Friday, February 6, 2015

French short-term furnished lets

I have just completed a piece for French Property News to appear in the April issue about the very special market for short-term furnished lets, normally up to 12 months. They are an interesting and lucrative way to make money by buying, converting and letting small properties - suitable for a single person or a couple - normally located in city centres, close to where people work or are attending university.

The secrets of success include choosing the right location - these are not holiday lettings - and the right kind of property, which can be in an area you might not choose to live yourself. Being close to public transport and basic amenities  - shops, bars, caf├ęs, sports or open space - are basic requirements, as well as being in a city where people are likely to need a short-term place to live.

The space needs to be fully furnished and equipped, but need not be luxurious provided it is modern and efficient. Wood floors, natural materials, an efficient kitchenette, washing machine, sufficient but not too much storage, and a comfortable bed are among the basic requirements.

To market your space and find potential occupiers, you can contact university accommodation officers, human ressource managers of local firms in the process of recrutinng or transfering personnel from outside the area, as well as local authorities who have an office devoted to promoting the city and attracting new businesses to the area.

Experienced investors in this sector report an above-average rate of return (around 8%) which can be achieved and fewer problems, such as damage or non-payers, that are sometimes associated with some longer term rentals.