LUXURY PROPERTY – RENTING

If you are intending to rent your luxury property there are some notable differences in the law in France that you should be aware of.

The differences are between furnished or unfurnished property.  Firstly, if you rent your luxury property furnished you must offer a lease for at least a year and it is automatically renewed at the end of the agreed term for a further year.

Renting an unfurnished luxury property you must provide a lease for a minimum of 6 years if you own the property through a company or for 3 years if the property is in your name.  The tenant has an automatic right to renewal.

There are strict rules for terminating a lease on your luxury property. If the tenant wants to leave the property, they have to give 3 months notice for an unfurnished property and 1 months notice for a furnished one. 

If you wish to terminate a lease at the end of its term you must give notice to the tenant of either 6 months for an unfurnished property or 3 months for a furnished property.

As a landlord you have to give a valid reason for refusing a renewal on a lease.  Reasons include; you wish to sell the accommodation, ‘serious and legitimate reasons’ e.g. persistent non-payment of rent, or you want to take the property back for personal use. The latter does not apply if the landlord is a company.

If you give notice to sell your luxury property, the tenant has a right to buy the property at the sale price you accept from a third party, ie tenants have first refusal.

Finally, you have to be aware that you cannot negotiate regular rent increases as in the UK.  You can only increase the rent annually, in accordance with the ‘IRL’, an Index published by the National Institute for Statistics and Economic Affairs.

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