Investment in a LMNP : how to finance the furnishing ?

Furnished rental is an rental investment because of the many advantages it offers to investors. In order to take advantage of this type of rental, it is necessary to respect a certain number of conditions, including the presence of furniture and equipment in the property. Such a project requires significant resources and it is not always easy to finance it with your own funds. Fortunately, by following certain tips, it is possible to optimize the costs related to the furnishing of your home.

Financing the furnishing of your home through a banking institution

Going through a banking institution is a very good way to finance the purchase of furniture when you want to invest as a non-professional furnished renter (LMNP). In concrete terms, this means applying for a loan in order to finance the acquisition of all the equipment required by law for furnished rentals. It is very important to know the list of furniture whose purchase will be financed by the bank loan. This furniture can be grouped into different categories.

In the category relating to the night space, it is necessary to provide bedding with a comforter or blanket, shutters or curtains. As for the kitchen, there should be a stove, oven or microwave, refrigerator, kitchen utensils and dishes for eating. As for the living room, there should be at least one table and chairs. To these different elements, we must add storage shelves, light fixtures as well as cleaning equipment.

Types of bank loans that can be used to finance home improvements

The purchase of equipment essential to daily life in a home can be financed through various types of bank loans. For example, the investor can apply for a personal loanThe investor can apply for a personal loan, a furniture loan, a work loan or a revolving credit. The main advantage of a personal loan is that you can receive a sum of money without having to explain its use. Thus, an investor can apply for a personal loan from a financial institution and use the amount granted to upgrade his home.

Revolving credit is a type of financing that may be of interest to investors who wish to make several purchases of furniture in the medium or long term. The revolving credit is actually an amount that the bank makes available to the borrower according to the terms of the loan agreement. The furniture credit is in reality a consumer credit whose use is well determined. The amount granted in the framework of a furniture loan will allow to finance the acquisition of furniture and to carry out other works of arrangement in the housing.

Finally, it is possible to finance the furnishing of one's dwelling by applying for a loan for work. It allows you to finance the work carried out in the dwelling, but also the furniture that will be installed there. The maximum amount that can be granted in the framework of a loan for work is 75,000 euros. This amount takes into account the borrower's ability to repay and the duration of the loan.

Financing the furnishing of your home by creating a partnership with a store

Another way to finance the purchase of furniture within the framework of your LMNP rental consists in weaving a partnership with a store of sale of furniture. Here, the idea is to get closer to a store specialized in the sale of furniture located in your investment area and then to present your investment project to the person in charge. The purpose of this financing option is to negotiate prices with the store where you want to buy the furniture for your home. If you do this properly, you can get discounts of between 5% and 15% on the price of the furniture. When you choose this solution, you should canvass and ask for an appointment with the manager of the store where you want to buy the furniture. During the meeting with the manager, the investor must explain his rental investment project, his objectives and the interests that all parties have to gain. In this way, he will be able to negotiate an invoice with interesting discounts. However, in order for this approach to be successful, the investor must take the time to prospect properly. This solution can really be worth it if the investor has several rental apartments to furnish in the same place.

A rental investment in LMNP allows the investor to benefit from tax advantages. The return on this investment will be all the higher that the budget to develop it will be low.