How to extract an income from holiday property in France

Taking into account repairs, taxes and utilities, the maintenance of the resort property that is not a primary residence can cost up to 2-3 % of market value, according to Laurent Diemer, head of Coldwell Banker France and Monaco. Due to the significant cost, many owners seek to extract an income from the object, for example, by leasing it.

“This practice is common among young owners, for whom a second home like any other asset, is the object from which to extract profit. Sometimes it is enough to take property for one month once a year to cover most of the costs for the maintenance,” says Demer.

Besides the usual rent, there are other ways to make money on real estate, for example, you can rent it out to movie companies for filming movies, vacationers, for special events or to sell wine, and olives. On vacation, you can also exchange the property on the same object in a different city or country — although in this case we are not talking about money and about saving money.

Correctly chosen dates

The most common way to benefit from real estate is to rent it out when not in use. This solution is best suited for owners of holiday homes, villas on the Cote d’azur and chalets in the Alps. To optimize profit within the minimum time frame possible, if you take in certain months of the year.

“The owner, who wants to earn a substantial sum should be rent, when demand reaches its peak. To get income from a Chalet or apartment in the mountains, you need to look for tenants for the whole period of winter holidays. Ski resorts located at lower altitudes, it is possible to find tenants, even in summer. In Brittany the best months to rent — July and August. On the Cote d’azur at home most in demand in the autumn, during the carnival,” explains Jean-Michel Caumont, Chairman of resort real estate at the National Association of French estate agents (FNAIM).

With the exception of ski resorts in the winter to take the property unprofitable. From November to April you have to pay for heating, and rental rates are reduced.

French Emma and Herve Marie for several years 10-15 weeks a year passed the house in Maubec (Provence — Alpes — Cote d’azur) and earn 10-15 thousand euros annually. This amount covers the expenses of the family, the remainder went for the maintenance of housing. Wife Marie are watching the condition at home: do chores, cleaned the pool and took care of the garden.

“We passed the house only in spring and summer, because during the cold season real estate brings a little because of heating costs”,— says Marie.

Time, when given the announcement of the surrender of the property, also has more value.

“There are two peak demand from summer visitors: Jan–Feb for large and rare homes, which reserve in advance, and April–may for all other types of real estate,” says Jean-Michel Caumont.

Consequently, that housing is not empty in the summer, the owners must file declarations at the beginning of the year.

The whim of the tenants

Before you rent property, you will have to invest a lot of money because the tenants always want to feel no less comfortable than in your own home. For example, it is compulsory the presence of a dishwasher and washing machine and a flat-screen TV. Experts suggest to get a universal voltage adaptor for foreign tenants, conduct Wi-Fi and buy an extra mobile phone with SIM card for emergencies. Recently began to demand a house-cleaning during the stay and before departure, change of bed linen.

“Five-star” house

Just like the hotels in France, holiday property can be rated from one to five “stars”. To obtain it, you need to contact a licensed real estate expert or representative of the Agency for tourism development (Agence du développement touristique, ADT). The certificate on assignment of “stars” worth from 100 to 250 euros. Takes into account different factors: the area of bedrooms, number of bathrooms, safety of wiring, quality appliances and more. The presence of “stars” that attracts tourists and allows the owner to benefit from tax incentives.

If the annual income does not exceed 32 600 euros, the tax from it belongs to the category of micro-BIC (income from industrial or commercial use) and provides a discount of 50 %. The deduction reaches 71% of the income to 81 500 euros, if the object is a “star” classification. If the owner receives more than 81 500 euros per year, the tax rate will be 20 % (for nonresidents) without any deductions.

Reasonable rent

Holiday homes in France rented out at an average € 1,000 per week, but depending on the season, area of the property and its location, the tariffs vary considerably. For example, the Studio on the territory of the Jura mountains you can rent for 300 euros per week, a Villa in Deauville (lower Normandy) — 7 000 Euro, house first line to the sea on the Cote d’azur for an even greater amount.

According to the information portal Abritel.Fr pool adds to the cost of the lease up to 800 euros. And the sea or, for example, the Mont-Blanc massif, makes the property twice. However, those without measure to increase the rent, you can lose tenants, and their homes will be empty for weeks.

