Long confined to new-build programmes, investing in managed residences is now common practice on the resale market. Discounted prices, known rents, a lease already in place: the formula appeals to wealth-minded investors seeking regular income. Its strengths and limitations still need to be weighed, however, at a time when the tax treatment of furnished rentals is tightening.
The principle is simple. A private individual buys, from an original investor, a unit located in a serviced residence, whether it houses students, seniors, dependent elderly people or holidaymakers. The property is already let to an operator under a commercial lease, which continues without interruption for the benefit of the new buyer. From the moment of signing, the buyer receives rent paid by the operator, regardless of the actual occupancy rate.
The main attraction lies in the price. Whereas new-build prices include developer margins and marketing costs, resales generally take place 15 to 30% below the original price. For anyone considering whether to buy a resale LMNP property, this discount automatically translates into a higher yield for the same rent. Another advantage, and by no means a minor one, is that a track record exists. Regularity of payments, the residence’s accounts, the operator’s conduct at the previous lease renewal: all of this can be examined before committing, whereas new-build offers only projections. Nor is there any construction period to delay the first income.
The non-professional furnished landlord status (LMNP) remains the cornerstone of the scheme. Rental income is taxed as industrial and commercial profits (BIC), which opens up two options. The micro-BIC regime applies a flat-rate 50% allowance as long as annual rents do not exceed €83,600. The actual-expenses regime, on the other hand, allows the deduction of expenses, loan interest and, above all, depreciation of the property, which often wipes out taxable income for many years. The scope of LMNP taxation has nevertheless changed over the past two years, and it is important to reason on the basis of the rules currently in force.
Since 15 February 2025, depreciation previously deducted has been added back when calculating the capital gain on resale, which increases the tax bill for conventional furnished lettings. However, lawmakers expressly exempted student residences, senior residences and medicalised care facilities, while tourist and business residences remain subject to the new rule. This exception gives resale units in these categories an unprecedented comparative advantage. Social charges on furnished rental income have nevertheless stood at 18.6% since the 2025 income year, and the 2027 finance bill, expected in the coming days, could reopen the debate on capping depreciation, an option floated this summer in a parliamentary report but never voted into law. The finance act promulgated on 19 February 2026, for its part, left the scheme intact.
Depending on the type of residence, gross yields observed on the resale market stand at around 4 to 5% for student or senior residences, and can reach 4.5 to 6.5% in nursing homes for dependent elderly people (EHPAD). Tourist residences tend to range between 3 and 5%. Net of property tax, accountancy fees and the business property contribution (CFE), the range most often narrows to between 3 and 4%, a respectable level for an investment requiring no rental management whatsoever.
Actual profitability, however, depends less on the advertised yield than on the quality of the lease. The revaluation index used, the frequency of indexation and the existence of a cap on increases weigh heavily on the ten-year income trajectory. Likewise, the allocation of major works between owner and operator determines the final outcome far more than half a point of rent.
The financial strength of the operator is the first criterion to assess. A fragile operator exposes owners to downward rent renegotiations, or even default, as the sector has already experienced. The lease expiry date also deserves careful examination, as a contract nearing its term casts uncertainty over the renewal conditions. It is also essential to ensure that taking over the lease allows the VAT recovered at the outset to be retained, with the buyer continuing the seller’s commitment until the end of the twenty-year period.
Finally, the resale of a unit in a managed residence targets a market of investors, which is narrower than that for traditional housing. The lower entry price partly offsets this reduced liquidity, without eliminating it. Held over the long term, the property also benefits from holding-period allowances, with exemption from capital gains income tax after twenty-two years, and from social charges after thirty years.
Buying a resale LMNP property therefore means favouring immediate yield and visibility over the hope of capital appreciation. Provided you choose a residence type spared by the tax reform and a sound operator, the formula retains a legitimate place in a diversified wealth strategy.
