- The conditions to be fulfilled for renting a room in your house
- How to fix the rent amount of the room?
- Taxes on renting a room in your house
If you have an empty room in your home and want to make it profitable, you can consider renting it to a student for example. Know the formalities to be completed and how to fix the amount of rent when you put a room in your house for rent.
Put a room in your house for rent: how and why?
The conditions to be fulfilled for renting a room in your house
Know that if you wish rent a room in your homeYou are required to establish a furnished rental agreement, which means that you must equip the room with adequate furniture, the list of which is established by law.
In addition, as for any rental, you must provide your tenant diagnoses which are two in number:
- The energy performance diagnosis (EPD) which costs a hundred euros and is valid for 10 years. It also includes the state of natural and technological risks that is valid for 6 months and is free if you call the mayor or the prefecture to perform it. If you hire a professional, it will cost you around € 30;
- The risk of exposure to lead, if your home was built before January 1, 1949. This diagnosis must have been made less than 6 years from the date of signing the contract.
How to fix the rent amount of the room?
If you rent a room in your house, it's naturally make it profitable and therefore to collect a rent. To fix the amount of rent, you will have to take into account several parameters:
- The place where you live: if a room of about fifteen m² has an average rent of € 260 in Dunkerque, this amount can reach € 500 in Paris!
- The comfort you offer to your tenant: If you rent a single room and small area, the rent will be lower than if you give your tenant sanitary and a kitchenette, for example. Also consider the amenities: it is obvious that you can raise the rent if the room you rent is equipped with a flat screen.
Similarly, you will have to calculate the amount of charges (water, electricity or internet) which your tenant will be liable. There is no rule in the matter, but it is customary to make a flat fee from the surface of the room you rent, the number of people living in the home and the equipment. It is also possible to collect a percentage of the taxes that you set for your home, namely the housing tax, the audiovisual tax, etc.
Taxes on renting a room in your house
If you had to take only one reason to rent a room in your house, it would be for its advantageous taxation.
Indeed, when you go collect your rent, these will obviously be subject to tax, and you will have to report your income revenue in the Industrial and Commercial Profit (BIC) category.
Please note that if the gross annual amount of rent you received is less than € 76,300, you can benefit from the simplified micro-BIC plan, which means that you will benefit from an automatic rebate of 71%. (*)
Finally, if the room you rent is the main residence of your tenant, and if the rent you applied to him does not exceed a certain ceiling set by law, you will benefit from tax exemption.
(*) Article written in May 2016, figures are given for information only and are subject to change.