10 points to check before renting your holiday home
As many owners, you may wish to rent your holiday home. Here is the list of the most important points you should check before doing so.
1-The rental period: Key point of decision
The rental period will depend on the location of your property and also on which periods you want to live in it. The location also determines the duration of the rental. For example, properties by the sea can rent up to 30 weeks per year, whereas only 5 to 7 weeks if located in the countryside.
2-Practicable prices
As offers are quite numerous; you need prices in line with the rents in your area. In order to determine the rent, you need to consider the period of rent, the level of comfort and special services offered by the housing:
-pool
-close to the beach
-parking space
It is possible to impose a minimum stay during the high season. In contrast, during the medium and low season, do not hesitate to settle package prices for the weekend or night.
3-Necessary adjustments
Provision should be made for possible arrangements. For example, some small works might be needed to secure your property, or even heavy works such as creating a bathroom or toilet, in order to make your French property more attractive.
You may need to complete your equipment appliances also depending on the periods of rent.
Remember to keep a space in your house for personal belongings.
4-Requirements of direct management
If your second home is not located near your main house, it is imperative to have a reliable person on site, who can give and take the keys, make statements of entry and exit and solve problems . Without this flexibility, direct management is not possible.
5-Tracks to find tenants
To advertise about your home, numerous means are at your disposal: newspapers, reservation centers, tourist offices, and especially non-professional rental websites. If the announcements are well detailed and illustrated, vacationers can get a better idea of the location and immediately know their availability.
6-Paperwork
You are required to give the tenant a comprehensive description of the leased premises (Decree of 16 May 1967). This document must be submitted prior to the contract. The lease is not mandatory but recommended. You will specify in particular the duration of the lease, the amount of rent, deposit, any supplements such as cleaning fees, tourist tax, spending and electrical heating. Contract templates are available from tourist offices. It is not compulsory but prudent to establish an inventory.
7-Guarantees to ask for
You can request an initial payment before the signing of the contract, to ensure reliability of the reservation. This usually amounts to 25% of the cost of the rental, in the form of a deposit (art. L.114-1 of the Consumer Code). If the tenant changes his mind about the reservation, he loses the amount paid on booking.
You also have to ask for a security deposit, in case of default of payment of rent or damage. You will set it freely, it is not regulated. In general, it is 50% of the rental amount.
8-The importance of delegating management to an agency
If you do not want or cannot do manage the renting yourself, contact a local real estate agency. An on-site agent handles all advertising, visits, and drafting of the contract inventory. You will receive the amount of the renting at the end of the stay. The cost is significant: a real estate agency bills its services between 20% and 30% of the rents.
9-Financial aid
If you need major work done on your property in order to rent it, you may want to rank your furnished housing in tourism. You will be able to receive financial aid equal to about 20% or 30% of expenditures. But you must also adhere to a national label, such as Gîtes de France, Clévacances… and commit to rent your property for at least 10 years, this period is determined by the label.
10-Taxes payable on the rental income:
Up to 5,963 Euros/year: 0%
From 5,964 to 11,896/year: 5.50%
From 11,897 to 26,420/year: 14.00%
From 26,421 to 70,830/year: 30.00%
Beyond 70,831 Euros/year: 40.00%
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Be ready!