Letting and Renting

I. Residential rental / letting

Location / Mise en location à usage principal ou résidentiel
The rent depends on the size, the type, and the location of the property. There are three main types of
rentals:

• rental leases for unfurnished lets (locations non-meublées)

• rental leases for furnished lets (locations meublées)
• professional rental leases (locations de locaux professionnels)

Leases are usually fixed for:

• three years for unfurnished accommodation,
• one year for furnished accommodation used as main residence.

If there is no notice from either the landlord or the tenant, the lease is tacitly renewed for the same length
of time.

A. Drafting the tenancy agreement / lease agreement / rental agreement:

A tenancy agreement is signed by both the landlord and the tenant(s) and it specifies:
• the contact details of the landlord and the tenant(s),
• the details of the property: location, type of property (house or an apartment in a co-owned
building), fittings for private use of the tenant (garden, private terrasse among others), surface area,
number of rooms, heating system (individual or community heating), TV and internet connection,
• if the property is furnished or unfurnished,
• the starting date of the rental and the duration,
• the terms and conditions of the tenant’s notice
• the financial terms:
o amount of the rent,
o charges which can include and include the maintenance of the property, such as cleaning of
the entrance hall, the central heating, the lift, the mowing of the grass among others.
o conditions of rent review (usually reviewed annually based on the rent reference),
o amount of the security or damage deposit,
o amount of the previous tenant’s rent if the property was previously let to a tenant.
• enclosures:
o information sheet detailing the obligations of the landlord and the tenant,
o the building rules and regulations in case of a property in a co-owned building,
o the surveys (lead, energy performance, natural and industrial risks, gas and electrical installations)
o the inventory of fixtures (complete list of fittings for furnished properties) which has to be
established and signed by both the landlord and the tenant. This document records the condition
of the property when moving in and will be used for possible repairs when moving out.

Tenants:
• must provide a three-month proof of salary.
• will have to pay a damage or security deposit (dépôt de garantie / caution) to protect him against
any repairs to be done in case of any damage caused. The amount is equivalent to one month rent
(excluding charges) is refunded within one month after the tenant returns the keys.
• find a third party to stand security for them. They are usually called the guarantor. This guarantee is
to cover any money owned by tenants if the latter are unable to meet their obligations.
• will be required to have an insurance for their rented accommodation.

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 B. The different steps of renting:

• The tenant:
o The tenant must produce a complete rental file: ID, employment contract, last three pay slips,
last three rent receipts (quittances de loyer).
o If the tenant has a guarantor, the latter will have to produce similar documents.
o Then, the real estate agent will select properties the that match the tenant's wishes and budget.
o The future tenant will visit some properties and once they have made up their mind, the agent
will send them their file to the landlord.
o If the file is accepted by the landlord, the lease agreement can be signed.
o When signing the lease agreement, the tenant will have to pay the first month, the security
deposit, administrative costs and agency fees.
o The tenant will also have to sign up for a home insurance. Besides, a maintenance contract is
required for the boiler if it is individual.

• The landlord:
o The real estate agent can help the landlord determine the amount of the rent, depending on
the surface of the property, the number of rooms, the location or neighborhood, the services of
the co-ownership.
o The landlord can either let the property for three years if it is unfurnished or one year if it is furnished.
o For students, a nine-month lease for a furnished property is possible but not renewable.
o The real estate agent can help the landlord select the right tenant by collecting the tenants’
documents, checking that the tenant earns at least three times the rent and drafting the lease
agreement.

C. Terms and conditions of the landlord and the tenant’s notices:

• The landlord’s notice:

At the end of the lease, the landlord may reclaim his property, if it is for personal use or to be sold.

Before the end of the lease, the landlord should send an advance notice by registered mail with
acknowledgement of receipt.

The registered mail must be sent:

o six months before the end of the lease for unfurnished properties,
o three months for furnished properties.

Every month, the landlord gives a receipt to the tenant after the rental payment.

The sitting tenant is given a two-month right of preference to purchase the property.

• The tenant’s notice:

Similarly, the tenant must send an advance notice by registered mail with acknowledgment of receipt:

o three months before the end of the lease for an unfurnished property.
The advance notice can be reduced to one month if the tenant becomes unemployed or must
be transferred by his firm.

o one month before the end of the lease for a furnished property.

Vocabulary :
Bulletin de salaire : ___________________________________ dossier : _______________________________________________
Bail : ______________________________________ contrat de bail : _______________________________________
Meublé : ______________________________________ quittance de loyer : ___________________________________
Non meublé : ______________________________________ garant : _______________________________________________
Encadrement des loyers :_____________________________ propriétaire : __________________________________________
Révision des loyers : __________________________________ locataire :_____________________________________________
Dépôt de garantie : _________________________________ louer : _________________________________________________
Etat des lieux : _______________________________________ mettre en location :____________________________________

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to rent: louer
tenancy

or “unfurnished rental”
or “furnished rental”

rental

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II. Seasonal rental / letting
Location / Mise en location à usage saisonnier

The main feature of seasonal letting is to be traditionally based on a short-term renting or letting for a
maximum and non-renewable length of 90 consecutive days.

