<div style="display:inline;"> <img height="1" width="1" style="border-style:none;" alt="" src="//googleads.g.doubleclick.net/pagead/viewthroughconversion/1028731116/?value=0&amp;guid=ON&amp;script=0">
CHRISTMAS OFFER Subscribe to France Magazines today click here

Things to know before investing in a buy-to-let in France

PUBLISHED: 12:18 31 January 2017 | UPDATED: 15:47 31 January 2017

Things to consider when investing in a buy-to-let property in France © luzulee / Fotolia

Things to consider when investing in a buy-to-let property in France © luzulee / Fotolia

Archant

A buy-to-let property can be a good way to supplement your income for your new life in France but make sure you understand these 8 considerations first

Renting in small towns and villages is a growing market

With approximately 40% of the French population renting their homes in France there is always a buoyant rental market. In the cities it is common to rent apartments, often for a decade or more. This means in the main towns and cities of France it is often tricky to find affordable and decent rental accommodation, where demand is higher than supply and prices are pushed up. The result is that there is now a rental market for properties in villages and small towns – as long as they enjoy good transport links to the city. Village properties are readily available and buyers can negotiate prices which makes them a good purchase for buy-to-let.

You will get a regular monthly income in euros

Buy-to-lets can be an attractive option for those who are looking for a monthly income. With the pound as weak as it is, rent received in euros is ‘FX proofed’, meaning it is currently worth more than keeping it in sterling savings in a UK bank.

____________________________________________________________________

Related articles

How to find a job in France

How to set up a B&B or gîte in France

____________________________________________________________________

If you employ a management agent then you will need to do little work yourself

Local estate agents working in the rental market operate as management agents. They can often advise whether it is sensible to invest in a property for unfurnished, furnished or holiday lets. Their management fee is just under 10% of the property’s rental income, and this includes the insurance policy against non-payment of rent. In addition to finding a tenant they can help with the bureaucracy.

You can include your rental income in a mortgage application

Your management agent can provide the bank with a confirmed tenancy agreement showing a three-year rental. This rental agreement acts as a guarantee to the bank when they are carrying out their affordability tests and so they may be willing to include the secured rent as part of the mortgage application. If you’re planning to open a B&B or gîte then it is unlikely that the bank will include this unsecured future income in your mortgage application.

____________________________________________________________________

Related articles

Guide to long-term renting in France

How to prepare for your French mortgage application

____________________________________________________________________

You can rent your property furnished

Furnished properties have a standard minimum contract term of one year. Having a furnished property also gives flexibility as many French holidaymakers self-cater which means that a furnished property offers the landlord options if they only wish to rent out the property in the short term.

Or you can rent it unfurnished

If you decide to rent unfurnished you will enter into a three-year lease with your tenant but they can give notice within this time. If you decide to sell your unfurnished rental you need to give the tenant six months’ notice and allow them first refusal to buy the property. This can, of course, work in your favour as you may have a ready-made buyer

You must provide a number of property reports

There are various reports that must be provided by the landlord including energy performance and lead levels in the building for older properties. Improvement works such as upgrading electrical and water services or improving insulation are tax deductible against the rental income.

You can buy through a SCI to avoid inheritance issues

For those who are concerned about inheritance issues there is an option to buy the property through an SCI (société civile immobilière). For others with more straightforward inheritance issues, landlords can buy the property personally.

Steve Gillham runs Alliance French Property and Liaison Construction

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Complete France visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Complete France staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Complete France account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Article by Living France Living France

More from Living in France

Charmaine Raubenheimer left her native South Africa for a new life running a gîtes business in Bouches-du-Rhône in 2011. She explains what she loves about living in Provence

Read more
Provence-Alpes-Cote d Azur
Thursday, November 16, 2017

Not sure where in France to live? We’ve come up with 12 reasons why Brittany is the perfect place to settle down...

Read more
Brittany
Thursday, November 2, 2017

All you need to know about the different gas suppliers and tariffs in France and how to set up the gas supply in your new French property

Read more
Tuesday, October 17, 2017

If you live in rural France then you have probably had to accept slow internet speeds, but there are government plans to make fast broadband available across France in the next five years

Read more

Running a campsite in France can be hard work but offers a decent income and a rewarding lifestyle. Make sure you carefully consider the location, regulations and costs before you invest in a campsite

Read more
Camping in France
Monday, June 5, 2017

You might be booked up for the peak seasons, but how can you make money from your gîte or B&B during the quieter out-of-season periods as well? By knowing your audience and effectively tailoring your marketing, you can turn your French property into a thriving holiday let all year round!

Read more
Running a business
Thursday, June 22, 2017

Seperation, divorce, illness or outliving a spouse results in many women struggling financially in retirement. Don’t rely on your partner to support you in retirement, start planning for your own retirement now!

Read more
Tuesday, May 23, 2017

Don’t fall into the trap of paying huge charges on your investments – use these tips to help you save money and increase your returns to maximise your pension and savings

Read more
Tuesday, August 29, 2017

The French pharmacy is so much more tham a place to pick up your prescriptions. Here are 11 things you might not know about pharmacies in France.

Read more
Healthcare in France
Tuesday, June 20, 2017

It seems unlikely that, after Brexit, British expats living in France will enjoy the same healthcare rights as they currently do, so what will change?

Read more
Brexit
Subscribe today

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

France Forum

Questions about France? Visit our free France forum to get help and advice from thousands of other Francophiles and expats. Topics include: property, tax, law, travelling, pets, education, healthcare and much more.

Join the forum

Most Read

Join us on social media

France magazine
Living France magazine
French Property News magazine

Enter our competitions

Win books, DVDs, travel and even holidays in France in our great competitions! Take a look at our latest competitions…

Enter now