Guide to Letting French Property
Friday 15 June 2007
Traditionally, the main approach has been to let out furnished accommodation on a seasonal basis to the holiday market.
In recent years, however, this market has seen a large increase in supply, and the level of demand has gone down, due in large measure to the sheer number of people who now have second homes in France.
Inevitably, vacancy levels have increased and investment returns have declined. It is not currently the 'easy money' option for investors that it was several years ago.
As an alternative to the holiday market, an increasing number of international owners have been turning to letting on a longer-term basis, either to the indigenous French community, or to those from abroad who may be thinking about relocating.
The regular long-term market is one that frightens many owners, either because they do not speak French, or because of the laws on security of tenure, which are heavily biased in favour of the tenant.
Nevertheless, letting of property is a one of the most fiscally attractive income streams you can have in France, as the tax breaks are not ungenerous, and small landlords are not liable to self-employed social security contributions.
You will need to do your own market research but, in many areas of France, rental levels have risen quite sharply in recent years and there is a shortage of suitable accommodation.
So letting out property in France may not be all glum news!
You can read more at Guide to Letting Property in France.
For the latest in-depth analysis, subscribe to our news service at France Insider.
France Insider is a subscription-based offer which has replaced our previous free Newsletter.