A T2 apartment purchased on credit in a university town, rented out furnished, with the rent covering a large part of the monthly payments: this is the concrete scenario that drives thousands of individuals towards rental real estate investment each year. The mechanics seem simple, but several recent parameters are changing the game, particularly in terms of taxation.
Reintegration of LMNP Depreciations: What Changes at Resale
Since law n° 2025-127 of February 14, 2025, the depreciations deducted in non-professional furnished rentals are reintegrated into the calculation of the capital gain upon the sale of the property. For sales made from February 15, 2025, the tax bill at resale increases significantly.
In practice, it was previously possible to depreciate the property during the holding period (which reduced the taxation on rents) and then sell without these depreciations inflating the taxable capital gain. This mechanism made the LMNP under the real regime a very effective wealth management tool. This is no longer the case to the same extent.
Not all furnished rentals are treated equally. Some serviced residences (student residences, senior residences, or similar) benefit from legal exceptions to this reintegration. Therefore, before structuring a rental project, it is essential to check which category the property falls into, as the choice of market segment directly influences the exit taxation.
You can approach real estate investment with Tandem Immobilier to identify structures that take this reform into account and adapt the strategy from the acquisition stage.
Leverage Effect of Rental Real Estate Credit: How It Works in 2026
The leverage effect remains the primary argument in favor of rental investment compared to other investments. One borrows an amount significantly higher than their contribution, and the rents received pay off part of the monthly payments. The capital is built with the bank’s money and that of the tenant.
With credit rates currently around 3.5%, the net profitability depends more on the purchase price and the rent than on the cost of financing. A property purchased in an area with high rental demand (university hub, dynamic employment basin) will find tenants quickly, which limits vacancy rates.
Total self-financing remains rare, especially in large metropolitan areas where prices per square meter are high. In most cases, rents are supplemented by a monthly savings effort. The goal is not for the property to “pay for itself” from the first month, but to generate a net wealth free of debt over time.
Key Points to Check Before Signing
- The property tax, which can vary significantly from one municipality to another and impact net profitability by several points
- The condominium fees, especially for older buildings where facade renovation or energy standard upgrades are foreseeable
- The cost of delegated rental management, usually between a few percent of the rent, which adds to the charges but frees up operational time
- The energy performance diagnosis (DPE), as a property classified F or G can no longer be rented without renovation work
Rental Tension and Shortage of Small Units: Where Investment Makes Sense
The rental market remains under pressure. According to data reported by ImmoPret, the supply of rental housing increased in the first half of 2026, but it remains well below its reference level of 2019. The recovery is real but insufficient to address the imbalance, particularly for studios and T2s.
For an investor, this shortage is a positive signal: demand exceeds supply, which supports rents and reduces the risk of vacancy. Medium-sized cities with a diverse economic fabric often offer better gross returns than Paris, where purchase prices mechanically compress profitability.
Choosing between unfurnished and furnished rentals is not just a fiscal question. In furnished rentals, rents are higher and demand is strong for small units. In unfurnished rentals, the lease is longer (minimum three years), which reduces turnover and the costs of refurbishing between two tenants. Returns on this point vary according to local markets.
Rental Profitability: Distinguishing Gross, Net, and Net-Net
Many listings highlight an attractive gross profitability. One divides the annual rent by the purchase price, resulting in a flattering percentage. This figure means little until actual charges are subtracted.
Net-net profitability, after tax, is the only reliable indicator for comparing one rental investment to another. It includes property tax, non-recoverable charges, landlord insurance, any potential renovation costs, and most importantly, taxation on rental income.
Under the micro-property regime (unfurnished rental), a flat-rate allowance is available. Under the real regime, actual charges are deducted, including loan interest and, in the case of older properties, the cost of renovation work (which creates property deficits). The real regime becomes relevant as soon as charges exceed the flat-rate allowance, which happens quickly when financing with a loan.
New or Old: A Decision Based on the Project
New properties secure energy compliance and limit work during the first few years. Older properties allow for negotiating the purchase price and creating property deficits through renovations, but they expose one to technical surprises. One does not choose one or the other by principle: the choice depends on the available budget, holding horizon, and current tax pressure.
Rental real estate investment remains a solid wealth-building lever, provided that recent fiscal developments are integrated from the structuring phase. The reintegration of LMNP depreciations, the ongoing pressure on small units, and the current level of credit rates create a framework where profitability is built on the rigor of calculation, not on promises of gross returns.