Section 1: Pre-Tenancy Preparation
Section 2: Tenant Screening and Lease Agreement
Section 4: Property Management During Tenancy
Section 5: Move-Out Procedures
Section 6: Long-Term Property Management Strategies
Section 7: Links to Relevant Articles and Guides
Section 1: Pre-Tenancy Preparation
1. Property Maintenance and Upgrades
Standards and conditions required before leasing (safety, health, amenities)
The landlord must give a prospective tenant several documents. A certified professional in real estate assessment conducts a genuine estate evaluation to assess a property’s state, pinpoint risks, and offer impartial details regarding its technical features. These survey reports are collectively known as the dossier de diagnostic technique immobilizer and are attached to the agreement upon signing.
Required diagnostics and certificates (e.g., energy performance, risk exposure)
The Full List of Official Certificates for French Property Owners considers all these reports in more detail.
2. Legal and Regulatory Compliance
2.1 Registration and legal requirements before renting out property
Business Registration
The detailed rules and procedures outlined for landlords in France, especially for non-residents, highlight the complexity of tax and legal considerations in the letting business.
Whether a landlord is considered professional or non-professional, obtaining a Siret number by declaring their activity to the commercial court (Greffe du Tribunal de Commerce) is necessary for tax purposes. This process is essential for administrative and taxation requirements.
Para-hôtelier
To further classify and possibly shift the status towards that of a business operating hotel-like services (para-hôtelier), the landlord must offer at least three of the following services: breakfast, cleaning services, or supplying guests with linens.
However, if these services are provided on a marginal basis to the main letting activity, the owner retains the status of a landlord of furnished accommodation. For example, if cleaning only occurs at guest turnover, linen change is not regular, or welcoming is limited to key handover, the status does not shift to that of a para-hôtelier.
This definition is crucial for understanding the tax implications and regulatory requirements for landlords in France. It distinguishes between simple rental activity and those offering additional services that could be considered running a hospitality business.
Business Registration Number (SIRET Number)
A business registration number, commonly called a SIRET number in France, is a unique identifier assigned to each business entity. This 14-digit number is crucial for all businesses, including landlords of furnished accommodations, as it formalizes the business’s existence under French law and is used in all administrative dealings, especially for tax purposes.
Obtaining a SIRET number involves declaring rental activity to the relevant authorities, typically the local commercial court or the business formalities center.
You can read more at Permits for Letting Furnished Property in France.
Local Council Registration/Authorisation
Local Council Registration/Authorisation refers to the specific regulatory requirements that landlords must comply with when offering furnished tourist accommodations on a short-term basis. This regulatory framework aims to manage and monitor the short-term rental market, ensuring compliance with local housing policies, safety standards, and tax obligations.
Landlords of “meublés de tourisme” must register with their local council. This process typically involves declaring the property as a short-term rental accommodation, providing details about the property, and obtaining a registration number. You can do so at Déclarer un hébergement de tourisme.
Platforms like Airbnb and other short-term rental services are often bound by reporting procedures to local authorities. These procedures help municipalities monitor and regulate the short-term rental market.
2.2. French Landlord-Tenant Law
French Landlord-Tenant Law is primarily governed by:
1. The 1989 Tenancy Act (Loi n° 89-462 du 6 juillet 1989)
2. Alur Law (Loi pour l’Accès au Logement et un Urbanisme Rénové)
3. Elan Law (Loi Evolution du Logement, de l’Aménagement et du Numérique)
You can find additional legal and practical recommendations in our French Landlord-Tenant Law Now guide.
3. Setting the Rent Price
Setting the right rent price for your investment rental property means more than trying to make a profit. First, you cannot instantly estimate an apartment’s rent price; you must actively research it.
So take your time for the estimation process from the start, and do not rush.
Several factors can impact the rent value of your rental apartment. These include the location, size, condition, and amenities of the property, as well as the current real estate market conditions. If you need a closer look at these matters, we’ve got you covered:
Section 2: Tenant Screening and Lease Agreement
Tenant screenings
Tenant background checks help landlords assess a tenant’s suitability, credibility, and reliability. Landlords can verify a tenant’s identity, address, job status, and income-to-rent ratio by conducting thorough screenings.
Conducting thorough tenant background checks is necessary. It’s a proactive step that shows landlords’ responsibility and commitment to providing a safe and secure living environment.
