top of page

"Dry Goods" Paris Housing Rental Investment Strategy (3): What are the costs of renting a house?

​In the first and second series, we talked about whether to choose to rent a house with furniture, and how to bypass the rent restrictions in Paris. Furnished rentals have higher rental yields, but require an up-front investment of money and effort; Code Civil civil law leases are more flexible and can bypass Paris rent restrictions, but there are certain restrictions on the type of tenant. In this issue, we will continue to bring the cost issue that everyone is more concerned about, "The third series of the whole strategy of leasing investment - how do tenants and landlords share the costs incurred during the leasing process".


Review post: "Dry goods" rental investment strategy (1) - whether to rent with furniture , "dry goods" rental investment strategy (2) - how to bypass Paris rent restrictions

Series 3: What expenses will be incurred during the rental period?

1. Building property management fee


The management company of the whole building will make an annual budget, make payment every quarter, settle the public management property fees of this building every year, and refund more and less. Expenses generally include doorman, daily cleaning of common parts, elevators, collective heating and running water, etc.


The rental listings for sale by Red Line Real Estate (please click the link for details): Noble Haussmann Architecture Apartments, where the elites of the new society gather in Paris

Rental listings for sale by Red Line Real Estate (please click the link for details): French luxury apartments - adjacent to Peninsula Hotel, Arc de Triomphe, Louis Vuitton

2. Rental brokerage fee


In the last issue, we talked about the two leases of Bail Alur and Code Civil adopted in France. The rent restriction order (Bail Alur) is bound by Loi Alur, while the civil law lease (Code Civil) is relatively more flexible and is negotiated by the landlord and the tenant. The rental brokerage fee is also determined by the two contract types, in general, the Bail Alur lease brokerage fee is regulated by the government, and the Code Civil lease brokerage fee is more flexible. The main charging standards are as follows:


Essence summary


Code Civil is more advantageous

-  Since the rental agreement in Paris is generally more biased towards the interests of the tenant, the use of Code Civil can protect the interests of the landlord to a certain extent. For example, if the tenant does not pay the rent or does not abide by the terms of the lease, the landlord can evict the tenant according to the lease agreement;


-  Civil law leases are more flexible, allowing parties to negotiate more freely on contract terms, such as rent level, lease term, deposit amount, whether to pay rent in advance, etc.;


- But it should be noted that when the tenant is a company, the lease is directly related to the employment status of the tenant, and when the employment relationship of the tenant is terminated, the contract is directly terminated. When a tenant is an expat, the rent and deposit are paid by their company, so these tenants will be more mindful of protecting your property.

bottom of page