Putting an apartment on the rental market requires careful planning, particularly in the high-end property sector, where tenant selection, rent setting and compliance of the file all have a long-term impact on the value of the property. Between legal obligations, choosing the right type of tenancy agreement and protection against unpaid rent, every step needs to be anticipated. Here is how to rent an apartment under the right conditions, from carrying out the required inspections to signing the tenancy agreement.
Renting through an estate agency or opting for direct management?
Managing an apartment rental yourself requires time and a good understanding of the obligations incumbent on landlords: drafting the tenancy agreement, carrying out the inventory of fixtures, collecting rent and handling any disputes. This option remains feasible for an available and knowledgeable owner, but quickly becomes time-consuming as the rental portfolio grows.
Entrusting the rental of a property to an agency through a property management mandate makes it possible to delegate all these tasks: finding a tenant, thoroughly checking the application, drafting the tenancy agreement, collecting rent and managing the property’s technical needs. This solution comes at a cost, generally expressed as a percentage of the rent collected, but it helps secure the landlord-tenant relationship and frees up valuable time, particularly for owners with several properties or those living far from their rental property. To find out about the cost, simply contact an estate agency that interests you.
Furnished or unfurnished rental: which is the right choice?
The choice between a furnished and an unfurnished rental determines the length of the tenancy, the security deposit and the applicable tax regime for the income received. Here is what you need to know:
- A furnished tenancy agreement is generally concluded for one year, renewable, compared with three years for an unfurnished rental.
- Income from furnished rentals falls under the industrial and commercial profits (BIC) regime, while income from unfurnished rentals falls under the property income regime: two tax systems with different deduction mechanisms, which should be assessed according to the landlord’s financial and property situation.
For character properties, furnished rentals can enhance the value of carefully selected furniture and décor, provided the list of equipment required by law is complied with: complete bedding, cooking hobs, refrigerator, sufficient crockery, etc. This type of rental is suitable both for temporary tenants and for professionals relocating for work who are looking for a turnkey home.
Unfurnished rentals, on the other hand, reduce tenant turnover and are better suited to tenants wishing to settle permanently in a sought-after neighbourhood, with a notice period generally set at three months, reduced to one month in areas subject to rent pressure and in certain specific circumstances.
How to rent an apartment? The key steps involved in letting a property
Before a property is offered for rent, it must meet specific standards of decency: minimum floor area, compliant electrical and heating installations, and the absence of risks to the tenant’s safety or health.
Several inspections are mandatory to compile the technical file, starting with the EPC for a rental property, whose energy rating now determines whether the property can be placed on the rental market. Under the Climate and Resilience Act, energy-inefficient properties (rated F or G) are subject to rental restrictions, with a strict ban applying to the most energy-intensive homes.
Once these checks have been completed, the tenancy agreement must be drafted carefully, specifying the duration, rent and service charges, as well as the security deposit conditions. The rent must be set taking into account the local market and applicable regulations, such as rent controls in Paris. This can be a delicate exercise for sought-after addresses, where the difference between two comparable properties can quickly distort an estimate without detailed knowledge of the market.
The final step is finding the right tenant: publishing a complete and compliant listing, organising viewings, then checking the application file (prospective tenant’s identity, proof of income and guarantors) to assess the solvency of the selected applicant or applicants.
How can you protect yourself against rental risks?
It is not simply a matter of knowing how to rent an apartment, but also of ensuring the security of your rental investment. A rented property remains exposed to various risks: damage, rental vacancies or unpaid rent. How can you protect yourself? Two solutions are particularly recommended:
- Taking out non-occupying landlord insurance (PNO) is strongly recommended, in addition to the home insurance taken out by the tenant.
- Taking out rent guarantee insurance (GLI) helps secure rental income in the event of tenant default. This safety net is particularly relevant for a property investment intended to generate regular income.
Renting an apartment under the right conditions therefore requires rigour at every stage, from preparing the diagnostic file to selecting the tenant. Our agencies assist any owner wishing to receive support when renting out an apartment, from estimating the rent to providing full property management. They handle many apartments for rent, including properties in the luxury property market.
