1. Understanding French Property Law
2. Preparing Your Property for Rent
3. Setting the Right Rental Price
4. Finding and Selecting Tenants
6. Managing the Landlord-Tenant Relationship
Successful property landlords understand that managing rental properties is a full-time job rather than a side gig. It must be completed correctly, and as a result, this position necessitates both execution and planning abilities.
In the long run, becoming a successful landlord is 90% commitment and 10% skill.
The most frequent cause of landlords’ business failure is their inadequate understanding of property laws and unfamiliarity with the landlord’s rights and obligations.
1. Understanding French Property Law
Overview of French rental laws
French Landlord-Tenant Law is primarily governed by:
1. Alur Law (Loi pour l’Accès au Logement et un Urbanisme Rénové) introduced significant changes aimed at regulating the housing market and improving tenant protections. Implemented in 2014, this legislation established rules to oversee rent increases, support tenant protections, and improve the market’s transparency. It also involves guidelines for setting rent limits in areas with high demand and establishing a universal rental guarantee system.
Critical aspects of the law include:
- Rent Control
- Enhanced Tenant Protections
- Diagnostics and Safety
- Deposit and Rental Guarantees
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Property Management
2. The 1989 Tenancy Act (Loi n° 89-462 du 6 juillet 1989)
This law, often referred to as the “Loi de 89” or “Loi Mermaz,” governs residential leases and provides detailed conditions on the rights and obligations of landlords and tenants, including the conditions and notice periods for lease terminations.
3. Elan Law (Loi Evolution du Logement, de l’Aménagement et du Numérique)
This law, enacted in 2018, was designed to streamline and update housing regulations. It includes requirements for faster eviction processes in case of unpaid rent, encouraging shared housing, and introducing new types of housing agreements, like mobility leases (bail mobilité).
2. Preparing Your Property for Rent
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 unbiased details regarding its technical features. These survey reports are collectively known as the dossier de diagnostic technique immobilier and are attached to the agreement upon signing.
It is unlawful to rent a property if it does not meet requirements such as having a window, space for preparing warm meals, heating equipment, and a separate bathroom. Additionally, the building and the apartment must not threaten a tenant’s health and safety.
The apartment/house must be in good working order:
The landlord may only rent out their space when the apartment is in good condition and all equipment correctly functions, such as plumbing, heating, and electrical systems.
Naturally, the apartment may require renovations; however, in this scenario, the landlord and the tenant can decide to lower the rent if the tenant takes care of the repairs. They should add a clause to the lease stating the renovations.
Minimum Space Standards
A single-person home needs a minimum of 9 m² in surface area, 2.20 m² in ceiling height, or 20 m² in total, with a minimum height of 1.80 m. The surface area rises to 16 m² for every two people, and for every extra person, it grows to 9 m².
Minimum Condition Standards
According to the legislation, a property must be in good condition when rented out and for the duration of a tenant’s stay there.
What the law demands explicitly:
- There must be no leaks, and the construction must be watertight;
- Balconies, steps, and floors need to be sturdy and secure;
- Gas and electricity must be safe to use;
- Every room should have enough lighting;
- The ceilings should be sturdy enough to support nothing falling from them;
- There must be adequate ventilation in the area;
- A safe way to maintain the place’s warmth;
- There must be adequate pressure and a sufficient amount of cold water entering the system;
- Wastewater has to be properly disposed of;
- There is no risk of lead poisoning or asbestos inhalation. Cooking space and a sink with hot and cold water are necessities in the kitchen;
- There must be a private bathroom with hot and cold running water and a toilet away from the food preparation area. The bathing area must appropriately drain away used water.
Required diagnostics and certificates:
1. Lead Testing
2. Energy Efficiency (Diagnostic de performance énergétique—DPE)
3. Asbestos Check (Amiante)
4. Electrical and Gas Safety Inspections
5. Natural Risks Disclosure
6. The Environmental Risk and Pollution Diagnosis (ERP)
7. Non-Collective Sanitation Diagnosis
8. Termite Inspection
9. Zone de bruit
10. Television Reception
11. The Boutin Law
The Full List of Official Certificates for French Property Owners considers all these reports in more detail.
