Its rate is set at 15% in the case of rental in the intermediate sector and at 35% in the case of rental in the social sector. In the event of recourse to an organization approved by the State which is responsible for rental management (formula known as rental intermediation), the reduction is increased to 20% in the intermediate sector, to 40% in the social sector, and it reaches 65 % in case of rental in very social sector.

Good to know: thanks to this development, the public authorities hope to encourage more investors to rent to modest tenants. With the tax reduction, all landlords can now reduce their taxes in the same proportions, whereas the previously applicable deduction provided them with variable savings depending on their tax rate. In some cases, renting with Loc’Avantages can even turn out to be more profitable than renting at the market price without tax advantages.

The rent ceiling to be respected by the lessor during the period covered by his rental commitment in Loc'Avantages is not fixed at the national level, but according to an estimate of the market rents applicable in each municipality or, for Paris , Lyon and Marseille, in each arrondissement. The estimate of the market rent is then subject to a discount of 15% in the case of rental in the intermediate sector, 30% in the social sector and 45% in the very social sector.