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Understanding the profitability of your short-term rental

The profitability of a short-term rental depends on two elements:

• the revenue generated
• the applicable tax system

 

Depending on your tax regime, certain expenses can be deducted, particularly concierge service fees.

Two possible tax regimes if your property is in France

The LMNP Micro-BIC regime or the LMNP real regime.
 

If you have chosen the real regime, you can deduct your actual expenses:

• concierge service fees
• cleaning
• maintenance
• insurance
• mortgage interest
• property depreciation


The more expenses you have → the more advantageous the real regime becomes.

 

Example:

Rental income: €30,000
Concierge services: €7,500
Maintenance / cleaning: €2,000
Insurance / charges: €1,000

Total: €10,500
 

Taxable income: €19,500 (30 000 - 10 500)
 

In some cases, thanks to depreciation, the taxable base can be reduced even further.

Since every tax situation is different, the choice of regime should be confirmed with a chartered accountant.

Image de Amol Tyagi

The real question is not only:

How much does a concierge service cost?

But rather:

What is the net income after optimization?

 

Professional management can:

• improve occupancy rates
• optimize pricing
• simplify day-to-day management

Are you looking to delegate while keeping control of your property?

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