THE RENTAL GUIDE IN PARIS - OWNERS
Renting out your property in Paris is no easy feat. It requires a lot of effort, attention to detail, and accomplishing various steps. This rental guide outlines all you need to know about it.
- How to rent your apartment in Paris
First things first, you need to know how to rent out your apartment in Paris legally. The real estate laws in France have set certain conditions on which a property owner or even a tenant can let out a property.
For primary residences, you're only allowed to rent it out for short periods of time. Any lease established on your main residence in Paris (or anywhere else in France) should only amount to 120 days (approximately 4 months) a year. Typically, you can rent it for about 10 days per month.
If your primary residence is only a rental, you'll only be allowed to sublet the apartment if you've entered into a written agreement with your landlord/property owner.
For secondary residences, you only have two options to rent it out: long-term or short-term. The latter, short-term rental, will require you to declare your intention to let at City Hall. Once that's done, you'll have to request authorization to use your property as a furnished vacation rental (meublé de tourisme). You'll also have to pay a tourist tax for this.
If you're renting out your apartment for a long-term lease, you don't have to declare anything at City Hall. Do note, however, that the minimum period for long-term rentals also varies. It's 1 year for furnished rentals, 3 years for unfurnished rentals, and 9 months for student tenants.
Some useful links:
> Advantages and disadvantages of furnished and unfurnished rentals
> Who is affected by the rental permit?
> How do I rent an apartment through A1 Real Estate?
> Subletting
> Empty or furnished rental?
2. Guarantees
Nevertheless, there are many ways to can insist apply the guarantee requirement.
- Verify The Tenant's Income as More than Three Times The Monthly Rental Fee
- Have The Tenant Pay The Rent Upfront
- Require a Financial Guarantor (can be an individual or business)
- Ask for a Bank Guarantee (Bank will keep one-year rent in an Escrow account)
- Have The Tenant Pay Up to Two Months' Refundable Security Deposit (for potential property damage)
> What to do in case of non-payment?
> Unpaid rent: a new measure in favour of landlords
> Guarantor and surety
> The difference between the deposit and the security deposit
> How much is the deposit?
> How long does it take to return a deposit?
> What is the security deposit?
Important Note: A1 Real Estate takes into account all the provisions and guarantees in order to carefully select the best files and profiles. These files are eligible with financial institutions and rental guarantee institutions—such as our partner garantme.fr—in order to eliminate any risk of unpaid rent.
3. The rental agreement
The rental agreement, more commonly referred to as the lease, serves as the document that officially recognizes the transaction. It lists the rights and obligations of the landlord and tenant. If the rented dwelling serves as the tenant's principal residence, the lease must comply with the rules.
> Advantages and disadvantages of furnished and unfurnished rentals
> Taxation in furnished rentals for non-residents
> Determine the profitability of a rental investment
> The tax regime for furnished rentals
> The different types of leases
> the mobility lease
> The Civil Code Lease
4. The relationship with the owner
The key to a good understanding between the tenant and landlord is respecting and following certain rules.
On your part as the owner, you have to provide a decent property for your tenant, complete with ample security and it should be ready for use. On the tenant's part, they have the responsibility to pay rent on time and maintain the property entrusted to them.
> Mandatory diagnostics
> Who can carry out the inventory?
> The state of play
> Period of notice
> What permissions should the owner ask for?
> What are the rights and prohibitions of the tenant?
> Repairs at the expense of the tenant
> Repairs at the expense of the owner
> Rental management
5. Set the amount of rent - rent control
The lower reference rents, reference rents, and increased reference rents are calculated according to the price per square meter of the property. This area should be identical to the one indicated in all rental leases corresponding to the principal residence of the tenant.
In secondary residences, there is no rent framework (civil code lease). In fact, the Civil Code Lease corresponds to people who wish to rent a secondary residence—a pied à terre—but it can also correspond to companies who wish to rent the place for corporate housing.
Embassies are often interested in this lease. Thus, this lease is subject to the general rules of the civil code. The duration, the terms, and conditions of leave, the rent, etc. are entirely free.
> What surface area should be considered?
> How to calculate the rental yield?
> Agency fees
6. The state of play
The inventory is an important step in the rental process. This is to verify that your furnished property and all its contents, as well as their quality and appearance, remain the same throughout the lease.
As the owner/landlord, you can either do it from end to end (at the start of the lease and at the end of the term when the tenant vacates the property) or include it on the lease as a maintenance requirement.
Who can carry out the inventory?
7. Taxation
Need information for your real estate project purchase, sale, rental or taxation? A1 Real Estate is here to support you.
> Property income: What are the deductible expenses?
> Which tax regime to choose for furnished rentals?
> What is the taxation in furnished rentals for non-residents?
> What is real estate capital gain?
> What is real estate capital gain for non-French residents?
> What is "Non Professional Furnished Rental" ?
Nous mettons en avant votre appartement meublé pour la réussite d’une location. Nos tâches sont les suivantes :
- Rédaction et publication d’annonces sur plus de 100+ portail immobilier dans le monde entier
- Planification et réalisation de visites en personne
- Vérification des profils et des dossiers de location des candidats locataires potentiels
- Établissement d’un bail de mobilité, d’un bail civil cose, d’un bail de résidence secondaire ou d’un bail de logement d’entreprise
- Réalisation de l’inventaire de la propriété avec photos