Lettings Advice
Letting your French home
If you are questioning whether or not to purchase a holiday home in France, primarily because you are uncertain as to how much use you will get out of it, it may be worth considering letting out your home. There are a number of rental options open to a potential landlord. These are dependent upon the property type and location, which will determine whether residential properties can be rented in the short- or long-term. The length of the holiday letting season also differs greatly from region to region, in particular because of the fact that there is a differing climate across France which affects the number of months a landlord can secure rentals for. For example, in the Rhône-Alpes the peak season is predominantly winter because of the ski season, while in the Côte d'Azur it is obviously summer, due to the proximity of the beach. It also differs depending on whether you buy in the town or country. If you buy in a city, you may be able to let to businessmen and holidaymakers for short periods and, in addition, find French tenants looking for long-term lets. As a general rule, cities yield the best rents and number of prospective tenants for long-term lets, while the country is better for the short-term and holiday lets.
Earning an income
The general rule of thumb is that a letting property will produce no more than four to five per cent gross income based on today's property values. This has halved (from nearly 10 per cent) over the past five years as property values have increased but, at the same time, the lettings market has become more competitive. Consequently, lettings prices have been pretty static in recent years. There are always exceptions, but on the whole how well the property photographs is the most important consideration. Prospective tenants are increasingly concerned with aesthetics. After this, it is the quality of the property and its management that will bring the same tenants (or their friends) back year after year.
Finding tenants
Owners of French property have a range of options when it comes to finding tenants and managing their holiday home. If you choose to let privately you can place an advertisement in a specialist publication with lettings advertisements in France,as well as in the home country of your target audience and on specialist websites. In France, local papers also have listings sections of properties for rent. If you would prefer someone else to market your property you can, for a certain percentage of the rent, do it through a local estate agency or holiday- lettings specialist,or,in the case of new-builds,a management company that services the entire building or complex. Tourist offices also market holiday properties.
Managing lets
Overseeing the cleaning and changeover days of properties let for short periods can be difficult to manage from a distance, though not impossible. Some holiday home owners find they can rely on their clients to leave the property in a good state and simply send a key to them, though help can usually be hired in most of France's towns and villages. A local job centre,or Agence Nationale Pour L'Emploi, can be good source of help. Any owner who lets their property for commercial or residential use must, by law, be licensed to do so. Anyone hiring a lettings agent, or agent locataire, should ensure that they draw up a contract to protect their rights and interests. A lettings agent will probably have standard tenancy agreements, but these can contain clauses that are disadvantageous to the landlord. If you are presented with such an agreement, consider asking an independent legal advisor to review it, even if it has been translated into your own language. If you are letting directly to tenants, you should have an agreement drawn up by an experienced lawyer which contains the necessary clauses to protect you as the landlord, and a schedule of the condition of the property (état de lieux).
Tax
As the property owner,you are also obliged to inform the authorities that you are generating income from your property and pay the relevant tax bill. Non-residents must file an annual return for income tax - impôt sur le revenu - if they receive income from letting property or from providing bed-and-breakfast accommodation. If you become involved in the management of any lettings, it may be possible to offset a proportion of your expenses against any income tax paid in another country.