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Renting your apartment in Paris: procedures, lease and rental insurance

Renting out your apartment in Paris can be a great opportunity to generate regular income and enhance the value of your property, but it requires a minimum of preparation. From administrative formalities to choosing the right type of lease and rental insurance, every detail counts in securing your income and protecting your property. Discover our essential guide to successfully completing each stage of the rental process.

The basics for renting an apartment in Paris in complete safety

Renting out your apartment in Paris involves much more than simply signing a contract with a tenant. It requires rigorous organization and a sound knowledge of the regulations in force. By optimizing the management of your rental property, you can secure your income while enhancing the value and durability of your assets. Here are the key points to bear in mind:

Compliance with legal and administrative procedures An owner must follow strict procedures to avoid any disputes.
Informed choice of lease type : The choice of furnished or unfurnished rental, whether under the Alur law or the civil code, has a direct impact on your obligations and income.
Protection against rental risks Insurance plays a key role in guaranteeing the owner's peace of mind.

Administrative formalities and obligations for landlords in Paris

Before offering your apartment for rent, there are a number of administrative steps you need to take. Here's what you need to do:

1. Carry out mandatory diagnostics :

- Energy performance diagnosis (DPE)
- Lead exposure risk report (Crep) for homes built before 1949
- Statement of electrical installation if the installation is more than 15 years old
- State of the internal gas installation if the installation is more than 15 years old
- Risk report (natural, mining, technological, seismic, radon...), if the dwelling is in an affected area
- Noise diagnosisif the dwelling is in an affected area

Diagnostics must be carried out by a certified diagnostician before the property is rented out, ideally before the advertisement is published. The lessor is required to append these diagnostics to the rental contract when it is signed, and each time the lease is renewed.

2. Respect energy decency :

2025 : G-rated housing (over 420 kWh/m²/year) will be banned from the rental market.

2028 : Ban on F-rated properties.

2034 : E-rated homes will become indecent and will no longer be available for rent.

This applies to new leasesas well as to renewals or tacit renewals of existing leases.

3. Respect rent control :
Paris imposes strict rent controls to limit abuses. Rent must not exceed a ceiling set by the prefecture, known as the " increased reference rent" This ceiling varies according to location, surface area, number of rooms, type of rental (furnished or unfurnished) and the building's date of construction. Rent supplements are possible for exceptional services (e.g. Eiffel Tower view, terrace, garden, air conditioning, sauna), but must be justified. Check the official grids to ensure that your rent complies with these rules, or risk penalties such as a reduction or fine.

4. Drafting a compliant lease :
The lease must be clear and comply with the law. It must include essential information such as the duration of the lease, the amount of the security deposit, and the responsibilities of each party (landlord and tenant). However, certain clauses are prohibited. For example:

Financial penalties Penalties: Landlords cannot require tenants to pay penalties if they fail to comply with the lease or condominium by-laws.
Reminder or receipt fees Late payment reminder fees or fees for providing rent receipts are prohibited.
Mandatory direct debit The tenant has the right to choose the method of payment. Direct debit cannot be imposed.
Prohibition on receiving guests A clause forbidding the tenant to receive guests is illegal, as it violates his or her personal freedom.

Choosing the type of lease: furnished or unfurnished?

The type of lease you choose will have a direct impact on your rental management and income. Here are the key differences between furnished and unfurnished rentals.

Furnished rental

Positives:
- Rents are generally higher. The rent for a furnished apartment is generally
  10% to 20% higher than unfurnished apartments.
- Tax benefits under the LMNP (Loueur Meublé Non Professionnel) scheme.
- Shorter lease terms (1 year renewable or 9 months for students).
Points to consider :
- Mandatory furnishings :
In the bedrooms:
- Bedding with comforter or blanket
- Shutters or curtains to darken the room
In the kitchen :
- Baking trays
- Oven or microwave
- Refrigerator with freezer compartment (-6°C minimum)
- Sufficient crockery and utensils for eating and preparing meals
In main rooms :
- Table and chair
- Storage shelves
- Luminaires
For maintenance :
- Suitable equipment (vacuum cleaner for carpets, broom and mop for tiles, etc.).
- Higher turnover, implying periods of rental vacancy.

Unfurnished rental

Positives:
- 3-year renewable lease, offering rental stability.
- Easier to manage, as no furniture has to be provided or maintained.
Points to consider :
- Rents are often lower.
- Less advantageous tax treatment than furnished rentals.
- The owner must give 6 months' notice before repossessing the property, subject to a legal reason (repossession to live in, repossession to sell, or legitimate and serious reason).

Tip: If you're looking to maximize your income, furnished rental is a good option, as it offers 10% to 20% higher rents thanks to ready-to-live-in accommodation, but involves more responsibilities, such as maintenance of furniture and appliances, and more frequent rental turnover. On the other hand, if you're looking for simpler management and long-term stability, opt for unfurnished accommodation: 3-year renewable leases attract tenants who stay longer and don't need to provide or maintain furniture.

Rental insurance and guarantees to protect against risks

Renting out an apartment always involves risks, such as unpaid rent or damage to the property. Here are the essential insurances and guarantees to protect your investment:

1. Garantie Loyers Impayés (GLI) :

The unpaid rent guarantee (GLI) covers rent not paid by the tenant, as well as legal costs in the event of disputes.

2. Non-occupant homeowner's insurance (PNO) :

Covers losses that may occur in an unoccupied dwelling.

3. Security deposit :

Although it is not an insurance policy, it is a first security in case of damage or non-payment. The security deposit is 2 months' rent excluding charges for a furnished apartment and 1 month's rent excluding charges for an unfurnished apartment.

France Ermitage: your partner for successful rental management in Paris

France Ermitage supports owners in the day-to-day management of their rental property. As experts in Parisian real estate, our team offers you :

Complete administrative management including drawing up contracts, inventory of fixtures and fittings, and rent collection.
Personalized support Advice on lease selection and tax optimization.
Assistance in the event of litigation Management of unpaid invoices and legal intervention if necessary.

Entrusting your property to France Ermitage guarantees a secure rental and optimizes your profitability.