Documents annexed to the lease
A technical diagnostic file must be attached to the lease. The file includes the following documents:
- Energy Performance Diagnostic (EDP)
- State of indoor electricity installation
- Lead Risk Assessment (Crep)
- State of indoor gas installation
- Noise Diagnosis
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State of risks (natural, mining, technological, seismic, radon…),
Other documents the landlord also has to attach to the lease:
- Information leaflet;
- State of the place of entry done when handing over keys and the state of the places of departure done when returning keys;
- If the tenant and landlord have agreed to apply a dilapidated grid, a copy of this grid;
- Rental Risk Insurance Certificate that the tenant is obliged to subscribe to;
- Equipment for access to television, Internet (TNT, fiber…);
- If the accommodation is agreed upon with the Anah, a copy of the Anah Convention;
- If the unit is in a condominium, an extract from the co-ownership rules.
3. Setting the Right Rental Price
Setting the right rent price for your rental property means more than trying to make a profit. First, understand that you cannot estimate the rent price of an apartment instantly; you must actively research it.
So, take your time for the estimation process from the start, and do not rush.
We suggest starting by Understanding the French Rental Market.
The level of rent varies enormously over the country, and they can even do so within regions for similar properties. So, it may be challenging to determine the market rent for your property.
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 precise estimate, having an experienced rental real estate agent assess these factors on-site is always a good idea.
The condition of the property you want to rent out directly impacts its price. Renovating your property before renting is advisable to increase your rental income. Additionally, the condition of the building and the common areas also affect the rent price for apartments.
The size and exposure of your rental apartment are equally important factors. For example, a small and dark apartment may be difficult to rent.
If you need tools to determine market rent, have difficulty interpreting the Rental Index (Indice de Référence des Loyers, IRL), and want to know more about Rent control in France, look for our easy guide on Calculating Your Apartment Rent in France.
Modification of Rent
Landlords can increase rent annually based on indices published by the government, typically linked to the cost of living index. While some landlords choose not to increase rents, others may do so. And it’s normal as long as it falls within the current year’s index amount.
Similarly, some rental agreements may include an automatic rent increase for multi-year leases.
A landlord can increase the rental once a year, provided the tenancy agreement allows it.
Missing such a clause means you cannot raise the rent, whether the property is furnished or not. Additionally, regulations restrict rent increases for properties with poor energy efficiency ratings in certain high-stress housing areas.
Nevertheless, the rent increase cannot be higher than the previous letting, adjusted by the inflationary increase in the rental index—the Indice de Référence des Loyers (IRL).
4. Finding and Selecting Tenants
A. Advertising your property
The methods used to advertise rental properties are relatively standard: estate agencies, websites like seloger.com, wunderflats.com etc., ads in local newspapers, noticeboards, etc.
You need to be strategic in marketing your property’s unique qualities because more and more new rentals are hitting the market. Your listing must include one striking photo that captures your property’s key selling points: the views, the gorgeous facade, the top patio, and so on.
Each property has a unique quality, such as incredible views, proximity to schools and markets, a charming town or hamlet, distance and peace, or a popular vacation/tourist area. You must clearly communicate any unique features of your property to potential buyers. Make your home distinctive.
Furthermore, you must match your primary selling points to the essential needs of your target audience. Long-term tenants frequently search for homes that have:
- Good Wi-Fi to allow remote working;
- Adequate heating;
- Proximity to amenities like supermarkets, transportation, and schools;
-
Outside area.
Your advertisement must address every one of these so-called search criteria.
Note: Real estate companies in France with more than ten employees must contribute to an organisme agréé de construction (approved construction organization). This means that they have access to rental properties with reduced rental rates.
Tips and tricks for marketing your property
High-quality photographs
Properties are sold through photos, particularly those featuring the outdoors. Prospective buyers or tenants want to visualize where they will stay and want to see it. Your property’s clean, light, and airy appearance should be highlighted in the photos. Make sure the photos you use capture the unique selling feature of your long-term rental home.
But high-quality photos alone may not always suffice in this fiercely competitive era of French rentals. For example, you could employ high-definition 360° virtual tour films to market the rental property’s benefits effectively.
