Real Estate Activity as a Sole Proprietor: Furnished Seasonal Rentals

Why Choose the Sole Proprietorship Regime for Furnished Seasonal Rentals? If you own a furnished property that you wish to rent out occasionally, the micro-enterprise regime can be a good solution. This regime ensures compliance with tax regulations, particularly regarding charges and social contributions. Advantages, procedures, management—we explain everything.

If you own a furnished property that you wish to rent out occasionally, the micro-enterprise regime can be a good solution. This regime ensures compliance with tax regulations, particularly regarding charges and social contributions. Advantages, procedures, management—we explain everything.

What is Furnished Seasonal Rental?

Before addressing the micro-enterprise regime, it is necessary to define the terms of furnished seasonal rental. Furnished rental involves making a furnished property available to a tenant. The law requires providing at least bedding, shutters and/or curtains, lighting fixtures, cooking plates, an oven (or microwave), a refrigerator with a freezer compartment, a table and chairs, dishes, and kitchen utensils.

Several types of properties can fall under the category of seasonal rental: a house, an apartment, a studio, a room. Note that unlike a gîte or bed and breakfast, the owner is not necessarily present in the rented accommodation.

Seasonal rental covers different short-term periods. It can be one or more days, one or more weeks, one or more months, not exceeding 90 consecutive days according to current law.

When short-term furnished rental is declared to the town hall, it can be referred to as tourist accommodation. The advantage of tourist accommodation is that it can be classified and receive a rating ranging from 1 to 5 stars.

Complying with a Revenue Threshold for Furnished Seasonal Rental as a Sole Proprietor

The micro-enterprise regime is suitable for seasonal rental activity when the annual turnover generated by the furnished lessor equals or exceeds €23,000. In the micro-enterprise regime, turnover corresponds to all income received each month.

The annual threshold not to be exceeded changes depending on the declaration to the town hall of your rental property. Thus, for a rental declared to the municipality as tourist accommodation, the threshold not to be exceeded is €176,200. In the absence of declaration to the town hall, the property is not considered tourist accommodation, and the maximum annual turnover threshold is €72,600.

As a sole proprietor, you are responsible for paying social contributions to the tax authorities. These must be paid to the URSSAF, monthly or quarterly according to your choice. Note that in case of zero turnover, you have nothing to pay to the tax authorities, no taxes or fees. However, declaring turnover is mandatory, even if it equals 0. You are liable for income tax.

You can manage the accounting of your micro-enterprise yourself or hire an accountant.

Advantages of the Micro-Enterprise for Seasonal Rental

The micro-enterprise regime is accessible to any natural person. You can be a student, retiree, unemployed, or even employed, depending on the conditions of the company where you work.

The micro-enterprise allows for flexible accounting management. You just need to keep a record of income and retain your billing and payment receipts. If your turnover does not exceed €85,800, there is no VAT to be paid to the tax authorities. Since you are not subject to this tax, your rates are more attractive.

One of the greatest advantages of being a sole proprietor is that if you have no turnover, you have no contributions to pay. You just need to indicate 0 in your monthly or quarterly declaration to the URSSAF. This is particularly interesting for furnished lessors who may not want to rent out their property for several consecutive months, for example.

Under the micro-enterprise regime, you do not pay corporate tax. You are subject to income tax. Your income consists of all your revenue minus all charges, taxes, and other expenses necessary for the operation of your business. Note that you benefit from an allowance on your turnover.

You have the possibility to combine your income from self-employment with social benefits such as ACRE and the active employment allowance. Feel free to contact your Pôle emploi agency and your CAF for more information.

You do not need to hire an employee to manage your micro-enterprise. Finally, note that you can cease your activity whenever you wish. You just need to inform the URSSAF.

How to Engage in Real Estate Rental as a Sole Proprietor?

Thanks to the micro-enterprise regime, the procedures for engaging in furnished seasonal rental are greatly simplified. Several situations are possible:

you have a furnished property to rent out. You can engage in seasonal rental with or without declaration to the town hall;

you do not have a property to rent out but are looking for a rental investment;

you want to entrust the management of your property to a short-term rental professional.

Operating as a furnished tourist accommodation lessor as a micro-enterprise: the procedures

To best define your project, it is first necessary to make a choice regarding the type of furnished seasonal rental. Is the €72,600 turnover threshold sufficient, or do you want a furnished tourist accommodation allowing you to reach the €176,200 ceiling?

In the first case, you do not need to take any action with your municipality and can proceed to create the micro-enterprise.

In the second case, you must declare your property to the town hall using form CERFA No. 14004. This declaration results in obtaining a registration number that must appear in all advertisements related to the rental property. This number will be required when creating your micro-enterprise.

To create your micro-enterprise, you must go to the website autoentrepreneur.urssaf.fr. Registration and account creation can be done in a few clicks. It is from this account that you will subsequently pay your social contributions.

Investing in furnished seasonal rental as an individual

You do not have a property to rent out, but you are attracted by the idea of seasonal rental under the micro-enterprise regime? At Colonies, we can help you realize your rental investment project.

Our experts search for the property that best suits your furnished seasonal rental project. We assist you in creating your business plan to understand your needs and expectations. We advise you on administrative procedures. If necessary, we can help you renovate your property with our architects and designers.

Entrusting the Management of Your Furnished Seasonal Rental

Furnished seasonal rental can be a very time-consuming activity. Not only do you need to manage the administration of the micro-enterprise, but you also need to ensure the management of the rental. These include:

• choice of insurance;

• publication of advertisements;

• property visits;

• drafting of the lease;

• entry and exit inventories;

• collection of tourist tax.

Moreover, if you are already a furnished lessor, you know how difficult it can be to find tenants. On this point, the expertise of Colonies can be particularly beneficial to you.

By entrusting your rental property to us, you are registering your accommodation in the coliving or shared housing trend. This could be, for example, a studio in a building with shared spaces (living room and kitchen). The demand for this type of rental is growing and is not limited to students and young workers. Retirees are increasingly looking for this communal living experience, which offers conviviality and comfort.

In addition to managing your property rental, we find reliable tenants for you. You can thus devote yourself entirely and serenely to the management of your micro-enterprise.