Conducting background checks on prospective tenants in France is not just about verifying their reliability and trustworthiness. It also involves navigating a complex web of legal considerations, including privacy laws like the General Data Protection Regulation (GDPR) and anti-discrimination laws such as the French Equal Treatment Act, which must be respected.
One of the best ways to achieve this is to perform a tenant screening on all applicants, whether you own commercial or residential properties.
Drafting a Solid Lease Agreement
Known as contrat de location or bail, these legally binding documents are essential in defining the mutual obligations and rights of landlords and tenants in France. So, please familiarize yourself with the specifics of your agreement—it’s your blueprint for a harmonious rental experience.
Want to know more facts about the legal framework, key elements of a tenancy agreement, prohibited clauses, and tenant protections? Take a look at the straightforward instructions for Preparing a French Tenancy Agreement for the First Time.
Section 3: Move-In Procedures
Move-In Inspection
- Conduct a thorough walkthrough with the tenant
- Document the property’s condition with photos and a checklist
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Have the tenant sign off on the inspection report
État des lieux (Inventory report)
After a tenant finds your property, the landlord and tenant need to sign a contract and complete an état des lieux, or inventory and condition report. État des lieux is documenting the property’s condition when you start renting. Likewise, the landlord and the tenant create this report together. The report should include the state of each room, missing items, all existing damages, and if the apartment is clean.
To prevent any disagreement, you can use the service of a huissier (bailiff) when you create this report. Preparing the report will cost around €200-€300, which must be shared between the landlord and the tenant. Usually, when a tenant rents from a rental agency, the agency prepares this report, and its cost is included in the agency’s fee.
You can download the inventory sample or read legal instructions to familiarize yourself with état des lieux’s necessities.
Section 4: Property Management During Tenancy
Regular Maintenance and Repairs
The landlord is responsible for maintaining the property’s condition by making any necessary repairs. This entails fixing any flaws that compromise the safety or habitability of the property. Both landlords and tenants are in charge of some repairs, even though landlords ultimately ensure the rental property is habitable.
Before a tenant moves in, a landlord must inspect and address any potential risks or flaws in the rented property. The landlord may be liable for the tenant’s diseases or injuries if flaws or hazards are discovered on the property.
In other words, the landlord needs to exercise “due diligence.” It is his or her duty to investigate and find any problematic situations. Besides, a landlord needs to exercise “due care.” He or she must act on any flaws, problems, or other discoveries made during the due diligence. In addition to breaking safety regulations, the landlord may also be held accountable for any risks on the rented property. Yet, landlords are not responsible for any dangers that the s/he has no control over preventing.
Repairs that are not considered general maintenance but that can be considered to be due to vétusté of the equipment – meaning it is old and worn-out – are also generally the landlord’s responsibility (however, this may not apply if an item is found to have broken because of improper use by the tenant).
What do landlords’ principal maintenance duties consist of? Examples of repairs that are the landlord’s responsibility, minimum condition standards, minimum space standards, large-scale construction projects, and legal framework… discover all these solutions below:
Handling Tenant Issues
The top three items on the list of rental disputes are security deposits, rental charges, and disruptive situations.
Suppose the complaint concerns something other than the lessor not returning the security deposit. In that case, it usually involves a disagreement over what was agreed upon during the “inventory of the housing” or how much repairs should cost.
There are a few different ways to handle disagreements.
Wherever possible, it makes sense to address issues directly, if only to avoid the emotional and financial costs that can occur when matters spiral out of control and get into the hands of third parties.
If the issue cannot be settled amicably, three significant options exist.
- Advisory Services
- Mediation
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Legal Action
We offer landlords guidance on resolving rental disputes in France, so take a look at How to actually resolve tenant-landlord disputes in France?
Section 5: Move-Out Procedures
Security Deposit Management
While not mandatory, it’s rare to find leases without a deposit. It covers any damages caused by the tenant, property maintenance, and unpaid rent.
It is standard practice for a landlord to ask for a rental/damage deposit from a new tenant, which is refundable at the end of the tenancy. The entry and exit inventory (état-des-lieux) is closely related to the security deposit. When the final walkthrough is perfectly fine, the landlord must refund the security deposit to the tenant 60 days after they move out (“deposit reimbursement duration”) unless the property is damaged.
When the tenant’s stay ends, a final inspection compares the apartment’s condition during move-out with how it was when a tenant moved in. This assessment involves both the tenant and either the landlord or their representative.
