What to do with your property at the end of a Pinel investment? Once the commitment is over, the owner of a new property acquired in a zone of real estate tension can no longer benefit from the tax advantage provided by this scheme, i.e. a tax reduction that varies according to the duration of the bare rental (12% for six years, 18% for nine years and 21% for twelve years, according to the rates currently in force).
Several options are available. First, continue the bare rental, this time without the tax incentive. Second, keep the property for personal use: beware of the new impact of the property tax (which can be increased by 60% in a busy area if the property remains a secondary residence). Resell the property? "With the arrival in number, at the same time, on the free market of properties acquired in Pinel, the risk of a depreciation is great", warns Jean de Balincourt, president and founder of Lokizi.
Another possibility: the transformation of the apartment into a long-term furnished or tourist rental. By placing himself under the status of the LMNP, the owner-lessor will be able to continue to reduce his taxation on the collected rents. "For the operation to be a success, it is necessary to ensure that the demand for furnished rentals is strong in your area and to equip the property sufficiently to meet the needs of the tenants," warns Maud Velter, co-founder of the site Jedeclaremonmeuble.com. "Fiscally, the passage in LMNP is very interesting because you will be able to depreciate the good by retaining its market value. Of course, you have to take into account the possible rent control that is now applicable in many cities; and if you want to rent on a seasonal basis, remember to check the regulations in force in the municipality regarding tourist rentals." In addition, it is imperative that the investor waits for the tenant to give notice before switching to LMNP.
"The same property can, in the same tax year, be taxed both as a bare property (in the form of property income) and as a furnished property (BIC). Beware of the impact of the latest land deficit carryovers," Jean de Balincourt also warns.