Buy to Let in France

What is a buy to let in France?

The buy to let scheme in France is where a property is bought and then leased to a property management company. The property management company then finds a tenant, maintains the property. In short looks after the purchaser’s interests and makes sure the property is occupied by a paying lodger.

Unlike with a leaseback, a buy to let property is not let to holiday makers and so ‘downtime’ is limited. Other advantages are that there is no furniture to buy, the property is let unfurnished and the terms, when compared to a leaseback, are more flexible. For example it is possible to break the contract with the management company at anytime.

How long is the lease period?
Normally there is a three year lease period. During this time, as with any property you will not have access to the residence for personal use.

What is the rate of return?
The average gross return is between 4-5% before costs on any extra guarantees. This of course can very from region to region.

When can the property be sold?
As with all property, a buy to let can be sold at any time. If there is a lodger, the chances are that full market value for the property will not be achieved.