The second main feature of seasonal letting is to allow the tenant and the landlord not to have a lease
and to organize their transaction according to their own terms.

A verbal agreement can be sufficient and although the law does not explicitly require a signed contract
most often people have one as it is in the interest of the two sides.

Therefore, some landlords would rather ask an agency to let their properties to avoid having to deal with
any possible conflict since professionals must have a written contract.

• Landlords’ obligations: the property must be furnished and salubrious, the swimming pool must be
secured, a multiple risk insurance must be signed up, lead and natural risks surveys must be provided.

• Tenants’ obligations: they must pay a deposit and the rent. In addition, they must not over occupy
the property. They must put the property back to its original condition.

It is compulsory to give a full description about the location, the fixtures (équipements, installations) the
price of the rent and the commission.

It is usually recommended to specify:

• the duration of the rent with a precise date for the beginning and the end between (this may include
a time of arrival and departure).

• a comprehensive inventory. Otherwise, the tenant is supposed to have found the place in good
condition and leave it in similar good condition.

• The amount of the damage deposit and its refund period.

The reservation will be done by returning the provided documents signed and it will be secured by an
advance payment which may not exceed a quarter of the full price. One month before, the whole rent
has to be paid.

It is very important to write down whether a down payment (acompte) is made or a damage deposit
(dépôt de garantie) is paid in case the booking is cancelled.

In case of a down payment, tenants will have to pay for the whole rent, but they can get their money
back for a deficit.

If landlords cancel, they will have to pay back twice the amount of the deposit.

In France, a difference is made between “arrhes” and “accompte”. They are both advance payments.
Yet, contrary to “arrhes” when you deposit an “accompte”, tenants are not allowed to cancel their
booking.

In case of an “accompte” deposit, tenants have the obligation to pay the whole rent whether they come
up or not.

If tenants have only deposited “arrhes”, landlords do not have the right to demand the whole rent in case
of cancellation.

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 III. Managing rentals
Gestion locative

Managing a property can be time-consuming especially for owners living abroad.

Most landlords, specially those who live abroad, resort to rental managers to avoid having to deal with
paperwork and conflicts.

Rental managers provide peace of mind to landlords as they play the role of go-between.

Their main missions are:

• Rental managers first select the tenants and make sure they are both reliable and solvent.

• They deal with paperwork: files, tenancy agreements and inventory of fixtures.

• Then, they collect the rent or deal with rent collection issues and send the receipt to the tenant.

• They review the rent if necessary.

• They deal with eviction process.

• They solve all maintenance issues, such as leak or a water damage by calling the appropriate
craftsmen (artisans): plumber, locksmith, electrician, among others. These service providers should
be competitive, trustworthy, and efficient.

• They send detailed monthly or quarterly management reports showing income, expenses, work
orders and invoices.

• They also send yearly statements of income and expenses for tax purposes.

• They are remunerated on rental income (rendements locatifs) depending on the rental manager
and whether the landlords take an insurance for unpaid rents.

Vocabulary :
Gestionnaire locatif :___________________________________ compte-rendu de gérance : ________________________________
Peace of mind:_______________________________________ contrat de bail : ____________________________________________
Recouvrement des loyers :_____________________________ bon de commande / ordre de mission : ____________________
Quittance : ___________________________________________ assurance loyers impayés : __________________________________
Entretien :_____________________________________________ compétitif : _______________________________________________
Plombier : _____________________________________________ digne de confiance :_______________________________________
Serrurier : ______________________________________________ efficace : _________________________________________________
Electricien : ___________________________________________ chronophage : ____________________________________________
Artisan : ______________________________________________ revenu locatif : ____________________________________________
Prestataire de services :________________________________ solvable :__________________________________________________
Expulsion : ____________________________________________ vivre à l’étranger : __________________________________________
Fuite : _________________________________________________ facture : ____________________________________________________
Dégât des eaux:_______________________________________ intermédiaire : ______________________________________________

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IV. Oral trainings

• Un client britannique souhaite mettre en location la maison dont il vient d’hériter, en bord
de mer, à Deauville. En tant qu’agent immobilier, vous lui conseillez une location
saisonnière, en lui explicant les règles de la location saisonnière en France, à la fois pour le
locataire comme pour le propriétaire.

• Une expatriée américaine souhaite se renseigner sur une location longue durée, à usage
résidentiel. En tant qu’agent immobilier, vous lui expliquez les règles de location à usage
principal ou résidentiel en France, à la fois pour le locataire comme pour le propriétaire.

• Un client anglophone habitant à l’étranger souhaite mettre son chalet situé en Haute-
Savoie, en France. Vous le renseignez sur les règles de la location saisonnière, et
notamment sur les obligations du locataire comme du propriétaire. Il souhaiterait
également avoir recours à vos services de gestion locative. Vous le renseignez.