RENTAL MANAGEMENT MANDATE
The representative may be:
- A property manager
- A trustee
- A real estate agency/ agent
- A notary (even if it's not their core business)
The property management mandate should include:
- The identities of both parties
- The designation and description of the property
- The various tasks entrusted (i.e. precise estimation of the price of rent, taking charge of and terminating the technical diagnostics, dissemination of the advertisement, management & planning of visits, studying the tenant files, drafting of the lease and act of guarantee, carrying out of the inventory of fixtures, etc.)
- The fees and general conditions of the contract
- The registration number of the mandate
- The professional card of the agent
- The number of the professional liability insurance policy
- The financial guarantee of the agent
Moreover, the property management mandate must respect certain rules, such as:
- The contract is drawn up in duplicates (one copy for each party)
- Submit to the directives of Article 1984 of the Civil Code, the Hoguet Law (No. 70-9 of 02/1/1970), and Decree No. 72-678 of 20/07/1972.
- Be registered in the Register of Mandates of the professional who will serve as the representative.
- What are the different types of rental mandates?
There are three (3) types of property management mandates:
The Simple Property Management Mandate - Rental management can be entrusted to multiple agents. The owner/landlord remains free to find a tenant through other agents or on his own too.
The Exclusive Property Management Mandate - The hired agent is the only one who can manage the rental property and find a tenant for it. The owner/landlord is prohibited from hiring other agents and finding a tenant on their own.
The Semi-Exclusive Property Management Mandate - While the owner/landlord is prohibited from hiring other agents but they're free to find a tenant on their own instead.
A rental management mandate is concluded within a fixed period because the Hoguet Law prohibits management mandates for an indefinite period. Generally, this duration is one year, with an automatic renewal that is limited to a total duration of 10 years.
2. What are the tasks of the agent?
- Estimate the price of rent
- Create the property listing and list on multiple channels
- Vetting tenants
- Organize viewings
- Draft the rental contract (lease)
- Set up the inventory of fixtures (move-in and move-out inspections)
- Conduct the property surveys: technical diagnostics
- Manage the rental during the lease
Important Notes:
- Some agents also offer support in the tax declaration of rental income.
- A1 Real Estate takes into account all the provisions, and guarantees, in order to carefully choose the best files and profiles. These files are eligible with surety organizations and rental guarantors (i.e. our partner garantme.fr) in order to eliminate any risk of unpaid rent.
3. How much does a rental management mandate cost?
The remuneration of the agent is negotiated between the owner/landlord and the agent. Generally, this varies between 5% to 20 % TTC of the sums collected (depending on the services offered).
4. Documents to be provided
- A photo ID,
- K-bis extract and the articles of association (for companies)
- Title deed
- Civil status record of the owners
- A copy of the property tax
- Energy performance diagnostics
- Certificate of the living space
- A maintenance certificate
- Finding the risks of exposure to lead
- The Asbestos File of the Private Portions
- Certificate of non-occupant owner's insurance
- The last statement of co-ownership charges (if the property is in a condominium)
- Co-ownership regulations if applicable
- A RIB (Bank details)
- Special tax regime
- Floor plan of the apartment (if available)
- Three sets of keys and/or access code
If the property has been rented previously, the required documents include:
- An identity document, a RIB, and the contact details of the tenant
- The price of rent (excluding charges)
- Copy of current lease
- Copy of the inventory of fixtures of entry
- The date of the last payment (previous tenant)
- The work carried out and the amount carried out after the rental of the property
- A certificate of insurance
- The latest meter readings (gas, electricity, and water)
- A certificate from the CAF (in case of unpaid rent)
- Tenant account statement or rental status statement
- Tenant's file with contact information
- Tenant's insurance certificate (should be valid)
- Annual boiler maintenance certificate (if applicable)