Concise description
Give a prospective tenant an accurate description of your rental home. In the first two or three lines, highlight the features that make your dwelling unique. You don’t need to list every piece of furniture. Yet, use powerful adjectives such as cozy, roomy, calming, etc. Give them a verbal tour of what to expect from their stay at your rental. Also, remember to provide some recommendations for nearby activities.
Key information
You have roughly a minute to capture a prospective tenant’s attention for your rental property. They are generally interested in four crucial details. Make it easy for them to find it:
1) Price
2) Spacious or not
3) Availability
4) Location
B. Tenant Screening Process
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 looking for apartments to rent 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.
5. Drafting a Lease Agreement
Essential components of a tenancy agreement
The rental agreement, or the housing lease, officially recognizes the transaction between the landlord and the tenant. It covers all aspects, such as the length of a lease, landlords’ and tenants’ responsibilities and entitlements clauses regarding rent and security deposit, and penalties for any breaches of the agreement.
As mentioned, a landlord must provide a formal tenancy agreement, or contrat de location, if the property is the tenant’s primary residence. Many French landlords have their contracts or standard agreements that they can purchase.
A few approaches to the preparation of a tenancy agreement are possible:
- Use one of the standard forms of pre-printed tenancy agreements that can be purchased.
- Use of a property professional such as an estate agent or huissier who may themselves have a model contract that can be used.
- Preparation of an agreement by a notaire who will provide a tenancy agreement as an
acte authentique.
In France, notarizing your agreement isn’t mandatory. But it can add an extra layer of security, making it easier to enforce in a dispute.
Do you know the specifics of rental agreements, like obligatory clauses, landlord obligations, and Illegal clauses in French tenancy agreements, well enough? If not, get familiar with all the steps in drafting the housing lease —it’s the landlord’s blueprint for a cooperative rental experience.
Duration and renewal of tenancy agreement
Typically, a tenant can rent furnished apartments with short-term contracts, up to one year; unfurnished apartments with long-term rental agreements, which are a minimum of three years if renting from an individual landlord or six years if the property belongs to a company. When rented to students, contracts may last the academic year (e.g., mobility lease).
If neither party raises a flag to end the tenancy as the end of the lease approaches, and if you’ve been the model landlord (and your tenant, the model renter), the lease can sail smoothly into renewal.
If the contract allows renewals, a tenant can extend their stay. The rental agreement can be renewed for one year for furnished rentals and three years for unfurnished rentals, with an option to renew again.
Additionally, if the landlord hasn’t given a tenant six months’ notice, the tenant can live in the rental even after the lease has expired. In this case, the rental contract will automatically renew for the duration of the original agreement, and there’s no need to prepare a new one.
6. Managing the Landlord-Tenant Relationship
A. Respecting Tenants Rights
Renters’ rights are heavily safeguarded in France, and evicting someone from a rental property is a complex legal process that requires valid reasons and court approval. While this benefits tenants, it also means that property owners need more and more guarantees. Tenants rights include:
- Property has to respect space measures;
- Apartment/house must be in good working order;
- Permission to make adjustments to the apartment;
- Requesting evidence of payment;
- Right to apartment privacy;
- Tenant’s exclusive right to purchase the apartment;
- Tenants are allowed to vacate the unit with a short notice;
- Tenants’ rights in case the landowner passes away;
- Rights relating to the security deposit;
- During the winter, tenants can’t be evicted;
- Choosing Rent Payment Method;
- Prohibition of clauses absolving landlord responsibilities;
- Tenant’s Privacy and Documentation;
- Right to take legal action against landlords.
B. Landlords’ Responsibilities for Maintenance and Repairs
Landlords in France are responsible for various maintenance tasks related to rental homes. Essentially, the tenant covers the cost of routine maintenance. For example, s/he pays to fix a leaky faucet but not to replace it. Or they are paying only for the use of the elevator but not its replacement. The French Civil Code and other relevant laws specify these obligations.
A few of the landlords’ principal maintenance duties consist of:
1. Structural Maintenance
2. Repairs
3. Plumbing and Electrical Systems
4. Heating
5. Safety
6. Common Areas
7. Appliances
8. Compliance with Regulations
9. Due Diligence and Due Care
The number of complaints about disruptive situations is high on the list of common disputes between landlords and tenants. The inadequate thermal resistance of the walls and windows, the heating system’s malfunction, etc., create difficult conflicts to solve.
