The coronavirus pandemic has cooled the owners of furnished tourist accommodation.

-

IStock / City Presse

Rental investment has long allowed individuals to build up assets, finance subsequent projects or secure income for their retirement years.

Some five million investors have made this choice.

In this area, different schools exist between the followers of traditional rental and furnished tourism.

Could the health context decide between them?

The attractions of furnished tourist accommodation

Seasonal rentals have grown steadily in recent years, driven by intermediary web platforms.

While many individuals are content to rent their own home during their periods of absence, others have bought real estate in order to rent them to as many travelers as possible throughout the year, as part of the furnished tourist accommodation. .

Despite reinforced administrative and tax regulations, this solution has certain advantages.

The rental period is daily, weekly or monthly, without ever exceeding more than 90 days for the same person, the contract is much less framed than for a classic rental and pricing is free.

And the day you need the property to take a vacation yourself or to house a loved one, you just need to remove your ad.

In terms of taxation, the status of non-professional furnished landlord (LMNP) also makes it possible to declare the rents received as industrial and commercial profits (BIC), with a reduction in the key, since you benefit from a flat-rate reduction 71% as long as the cash flow does not exceed 170,000 euros per year.

Towards a fall back on furnished accommodation?

If the furnished tourist accommodation has experienced a meteoric boom, the coronavirus pandemic has had the effect of a cold shower.

All specialists agree that there will be an “after-Covid” in the field of real estate rental.

Beyond the impact of the months of confinement, the limitation of international tourism frightens many owners who have become aware of the risk inherent in this rental strategy.

Not to mention that in a context of strong competition, owners must adopt additional hygiene measures to reassure their future occupants.

In addition to the usual change of linens after each stay, it is therefore necessary to thoroughly disinfect the entire accommodation.

Therefore, some investors prefer to change their minds by turning in particular to the traditional furnished rental, which makes it possible to commit for a limited period (one-year lease or ten months for the mobility lease), while avoiding the logistical complexity associated with a multitude of short stays.

In addition, taxation remains advantageous, since rents are also subject to the micro-BIC regime below 70,000 euros per year and give the right to a deduction for costs of 50%.

On the other hand, like an empty rental, it is necessary to restrict oneself to the possible framework of the rents according to the geographical area, to respect a strict formalism for the transaction (contract, inventory of fixtures, security deposit ...) and think about insuring your property against possible damage and unpaid bills.

Economy

Parking: The keys to investing without making mistakes

Economy

Students: A short rental for a specific audience, what does the mobility lease consist of?

  • Coronavirus

  • Airbnb

  • Tourism

  • Rental

  • Housing

  • Accommodation