Rules for renting your principal residence

Published on : 10 June 20192 min reading time

Tenants who do not own their property must obtain the consent of the landlord. Those who live in an apartment must ensure that the condominium regulations allow for furnished rental if they wish to rent the property. The rental of his main residence is not without economic and tax consequences. This operation follows a few rules. When renting the principal residence on a seasonal basis, it is important to ensure that the rental does not exceed 90 consecutive days in the year.

Some rules to follow to rent your main residence

People who decide to rent their property lose the advantage of the interest-free loan that helped them acquire their main residence. By choosing to rent his or her principal residence, the landlord may risk losing the exemption from capital gains tax. The latter applies at the time of sale of the property.

It will also be necessary to provide a budget for the establishment of mandatory diagnoses. When the rental of the property concerns seasonal rental, the owners will have to be vigilant about the conditions of time limit to give notice to the tenant. Income from rentals is subject to tax.

Rent the main residence furnished or empty

The regulation concerning the rental of an empty dwelling in a main residence must comply with the law. This law will also have to be applied when it concerns mixed-use residential and professional housing. Renting a furnished principal residence is an approach governed by the Building Code. The rules concern the establishment in writing of a rental contract, the duration of the lease which is equal to one year.

Taxation and insurance of a rental of a principal residence

Despite the fact that the income reported by the seasonal rental of a principal residence is very low, the tax authorities require proper reporting. Those who fail to file their returns will have to pay additional income tax, a 10% surcharge and late payment penalties of 0.40% per month. By choosing to rent the seasonally furnished main residence, you are subject to the micro BIC regime. Homeowners are taxed according to the marginal tax bracket of 15%. This tax includes a flat-rate allowance of 50%.

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