Investing in a student residence: A complete guide

Investing in a student residence Is an interesting option to diversify your assets and generate Rental Income. This type ofRental Investment is attractive thanks to high demand and simplified management. It also allows you to take advantage of a BIC Industrial and Commercial Profit Status, offering Tax benefits interesting.

However, it is important to fully understand the Tax regimes and the specificities of the market before launching. This article guides you step by step to make a successful investment.

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Why invest in a student residence?

The Market ForRental Investment In student residence is booming. This type of property attracts investors who want to diversify their assets and benefit from a Stable Profitability. With regular income and ever-increasing demand, it is an attractive solution for those looking for a Secure Real Estate Investment.

In Addition to a Attractive Yield, it offers simplified management thanks to a Commercial lease Which delegates all rental constraints to a specialized operator.

Les Student residences offers modern and well-equipped accommodations. They are located in City Center or near universities and schools.

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A Fast-Growing Market

The Request for Student Housing Is constantly increasing in France. Every year, thousands of new students are looking for housing adapted to their needs.

However, the offer remains insufficient, especially in Major University Cities like Paris, Lyon, Bordeaux and Toulouse. This situation creates a Imbalance between supply and demand, thus guaranteeing a high occupancy rate for Student residences.

The increase in the number of international students reinforces this demand. Many are looking for modern and equipped accommodations, close to University campuses and transport infrastructure.

This Continued Growth Of the student market ensures investors a Furnished Rental Without interruption, thus limiting the risks of a rental vacation and offering a Source of Rental Income steady and steady.

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Housing adapted to the needs of students

Students are looking for accommodations that are practical, comfortable, and secure. Les Student residences Meet these criteria perfectly by offering fully furnished studios or one-bedroom apartments. These accommodations are designed to maximize space and provide a functional working environment.

In Addition to the Student Housing, the residences offer various Quality services That appeals to tenants. High speed internet connection, coworking spaces, Gym, laundry and concierge services are among the most popular facilities. These services provide a Added value Which makes it possible to justify higher rents and to ensure a Attractive Profitability to investors.

Student residences offer functional housing, often in the form of studios or one-bedroom apartments. They also offer attractive services that appeal to tenants. Students prefer this type of accommodation for the comfort and security it provides.

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Tax and financial advantages

In Addition to a Secure Real Estate Investment, invest in a Service residence Allows you to benefit from increased taxation. Investors Can Choose Between Several Tax regimes To Optimize Their Rental Income. Whether under the LMNP status Or by opting for the Real Regime, the systems in place offer numerous opportunities to reduce taxation and maximize the return on investment.

Investing in a student residence allows you to benefit from several Tax benefits. These systems make investment more profitable and optimize the taxation of Rental Income.

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The LMNP status and its fiscal advantages

The Non-Professional Furnished Rental Status (LMNP) Is particularly beneficial for those who want to generate Rental Income with reduced taxation. It allows you to benefit from two attractive tax regimes:

• Micro-Bic Diet : Allows a 50% discount On rental income, which reduces overall taxation.
• Real Regime : Allows you to Deduct expenses, loan interest and amortization of the property, thus optimizing profitability.

The advantage of LMNP status Does it offer attractive fiscal flexibility and makes it possible to limit taxes on Rental Income Coming from the Furnished Rental.

In addition, this type of investment also allows Recover VAT On the purchase of the property, under certain conditions, which reduces the initial acquisition cost.

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Profitability and Simplified Management

Investing in a Student residence Allows You to Take Advantage of a Rental Profitability Attractive, often between 3.5% and 5.5% Depending on the location and quality of the residence.

One of the great advantages of this investment is the Simplified Rental Management Thanks to a Commercial lease Signed with a professional operator.

With a Commercial lease, the investor delegates entirely the Rental Management :

• Payment of rent : The operator guarantees the payment of rent, even in the event of a rental vacancy.
• Property maintenance : Maintenance and routine repairs are taken care of.
• Administrative management : No direct relationship with the tenants, the operator takes care of the legal and contractual aspects.

This delegated management allows the investor to receive Rental Income Regular without having to manage the constraints of a Furnished Rental classic. It is an ideal solution for those who want a Turnkey Real Estate Investment with long-term visibility.

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Recover VAT on the investment

Investing in a service residence makes it possible to Recover VAT (20%) on the purchase price. For This, The Property Must Be Rented With A Commercial lease and offer at least three services to tenants (reception, cleaning, breakfast). This VAT recovery improves the profitability of the project.

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How do you choose the right student residence?

The choice of property is essential to ensure good profitability. Several criteria must be taken into account before investing.

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Location: a key criterion

A Good Real Estate Investment Must be located in a city where student demand is high. Choose housing close to universities, well served by transport and located in City Center.

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The services offered in the residence

Students are looking for comfort and convenient services. A residence that offers a Gym, a launderette or a coworking space will be more attractive. This equipment also makes it possible to justify a higher rent.

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A reliable and experienced manager

It is important to choose a reliable operator. Verify his financial solidity, his experience in Rental Management and its commitments in terms of profitability.

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The risks and disadvantages to take into account

Like Everything Real Estate Investment, buying a property in a student residence involves risks. It is important to anticipate them to avoid unpleasant surprises.

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The constraints of commercial leases

The Investor Signs a Commercial lease With a manager. This type of contract imposes certain constraints:

• Long Commitment Period : Often between 9 and 12 years of age.
• Supervised rent : It is impossible to increase rents freely.
• Risk of manager failure : In the event of bankruptcy, it can be difficult to find another operator.

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The resale of a property in a student residence

Unlike a traditional investment, the resale of a property in a student residence is more specific. It depends on the current lease and the rental yield. To maximize your chances of resale, you should choose a well-placed and well-managed residence.

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Conclusion

Investing in a student residence Is a profitable and secure solution for generating Rental Income regular. Thanks to LMNP status, It is possible to take advantage of a Taxation and simplified management via a Commercial lease. However, it is essential to choose the right property, its manager and to anticipate the constraints related to Commercial lease. It's our job to find properties that meet your profitability criteria. Find out more about our rental investment service here.

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❓ FAQ

1. What is the average return on an investment in a student residence?

The yield varies between 3.5% and 5.5%, depending on the location and management of the residence.

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2. Can VAT be recovered on a student residence?

Yes, as long as you rent with a Commercial lease and to offer at least three services to tenants.

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3. What are the advantages of LMNP status for a student residence?

The LMNP status Makes it possible to reduce taxes on Rental Income Thanks to Tax regimes Micro-Bic or real.

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4. What are the criteria for choosing a student residence?

It is necessary to favor a Location Close to Universities, has Solid Manager and attractive services such as a Gym Or a coworking space.

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5. Is it easy to resell a property in a student residence?

La Resale Depends on the Commercial Lease in progress. A well-located and well-managed residence is more easily resold.

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