Anothernevis

Hi, I am considering buying some apartments in France to rent out to generate an income when l retire. Please offer opinion on the pro's and cons. Vacation short term versus long term etc.
Thanks.

dmu

Hi, and welcome to the forum!
Tenants are highly protected in France, which is why French landlords require proof of a regular income 3-4 times the rent before even considering potential tenants. But even high-income tenants can be dishonest, as we discovered to our cost. Ours stopped paying their rent and the Court Procedure to evict them took at least 18 months. Naturally the Judge found for us and sentenced them to pay the rent due (which came to 5 figures), but, of course, they had disappeared, and didn't.
(We have since taken out an insurance against non-payment of rent.)
Another drawback is the complicated administrative side - dealings with the "Syndic" of the appartment block(s), tax declarations, to name but a few. There's not a lot left after the Agents' fees, communal charges, repairs, Taxes (including Taxe Foncière)... have been paid out. On average, over a year, you'd be lucky to put 1/2 of the rent in your pocket.
We've only got one appartment - The hassle involved would be multiplied by the number of appartments owned....
We bought the appartment as an investment for our daughters (who are now owners and we have usufruct) and live on our Pensions, but none of us would be able to live on the income generated.
Just my penny's worth, based on a bad experience!
P.S. How is your French? and where will you be living (with respect to the rentals) after retirement?

cyrian

From experience of renting in France, even if you speak french, there are lots of words and expressions that are specific to rental agreements.
France from a legal point of view is very formal and rigid in its procedures.
As a Brit, it always strikes me as strange how their "old fashioned" systems work - but they do work.
Do not expect to make money from the value of the properties. Other than perhaps Paris or Lyon, properties do not appreciate greatly in value as they do in the UK.
Why do you want to do buy-to-let in France?
Do you intend retiring to France?
If so, you could retire to France but do buy-to-let in the UK.
Usually, the UK is less complicated than France for running a business and UK rental income is taxed in the UK, even if you are resident in France.
Good luck

EuroTrash

Holiday lets and long term rentals are very different games in France - different rules to learn and comply with, different tax regimes, different challenges.
A friend of mine has just bought a yard full of lock-up garages to rent out, and to me that seems like a very smart investment.
Do you live in France? That also makes a big difference to how viable either would be. Employing a keyholder/changeover person for holiday lets, would change the equation quite a lot. As would using an agency for long-term rental, although TBH, if you're not familiar with French tenancy regulations an agency could save you a lot of money overall.

dmu

- Excellent idea! In another life when I lived in Paris and had the hare-brained idea of buying a car from friends who were leaving France, I had to pay the earth to rent an underground parking spot. Even in a small town, garage space is at a premium nowadays....
- Our Agency has just sent us the figures for our Tax Declaration form. No excuse for putting it off, now, but we do hate doing it on-line....