.svg)
Investing in student housing
Investing in student housing is highly strategic: only 350,000 beds for nearly 1 million students.
.png)
.png)
.png)
.png)
.png)
Why invest in student housing?
Investing in student housing is now a highly profitable strategy for real estate investors. The severe shortage in the rental market across major French cities makes this type of investment particularly secure and sustainable, driven by a constant demand for student accommodation.
In France, there are approximately 350,000 dedicated student housing units, while nearly one million young people look for accommodation every year. This structural imbalance between supply and demand guarantees student residences a high occupancy rate and strong profit potential.
How to invest in a student property?
Investing in student housing with LMNP status
Investing in student housing under the LMNP status allows you to benefit from advantageous tax terms. This scheme offers the opportunity to rent out a furnished property, receive regular income secured by a commercial lease, and optimize your student buy-to-let investment.
When an investor signs a commercial lease with a student housing operator, the applicable tax regime depends on the amount of their annual income:
- Co-ownership charges
- Repair and maintenance expenses
- Management and insurance fees
- Local taxes
- Loan interest and financing costs
What are the advantages of investing in student housing?
.png){kind=icon}
Investing in student housing has the advantage of being accessible to households with a limited budget.
Starting prices for 18 to 20 sq.m studios begin at €90,000, offering an average tax-free yield of between 3.5% and 4.5%.
Student residences often offer higher rental yields than other types of residential properties. This is partly because these units are generally smaller in size, which reduces maintenance and operating costs.
Investing in student housing allows you to diversify your income streams while mitigating risks such as unpaid rent, since it is a constantly growing market
The LMNP status allows you to recover the 20% VAT, provided you keep the property for a 20-year period.
By buying a new-build property, you benefit from reduced notary fees of just 2% to 3% of the purchase price.
Invest in service residences with FFI
With extensive experience in student housing management, FFI now operates numerous properties and residences nationwide. Investing in one of our student apartments allows you to grow your wealth free from the hassles of property management, thanks to a commercial lease signed directly with the residence operator.
The residences are located close to schools, public transport, and local shops.
Each residence offers essential key services for tenants' daily lives, such as a laundry room, ironing and kitchenware kits, as well as common areas and co-working spaces.
Communal living spaces are at the heart of our residences, and therefore, at the very center of our attention. All common areas are designed to offer the most pleasant and attractive environment possible.
FFI apartments are decorated to offer a sleek, minimalist environment that is perfect for studying. The apartments are also designed as living spaces with fully optimized layouts.
Mid-sized cities are highly attractive for student rentals, as they offer an alternative to major metropolises where demand is strong but yields are more limited.
When investing in student housing with France Finance, the property's location is a key factor in the success of your project. The accommodation must be ideally located near places that matter most to students:
How to make a successful investment
Invest in service residences with LMNP status
Acquiring a property in a student residence for rental purposes is carried out under the LMNP status (Non-Professional Furnished Landlord). This advantageous tax scheme allows investors to benefit from a tax reduction on their rental income, recover the VAT, and amortize the expenses related to their investment.
To be eligible for student housing investment under the LMNP status, rental income must remain within the limits of non-professional status and come primarily from furnished rentals. The property must be fully furnished, or the owner must handle its furnishing. Finally, the property must not be registered with the Trade and Companies Register (RCS) under the professional furnished landlord status (LMP).
When an investor signs a commercial lease with a student residence operator, the applicable tax regime depends on their annual income bracket:
- If income is under €77,000: the micro-BIC regime applies, granting a 50% tax allowance on rental income.
- "If income exceeds €77,000: the 'régime réel simplifié' (simplified actual cost regime) allows you to amortize the purchase price and rental expenses, creating a deficit that can be carried forward for up to 10 years.
Like any investment under the LMNP status, student housing must include a mandatory list of furniture when the tenant moves in:
What are the risks of LMNP status
Investing in a student residence can offer a great return on investment, but it comes with certain pitfalls. Here are the most common mistakes investors should avoid:
Take action with a tailor-made strategy
Benefit from personalized support to optimize, structure, and grow your wealth.
.png)
.png)
.png)
.png)
What our clients say
I invested in a student apartment with FFI under the LMNP status, and I am highly satisfied. The advantageous tax system allows me to optimize my rental income while enjoying turnkey rental management. The residence is well-located, and the commercial lease secures my investment. It is an ideal solution for building a profitable property portfolio, completely hassle-free.
Find answers to your questions
A student residence is a furnished apartment building designed exclusively for students, offering a range of services such as a reception desk, breakfast, cleaning, and linen supply.
The commercial lease, signed for an average of 9 to 11 years, specifies the guaranteed rent, the breakdown of expenses, and the terms for rent review. This lease is automatically renewed.
Housing is a source of concern for 52% of students. France has over 2.3 million students in higher education, and more than half of them live away from their family home for their studies—meaning 1.15 million students need to find accommodation. However, France only has a stock of 350,000 student housing units, half of which are managed by the CROUS. Supply in this market therefore remains well below demand, especially in major cities. This is further intensified by a growing number of international students who, for practical reasons, prioritize student residences when looking for a place to live.
Under the LMNP status, you can recover the 20% VAT if you keep the property for twenty years. You can choose the 'micro-BIC' scheme with a 50% tax deduction on rental income if your annual revenues are under €77,000, or the 'régime réel' (actual expenses scheme), which allows you to amortize the property's value and deduct almost all expenses.
Global expertise to support your investment journey seamlessly across borders and jurisdictions.