Besides the rent, the owners have to charge the tenants security Deposit, the amount of which is equal to one third of the rental cost. It is returned to the tenant if he did not cause the property damage.

Before you hand over the house to rent or to swap housing with another person, the owner is obliged to notify the insurance company. Many organizations, for example, Matmut and BNP Paribas Cardif, allowed to give the property in the wrong hands no more than three months. There are firms, including Axa, who see this as additional risk and require additional payment in the amount of 5-10% of sum insured.

The Department	Region	The rent		Allowance in the presence of pool
		Apartment	House
Ariège	MIDI — Pyrénées	670	434	470
The Loire-Atlantique	Land Of The Loire	774	891	210
Bouches-du-rhône	Provence — Alpes — Cote d’azur	788	990	650
Vendee	Land Of The Loire	704	738	210
Var	Provence — Alpes — Cote d’azur	981	1 382	650
The Hautes-Alpes	Provence — Alpes — Cote d’azur	569	590	650
The Top Of The Pyrenees	MIDI — Pyrénées	438	858	470
Haute-Garonne	MIDI — Pyrénées	304	506	470
Vaucluse	Provence — Alpes — Cote D’azur	732	1 178	650
Eastern Pyrenees	Languedoc — Roussillon	568	587	470
Gar	Languedoc — Roussillon	534	n/a	470
Gironde	Aquitaine	491	1 001	400
Ille-et-Vilaine	Brittany	612	658	300
Yonne	Burgundy	n/a	715	900
Calvados	Lower Normandy	743	808	200
Cantal	Auvergne	364	543	200
The côtes-d’armor	Brittany	525	764	300
Côte d’or	Burgundy	n/a	343	900
Landes	Aquitaine	701	867	400
Manche	Lower Normandy	458	630	200
Morbihan	Brittany	624	658	300
Od	Languedoc — Roussillon	508	769	470
Seine-Maritime	Upper Normandy	546	554	900
Alpes-Maritimes	Provence — Alpes — Cote d’azur	1 027	2 088	650
Charente-Maritime	Poitou — Charentes	733	868	200
Savoie	Rhône — Alpes	1 002	1 162	200
Finistère	Brittany	615	730	300
Indre-et-Loire	Center	n/a	620	620
Jura	Franche-Comte	n/a	554	120

Home-movie star

To extract income from the resort property, you can rent it out to film companies at the time of filming. To get into directories of companies, collaborating with crews, housing must:

• include at least one room of 50 m2, the rest should be not less than 20 m2;
• located in a quiet place;
• located in a convenient set location, e.g., within a radius of 50 km from Paris, in Normandy and the Luberon;
• to be close to infrastructure such as transport hubs, restaurants and hotels.

In the province the property can rent for 1000 Euro a day for 2 000-3 000 Euro in the capital region. On average, the crew works in the home three to five days.

For example, Isabel B. gave the film his home, near Paris. The house, which has a living room of 70 m2 with open plan kitchen, brought the mistress of 1 800-2 200 euros per night.

“I had to accept the fact that the house is always going to the crowd: about 30 people, day and night, and so for 10 days,” says Isabelle.

If the shooting took place inside the house, there are days of preparation and days of actual filming. First estimated at 50 % less. If the house is a place of residence of the main character, you can count on approximately six days of filming.

If you rent, the owner must obtain prior permission from the other tenants, as are also lifted, and the common areas (staircases, door neighbors). The owners of the other flats together, they get from 200 to 1 000 euros per day.

Olives and grapes

Sometimes the owners receive income from the sale of products made or grown at home — wine, olives, cheese, and other things.

“We bought an estate in Touraine, including a vineyard of Cabernet franc area of 1 500 m2. And entered into a verbal lease contract with the winemaker for maintenance of the vineyard and harvest. He gave us a choice between 300 liters of wine, and equivalent fee, and we chose cash,” says owner Jacques-Henri V.

You can also take property at the time of celebrations — weddings, anniversaries and receptions. However, in this case it is necessary to register the house in the Prefecture institution, leading the visitors.

Yulia Kozhevnikova, Tranio.Ru

According to the materials Le Particulier

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