Deductions
If the property’s condition at the end matches that at the start, the landlord must refund the total security deposit amount to the tenant. However, deductions may occur in several situations:
- If there are discrepancies in the property condition during moving out,
- In the case of rent arrears,
- any outstanding housing tax,
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If the utility charges the tenant pays are less than the expenses incurred.
In these scenarios, the landlord can withhold some or all of the security deposit with appropriate documentation (quotes for repairs, bills, property inspection reports, receipts or estimates for repairs or replacements, etc.).
Code Civil leases, which include corporate and secondary residential leases, have a maximum rent payment of two months (rental expenses included).
The maximum rent for a primary residence lease is one month for unfurnished properties and two months for furnished flats (not including rental fees).
When renting vacation homes, the security deposit should be no more than 20% of the rental cost (or 25% if a mediator like a real estate agency is involved). Tenants should also pay no more than six months before the rental period.
Section 6: Long-Term Property Management Strategies
1. Continual Learning and Improvement
Whether you’re just starting out or have been in the game for a while, a landlord training course is a practical investment of your time and effort. These courses give you the lowdown on your responsibilities, dealing with tenants, and managing your property like a pro. The practical skills you gain will be, indeed, immediately applicable to your role as a landlord.
Furthermore, by focusing on aspects like attracting buyers, maintaining properties, and ensuring tenants meet their lease obligations, you can steer clear of issues and create a well-run environment that appeals to property owners and renters alike. These programs cover types of properties such as homes, vacation rentals, and commercial spaces, giving you a comprehensive educational experience.
2. Hiring a Professional Landlord Property Manager
A landlord manager in France typically takes care of things on behalf of the landlord. The landlord/landlady authorizes a landlord manager to handle the leasing process of their properties.
Landlord managers are responsible for minimizing property owners’ risks. To do this, they handle various tasks, from conducting market research to lease negotiations and beyond.
Furthermore, the landlord’s manager handles tasks related to managing the property, such as collecting rent, overseeing maintenance and repairs, and addressing tenant concerns. Discover some specific roles that a landlord manager might fulfill:
Additional Resources
Staying updated with the latest legal changes in the rental market
Related Topics to Consider
Maintaining a rental home might require considerable work. Prospective landlords can, therefore, find the following solutions helpful:
- Become a Successful Landlord in France: All You Need to Know
- Preparing French Tenancy Agreement for the First Time
- Renting Out Apartment in France: Legal and Practical Tips
- Tenant Lease Breaches in France: What New Landlords Should Know
- Practical Benefits of Furnished Apartments in France
- French Landlord-Tenant Law Now
- Exclusive Landlord Rights in France: Know Your Legal Position
- How to Secure Your Investment in France with Landlord Insurance
- The Dynamics of Being a Successful Live-In Landlord
- Expert Tips on Finding the Right Landlord Lawyer in France
- Most Important Landlords’ Duties In The French Rental Market
- Choosing the Right Landlord Agent in France: Ensuring Top Quality
Section 7: Links to Relevant Resources and Associations
For landlords in France seeking resources, there are several legal, advisory, and support services available to aid in effective property management and legal compliance:
Legal Advice and Associations:
- UNPI (Union Nationale des Propriétaires Immobiliers): This association provides advice, training, and legal resources tailored explicitly for property owners in France. It offers various services, including legal consultations and representation in disputes.
- CNAB (Confédération Nationale des Administrateurs de Biens): CNAB offers support and advice for property managers and landlords, covering lease management and property regulations.
Online Resources and Tools:
- Service-public.fr: A comprehensive government portal that provides information on legal obligations for landlords, including templates for rental agreements and details on required diagnostics before renting.
- Mon-Immeuble.com: A platform offering news, legal articles, and practical guides on property ownership and management in France.
Legal Aid:
- Bureau d’Aide Juridictionnelle: This office is available at local courthouses. It provides legal aid for those who qualify based on income, covering part or all of the costs associated with legal proceedings.
- L’aide Juridictionnelle: This program allows landlords to apply for state assistance in covering legal fees, which is necessary for landlords who might face legal challenges but lack the resources for extensive legal battles.
Looking for help with becoming a landlord of a furnished rental in France? Join Wunderflats today and discover how easy it can be to find the ideal tenants for your property!
Please note: This article does not constitute legal advice – the information on this page has been prepared solely for your information. As we are not a law firm and act as a platform, we can and may share our estimations, but we cannot give you legal advice for your individual further proceedings.
