Property in France - long-term letting

Some property owners in France have been actively involved in the long-term rental market for many years and have managed to maintain regular bookings of around six months or more. They are well acquainted with how the system works and know how to attract and secure a good tenant.

Others may have considered it as an option but been put off either by the daunting responsibility of being an overseas landlord or because they don’t know where to start. However, if you understand the background to this niche market and remember some basic guidelines, long-term letting can be a great way to make your French home pay for itself.

Why let your property long term?

Owners decide to offer long-term rentals for a variety of reasons:

Leaving the house empty for several months of the year is generally not the best way to keep it in apple-pie order

They cannot make full use of it themselves due to changes in personal circumstances

They would prefer to sell up but cannot because of prevailing market conditions

Holiday bookings during the summer months may have been disappointing resulting in lower-than- anticipated income from the property

They want or need an extra revenue stream

What is long term?

Everyone has a different view on this but we would generally consider long term to mean anything from three months upwards. The majority of bookings we process are for periods of six to twelve months, with some as long as three years. Occasionally owners have taken bookings as short as one or two months but generally only to fill a gap between other longer bookings. Therefore we should consider six months to a year to be typical.

What type of tenants are looking for long term?

Long-term tenants cover a very wide spectrum. It is an easy mistake to make to assume that all long-term tenants are prospective buyers from the UK, and that the market has been eroded over the past few years.

Certainly this market has been fragmented with those buyers who were simply after ‘a cheap holiday home’ now looking in countries other than France, but the true Francophiles are still looking.

Also, these are just one sector of a diverse and international market. Retired people account for a good number. They have the time available for a long sojourn and can rent out their own house in the UK and spend six months or so off-season in a favourite area, and escape the crowds.

Nor are all tenants by any means from the UK. We have had long-term bookings from a whole host of countries: the USA, Canada, a substantial number from Australia, also Ireland and various countries of mainland Europe. The market is not necessarily dependent on the fluctuations of the UK economy nor is it as volatile as the holiday lets market.

What do long-term tenants want?

This is something we are regularly asked and frankly it is difficult to generalise about types and sizes of property, also about individual areas of France. Some tenants want old, others modern properties; some look for a compact two-bedroom cottage, easy to heat and clean, while others need four or more bedrooms and plenty of space for friends and relations who might visit.

What is crystal clear is that the vast majority of long-term tenants do want a good standard of accommodation. They are not going to want to rough it so if you are entering this market, do make sure your property is up to scratch.
Many long-term tenants will want to make a site visit prior to confirming a booking as they would not make the decision in the same way as they would for a week’s holiday. Also this would give you, as the owner, the opportunity to meet prospective tenants, clarify any points they were unsure of and get to know them.

It is easy enough to come up with a simple check list and be prepared:

Ensure the property is clean, tidy and in good decorative order. If a few running repairs are needed, then a few hours with a paintbrush and good spring clean – whatever the time of year – will pay dividends.

Make sure the property is well equipped. You should have plenty of cutlery and crockery – do replace any chipped or cracked items – also pans and cooking equipment. A trip to IKEA will not break the bank. In winter months your tenant will not be barbequing sausages in the garden every evening so make sure all your cooking equipment is in good working order. A washing machine is also a major plus point so if you do not have one there already, consider it as an investment.

Heating. This is absolutely essential if letting over the winter months. Ensure that central heating is serviced and working well, radiators bled if need be, and if you have oil-fired heating make sure there is a good supply in the tank. A tenant should be asked to refill the tank to the same level at the end of the tenancy and if there is an open fire or wood-burning stove, an initial supply of logs is always welcome.

Bed linen. Some tenants will want to bring their own but do not assume this and be prepared to supply sheets etc if necessary.

Creature comforts. If the property does not already have a TV, radio and CD/hi-fi then you should seriously consider providing these. You want a prospective tenant to remember what the property does have rather than what it doesn’t.

A file of local information can be a great help to a new tenant. Include details of recommended local shops and restaurants, also phone numbers for doctors, dentists, tradesmen and emergency services. Leave instruction manuals or leaflets for electrical equipment, central heating etc. Also, do try and introduce tenants to your neighbours if at all possible so they can begin to feel part of the community.

On the financial side, be prepared for some flexibility. You will already have agreed a monthly rent with prospective tenants but if for example they were to pay six or even twelve months’ rent upfront – yes, we have known this happen – then you may well offer a discount for these kind of terms.

How to avoid potential pitfalls
 
If you decide to enter the long-term rental market, you want a friendly and uneventful relationship with your tenants, with no unexpected surprises – of the unwanted kind – for either party. So a few good ideas might be as follows:

If the house has been empty for a while before the tenant arrives, do make sure that is well aired and the heating is on. Get off to a good start by making the house as welcoming as possible. 

Have a French tenancy agreement drawn up. This will specify the exact duration of the booking, the rent payable, payment terms, security deposit and your own specific terms and conditions.

Be flexible on dates if at all possible. You may start off only wanting winter bookings but there are many tenants wanting long rentals all year round so if your holiday bookings have not been up to expectations think about longer rentals all year.

Check that your property and contents insurance is
up-to-date and do inform your insurers that you have tenants in.

Make it crystal clear what is and what is not included in the rent. A long-term tenant would normally pay for utilities, ie gas, electricity, oil, water, phone etc, also taxe d’habitation. These should be detailed in your tenancy agreement.

House rules. Do be clear about how the property must be treated. If pets or smokers are on your ‘do not want’ list then do check with the tenants. Even if you accept pets, check the number and type of animal the tenant is intending to bring. Do have a policy about gardening. Do you have a local gardener or do you want the tenant to maintain it?

Letting out your property long term can provide some useful extra income as well as other benefits and following some simple guidelines should help pave the way to successful rentals.