working as an AE, I rent out my gite for short term holiday rentals. I am considering renting it out for long term rentals. Are there any specific considerations to be aware of in making this change?
I’d never rent long-term again… but many do quite successfully…
Yes and no. We have a long term rental as well as our gîte. Depending on where you are of course, but they earn pretty much the same. The rental is less work.
You have a choice of one year meublé contracts or three year unfurnished. In both cases they are automatically renewable. So once the notice date has passed the tenants can stay. And, the big issue, is that if the tenants don’t want to leave at the end of the tenancy then the only way you can ask them to leave is if you either wish to sell the place (and they have first option to buy) or require it for you own personal use. Even then you can’t ask them to leave between October and March
And after a few years they gain more rights, so if you want to sell a place with a tenant over 65 you have to find them alternative accommodation.
Many tenants do move on quite naturally, but you need to be aware that it may not be easy to get your place back exactly when you want to.
You also need to take great care in the choice of tenants. Because they have so many rights you need to be very sure that they will be good tenants. There is a list of documents and references you can ask for, as well as asking for guarantors.
In French law a rental property becomes the tenants’ home. So they can, for example, have a pet whether you like it or not.
Those are the main issues I can think of…but we have had a rental for 9 years now with no issues (and are now selling as simplifying our life).
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thanks for that Jane. May I ask, are you running as an AE, and are the cotisations etc the same whether it
is long term of a holiday gite ?
No, we stay below €23,000 so are non-professional and don’t pay cotisations - just all the other taxes!!
thanks Jane, I did no know of this. Does this mean that you are not an AE, or indeed any other sort of profession?
Nope, not an AE. If your turnover is less than €23k, and it is not more than half your income then you don’t have to be. Which we preferred as we wanted to keep the option of having an S1 and getting exempt from social charges on our pension income etc.
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that makes good sense Jane. I think our best option is to de register as an AE and obtaining an S1 as our turnover from the gite will be well under that 23k. Do we just apply to the UK DWP for the S1?.
Geoff, if you have been an ME paying cotisations you are no longer eligible for an S1.
Can not see the point of a monthly income of 500 euros and you are still reponsable for taxes and repairs for the tenant.
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Yep… it can be financially disastrous… but I know folk who do rent out longterm, but they have plenty of money anyway… which softens the blow and helps over the difficult times.
that’s interesting Jane, but I am not sure where that leaves me. If I give up being an ME and thus my cotisations, how do I retain my social benefits I wonder
How long have you had your ME and how many trimestes have you got? I am not that strong on the complexities of the French Pension system but basically your French trimestres will be added to your UK contributions and then France will pay the combined pension. You will remain eligible for healthcare usually from CPAM, and your carte vitale continues as normal.
If you have worked in France and paid social security contributions then France becomes your Competent State, which is why you are no longer eligible for an S1. But you don’t get cut off from health care.
The sting in the tale is of course that you won’t get the exemption from CRG and CDSR on your annual income return.
As always a concise and knowledgeable answer from Jane! Her cautions are not to be dismissed. I have a friend in Dordogne who bought a village house as ‘an investment’ to provide a rental income flow from a long-term rental, managed by a local immobilier. She has never received one cent of rent; and even the costs of a court application didn’t get the tenant out.
Don’t even think about it, Geoff!
And for the amount you will receive monthly is it worth it…i would say no.
You still have a certain maintenence responsibility and you have to declare the income. It is income…really not much for the effort involved and the responsibility.
Hello. A very long shot, as I don’t quite know where else to post.
I am desperately looking for somewhere to rent long term, preferably in the Dordogne area, for me, my wife, a border collie, and a cocker spaniel.
As is often the case, there is a long, drawn-out story attached, but we have both owned property, and lived in France for many years, are decent people, and are solvent.
It appears to be very difficult to find anything relatively long term, anywhere. If you have any ideas, or suggestions, or pointers, they’d be most welcome.
Thanks
Chris
Righto… in our commune The Mairie/Commune owns some nice properties. Some are low-rent social-housing, but there are also a couple of properties which are rented out on the ordinary market (not expensive but not low-rent-controlled).
Rentals run from 1 year minimum to more or less as long as one wants. All with the proper Agreements of course.
Might be worth having a word with the Mairies in those areas which interest you.
I’m sure I’ve heard that a landlord cannot forbid pets…
Best of luck
Thank you, Stella.
We’ve tried several mairies, so far, to no avail, and trawled many immobiliers without much success, and it is now becoming quite urgent!
Thank you for your reply, anyway.
Chris
Have you tried pap.fr? Direct long lets from owners
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Oh gosh… this must be worrying… hope you find something soon.