Are you interested in investing in rental real estate? Keep in mind that you’ll need to follow certain steps and comply with a few legal requirements. L’Agencerie, your network of real estate agencies, shares a “to-do list” to help you successfully launch your rental investment project.
Do you have a real estate project in mind? Contact our real estate agency in Bordeaux Chartrons or our real estate agency in Albi.
Choose the type of rental
Before purchasing the property, you need to determine which type of lease is right for you. For example, you can choose between:
- Unfurnished rental: The lease agreement is renewable every 3 years.
- Furnished rentals: The lease is renewable annually (the lease is limited to 9 months and is not renewable if the property is rented to a student).
If the property is not the tenant’s primary residence, the tenant may occupy it on an occasional basis (seasonal rental).
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Rental Management: Do It Yourself or Hire a Professional
Rental real estate is more than just a financial investment. It requires time, a lot of energy, and certain skills.
Given the technical, legal, and administrative aspects of rental property management, this field may require certain specific skills. A lack of proficiency in these areas could lead to the failure of the rental project.
Are you convinced of the benefits of working with a top-notch professional? Let us handle the rental management of your property in Albi and the rental management of your property in Bordeaux Chartrons.
Contact a real estate inspector
You are required by law to have your property inspected before renting it out. These property inspections include:
- The Energy Performance Certificate (EPC).
- Lead Assessment.
- The ERNT (Assessment of Natural, Mining, and Technological Risks).
Setting the Rent
You should research the average market rent before setting the rent for your apartment. It is also important to take local regulations into account, particularly those regarding rent control.
Choosing a Tenant
To find the right tenant, you can conduct your own search or contact a real estate rental agency. In any case, look for a tenant who has the financial means to meet their obligations. This is essential to avoid the risk of unpaid rent. Therefore, a thorough review of potential tenants’ applications is necessary.
Develop a protection strategy
As a landlord, you are not required to purchase landlord insurance, rent default insurance, or require a guarantor. However, these protections are necessary to safeguard against the consequences of a tenant’s default or a property loss.
Draft the lease agreement
A lease agreement may take the following forms:
- an authentic instrument.
- a private document.
This document must include information about the owner, the tenant, and the property in question:
- the names of the two parties to the contract.
- the type of housing.
- the terms of rent payment…
Tax Procedures
Rental income is subject to income tax. The tax authorities impose penalties for failure to file a tax return or for filing it late.
Good to know: The tax treatment of your residence varies depending on its status (unfurnished or furnished rental).
Landlords: Did you know that you can adjust your rent annually? Check out a very interesting article on the Kallisté Conseil blog.
L’Agencerie –