But 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, and legal action, which we discuss in detail below.
7. Financial Management
1. Collecting Rent
Typically, the tenant is responsible for paying rent and security deposit directly to the landlord, even if they rented through a real estate agency. However, if a property management company manages an apartment rent, a tenant should pay the rent and security deposit to them.
Generally, rent is due at the beginning of each month. However, if both parties agree, the tenant can also pay the rent quarterly or bi-annually.
A. Methods for rent collection
The landlord can suggest various rent payment methods, including bank transfer, cash (under 1,000 €), check, automatic bank transfer, and interbank payment.
1. Automatic debit from the tenant’s bank account (Prélèvement automatique)
A tenant has the option to provide RIB to your landlord for a direct monthly debit. Surely, provided that both parties agree. Relevé d’Identité Bancaire (RIB) or banking ID details is a document that holds your account details and the national bank account ID or RIB number. However, to do so, you must also sign a SEPA mandate (Single Euro Payments Area) that authorizes your landlord to directly debit your bank account for the monthly rent. While some landlords prefer this payment method due to its reliability and consistency, it is essential to note that they cannot impose this payment method on their tenants.
2. Interbank payment title (Tip SEPA)
This payment method facilitates a direct transfer of funds from the tenant’s bank account to the owner’s without intermediaries such as credit cards, checks, or cash.
However, it is worth noting that the owner must send a Tip to the tenant, which the tenant must sign and return by post before considering the transaction complete.
Still, it is equally imperative to note that the landlord cannot impose a payment method on the tenant. The tenant can decline the landlord’s payment suggestion and choose a different process.
3. Credit Card Payment for Rent in France: Availability and Limitations
Not all landlords or small Property Management Companies accept credit card payments. This is because of the processing fees and the complicated collection procedures. This is especially true in France, where every credit card transaction incurs a merchant processing fee. This makes the payment difficult for individual landlords.
Nevertheless, if you’re working with a real estate agency, you can usually pay your agency fee with a credit card on a POS machine (Point of Sale) at their office.
4. Check Payment
B. Handling late payments and non-payment
If a tenant is late with their payment, the owner cannot charge any additional fees. This applies regardless of whether the apartment is furnished or not.
Also, if the lease agreement includes a clause that permits the owner to impose fines for rule violations, this clause is invalid and unenforceable.
If a tenant fails to pay their rent, the initial course of action is to call them. Sometimes, all it takes is a gentle reminder to fix the issue because the tenant could have forgotten.
Presuming this step is insufficient, send an email or a plain letter stating that rent is overdue. Remember to maintain a professional demeanor and avoid emotional responses for a more successful resolution.
Supposing a discussion has taken place, document the main points in a formal email or letter so that the conversation is documented in writing. This might come in handy for upcoming conflicts.
Explore a detailed guide for landlords on managing situations when tenants miss their rent payments.
2. Tax Considerations
Income Tax
The landlord pays the property ownership tax, the taxe foncière.
Landlords have three options for income taxation on profits from furnished accommodations: micro-enterprise, régime reel, and micro-fiscal for those registered as micro-entrepreneurs.
Taxes are not based on annual revenue (gross income from rentals). Instead, landlords receive a fixed percentage allowance that reduces the taxable base. This deduction accounts for expenses, so landlords don’t need to detail or justify costs.
8. Dealing with Legal Issues
A. Eviction Process
A. Overview of valid legal reasons for eviction under French law
Landlords are limited to three reasons for reclaiming their property:
-
Reclaiming for Personal Use
The property is needed for the landlord’s or a close relative’s use.
-
Intention to Sell Property
The landlord decides to sell the property.
-
Violation of Lease Terms
Should the tenant break any lease terms, the landlord has the right not to renew the lease.
What constitutes a breach of terms
The property owner has the right to reject a lease extension. That is, the landlord or landlady can request the tenant leave due to a rental contract violation.
Lease termination can occur when tenants neglect to fulfill one of their obligations. For example, the tenant may pay rent irregularly, fail to show proof of house insurance, or create disturbances in the neighborhood.
