Good news for real estate investors: the market seems to have peaked in major cities. However, “even if the prices there are slightly downward, they remain high”, nuance Thomas Lefebvre, scientific director of Meilleursagents. However, rents have not increased in the same proportions. Also, to obtain a profitability exceeding 4%, you will have to find another solution.
One of them is to buy a large area. Of course, you will need to have a larger budget, but their price per square meter is 15 to 25% lower than that of a studio. The negotiation margin is also stronger on a family property, because this category interests fewer buyers today.
Once this accommodation has been renovated, you can offer it as shared accommodation. A different formula from joint tenancy, which consists of tenants signing a single lease to share an apartment. Here, everyone occupies their own room and signs a separate long-term furnished lease (classic, student or mobility), but not tourist accommodation.
An “all-inclusive” rent
Each room generally has a private shower room and the rent is “all inclusive”, including Internet and TV subscription, insurance, electricity, weekly cleaning, etc. “In large metropolises, the co-living represents an alternative to hotel accommodation. But beware: the apartments rented in this form must be of a higher standard than the market average”, recommends Manuel Ravier, co-founder of the site Rental-investment.com.
So take care of the layout, by installing all the necessary equipment in the shared kitchen. Also plan an office area in the common living room with enough connections, a large television screen and a powerful box. The rent for each room can then equal that of a studio in the high average of the local market. Finally, you will benefit from a tax advantage (see below)
Shared housing is not a miracle solution, however. First, it is only possible in large cities, where managers on long-term assignments and young workers are the most numerous. Then, the turnover of tenants is very high, resulting in time-consuming administrative management. Finally, be aware that your home will deteriorate more quickly, forcing you to regularly renew equipment and carry out work. Otherwise, your property will rent poorly and will not show the expected profitability.
A good way to reduce your taxes
Renting a furnished apartment or house is considered a commercial activity. As a result, the rents collected must be declared as industrial and commercial profits (BIC), and not as property income. They are taxed by default under the micro-BIC regime. After a 50% allowance, rental income is taxed at the progressive scale of income tax according to your marginal bracket and, in addition, subject to social security contributions of 17.2%.
However, you have the option of opting for the actual plan. It even becomes mandatory if your profits exceed 72,600 euros per year. In this case, “the lessor deducts from his rents his charges (insurance, subscriptions, loan interest, work, property tax, etc.) his acquisition costs (transfer duties and agency fees) and he amortizes his well and its equipment according to precise rules”, explains Maud Velter, co-founder of Jedeclaremonmeuble.com.
The sum of these deductions is generally greater than the income, making it possible to generate a deficit. Enough to escape taxes and social security contributions on rental income for ten years.