliance with accounting and tax obligations

Finally, as an LMNP, you must comply with certain accounting and tax obligations. In particular, you must declare your rental income each year on your income tax return, in the BIC category. Depending on the tax regime you choose, you'll also have to keep simple (income/expenses) or detailed accounts.

Becoming a non-professional furnished rental operator is a process that requires a certain initial investment, knowledge of legal and tax regulations, and a certain accounting rigor, all of which the decla.fr platform enables you to benefit from. The rules have to be respected, but the status can offer significant tax advantages and a potentially high rental yield.