On these terms, the tenant may be required to vacate the premises and return the keys to the landlord by the end of the notice period at the latest.
Examples of legal grounds on which a landlord can evict a tenant in France
- Non-payment of rent and charges.
- The landlord must recover the property for personal use or significant renovations.
- Subletting without Permission
- Allowing people to live in the property not listed on the lease agreement without the landlord’s permission.
- Causing significant damage to the property beyond normal wear and tear.
- Using the property for illegal purposes, such as drug production or other criminal activities.
- Repeatedly causing noise or disturbances affecting the neighbors or the building’s peaceful environment.
- Using a residential property for commercial purposes without the landlord’s consent.
- Failure to perform required maintenance or repairs, which is the tenant’s responsibility, leads to the deterioration of the property.
- Making unauthorized alterations or additions to the property.
- Not allowing the landlord access to the property for necessary maintenance or repairs.
- If the lease has specific pet clauses (e.g., no pets allowed) and the tenant violates these terms.
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Not vacating the property upon lease termination or not following agreed-upon conditions for leaving the property.
When it comes to dealing with rent, if efforts to resolve the situation amicably fail and rent arrears continue, landlords may have no choice but to resort to legal action as a last measure to recover the overdue payments:
1. According to French Civil Code article 1342-4, the landlord has the right to demand full payment and to reject partial payments.
2. If the lease agreement specifies this, the landlord may pursue damages in the event of nonpayment (article 1343-1 of the French Civil Code).
3. The landlord is entitled to collect unpaid rent and maintenance fees for three years after the tenant vacates.
B. Dispute Resolution
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.
Several approaches are available to resolve disagreements. It’s generally best to address issues directly whenever feasible, as this can help prevent potential emotional and financial repercussions that may arise if matters escalate and involve third parties.
In cases where a tenant and landlord cannot resolve amicably, few options are available.
If you need help choosing a lawyer specializing in landlord-tenant disputes, check out our practical tips for avoiding common pitfalls.
Mediation and legal recourse
A. Online Platforms and Tools
DossierFacile.fr is a government platform aiding landlords and tenants in preparing documentation for rental contracts.
Legalstart.fr is an online service that offers customizable legal documents, including tailored rental agreements that comply with French law.
B. Associations and Support Organizations
Fédération des Associations pour la Promotion et l’Insertion par le Logement (FAPIL) provides guidance and support to tenants and landlords on housing issues.
C. Mediation Services
Médiateur de la République provides mediation services to facilitate the resolution of disputes outside the courtroom for landlord-tenant conflicts.
Centre de Médiation et D’arbitrage de Paris
Websites for Legal Information and Templates
Service-Public.fr – This official French administration website provides information and guidance on all legal aspects of living in France, including housing and rental agreements.
ANIL.org – The National Agency for Information on Housing (ANIL) offers in-depth resources on housing laws and tenancy agreements.
Professional Services
Notaires de France – Notaries in France can provide legal consultations and help draft secure and comprehensive rental agreements.
D. Legal Aids
ADIL (Agence Départementale pour l’Information sur le Logement) offers guidance to landlords and tenants dealing with housing concerns, including disagreements. They possess expertise in housing regulations and can assist you in navigating conflict resolution processes.
Conciliateur de Justice: This mediator assists in resolving disputes before they escalate to court proceedings. The service is free of charge and can be accessed through local court (tribunal d’instance).
Legal Aid (Aide Juridictionnelle): Based on specific income requirements, you might be eligible for aid. This support can cover some or all expenses of hiring a lawyer if the disagreement goes to court.
Huissiers de Justice (Bailiffs): Bailiffs may be involved in matters concerning the enforcement of judgments, such as evictions or rent collection. They act upon court directives to ensure compliance.
Bonus tips
Sample Documents
Example of a French lease agreement
Templates for landlord notices
You can use a personalized template for a cancellation letter to your tenant. Simply fill out our online form and download your letter in Word and PDF format. Alternatively, take a look at another template for a lease termination letter given by a landlord.
Rent out with Wunderflats and take advantage of our expert leasing assistance to locate the perfect renters for your furnished flat!
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.
