Wednesday, April 8, 2015

Average prices for long term rental

Many French people opt to live in rented accommodation, either through choice or necessity, and recent research by INSEE (a government think-tank) shows that in my local town Perpignan some 55% of households comprise renters. Perpignan in many ways is a typical medium size French town, with an urban population of 115 000 and surrounding suburbs and close-by villages adding a further 100 000 residents. It has its own university with ten per cent students from overseas, and as well as being the departmental capital the town survives on tourism and retailing, much of it on the edge of the centre. All these factors make it a useful example to study in terms of 'average' rental prices, bearing in mind the usual cautions about no two properties being precisely the same.

The INSEE findings can be broken down as follows and covers all of the 55% rented households. Of these
- 31% live in single bedrooms up to 15m², paying a monthly rental avraging 311 euros ( a reflection of the highish student population)
Or - a studio up to 24m² at 387 euros per month; or a type T1* apartment up to 30m² at 399 euros per month

- 65% live in a T2 (up to 45m²), or a T3 (up to 65m²) at 595 euros per month, of a T4 (up to 80m²) at 678 euros per month

- just 4% of renters live in houses of more than 100m², costing an average 1,021 euros per month.

The report also notes that some 340 rented properties changed hands during 2014, indicating that there is a wide choice of rented accommodation from which to choose and renters will quickly move to somewhere cheaper or more attactive.

If you own a property you are considering letting long-term unfurnished, and live in a similar sort of town, the INSEE figures provide a working basis by which to arrive at a market rent. Bearing in mind that potential renters have access to similar information and may use it as a guide when searching, you may have to offer something a bit special if you charge a higher-than-average rental.

* Type T1, T2, T2 etc (sometimes expressed as F1 etc) basically means 1 room plus kitchen and bath, 2 rooms plus kitchen and bath, and so on. Bear in mind that many 'kitchens' are now incorporated into the main living room (sometimes described as a 'cuisine américaine'). The additional room(s) are normally bedrooms, if of a sufficient size.