Renting your French property

Introduction - The First Decision

Once the keys to your new build property in the French Alps or French Riviera are in your hands, the question shifts from acquisition to activation. How you use the property and how you generate a return from it depends on a single foundational decision that every owner should make consciously before signing any letting arrangement.

Are you buying purely as an investment, with the objective of getting the best from rental income and building a property asset? Or are you buying for a combination of personal use and rental income, using the property for family holidays while letting it generate revenue during the weeks it would otherwise sit empty? The answer to this question determines which rental model is appropriate, what obligations you take on, and how the property should be set up from the outset.

This guide sets out every option available to you, from the most informal arrangement to a fully structured fiscal operation, so that you can make an informed choice that reflects your lifestyle, your investment objectives, and your tolerance for involvement in the day to day management of the property.

The Spectrum of Rental Models

The French property rental market offers owners a wide range of letting structures. They can be grouped into four broad categories:

These models are not always mutually exclusive. Many owners in the Alps and on the Riviera operate a hybrid approach using their property for 4–6 weeks personally and letting it through a local agent or OTA platforms for the remainder of the year. What matters is that the structure you choose is properly documented, fiscally declared, and supported by the right insurance, furnishing, and contractual framework from the start.

Occasional Letting - Friends, Family & Informal Arrangements

The most informal letting arrangement is lending or renting your property to friends or family on an occasional basis. While this feels low stakes, there are legal and fiscal considerations that owners should understand.

Lending the property free of charge

Providing the property at no cost (known as a prêt à usage or commodat) is legally straightforward. No rental income is generated, and no fiscal declaration is required in respect of the letting itself. However, you remain fully responsible for insurance cover, and your home insurer should be notified that third parties will be occupying the property.

Charging friends or family

Once you charge for occupancy even informally, you are generating rental income that must be declared to the French tax authority (DGFIP). Income from furnished letting is classified under Bénéfices Industriels et Commerciaux (BIC) and falls within the LMNP framework if you are not a professional landlord. Below an annual threshold of €77,700 gross rental income, the simplified Micro-BIC regime applies, allowing a flat 50% deduction (71% for qualifying tourist accommodation) against taxable income. Above this threshold, the régime réel is mandatory.

Short-Term Holiday Letting - Self-Managed via OTA Platforms

The growth of online travel agencies (OTAs) Airbnb, Booking.com, Vrbo, Expedia, Abritel, and others has made self-managed holiday letting accessible to individual property owners. For owners who want maximum control and the potential for higher rental yields, this is an attractive model, particularly for high-demand Alpine and Riviera locations.

How the platforms work

Each OTA provides a listing platform, a booking and payment system, and a degree of liability protection. You set your own nightly rates, availability calendar, and house rules. The platforms charge a commission on each booking (typically 3% from the host on Airbnb, 15% on Booking.com, though structures vary) and handle guest payments. You receive the net amount after commission, minus any applicable platform taxes.

Key advantages

• Full control over pricing, availability, and guest selection criteria

• Ability to block personal use weeks without restriction

• Potential to outperform fixed-rent or revenue-share models in peak periods

• No long-term management contract commitment

Obligations and practicalities

• Taxe de séjour: in most French Alpine and Riviera communes, owners letting to short-term tourists must collect and remit the taxe de séjour (tourist tax) per guest per night. Many OTAs collect and remit this automatically, but owners should confirm the position for their specific commune and platform.

  
  

• Déclaration en mairie: properties let as tourist accommodation in France must be registered with the local mairie (town hall). In classified tourist communes (which covers virtually all Alpine resorts and Riviera towns), a formal declaration is mandatory.

  
  

• Fiscal declaration: short-term OTA income is declared as BIC under the LMNP framework. Airbnb and other platforms are now legally required to report annual letting income directly to the DGFIP, so undeclared income is increasingly difficult to conceal.

  
  

• Guest changeover & cleaning: self-managed letting requires a reliable local contact or cleaning company for changeovers between guests. This is one of the primary practical challenges for non-resident owners.

  
  

• Key management: a local key-holder or smart lock system is essential for guest access when you are not present.

For owners who would prefer not to manage the OTA process themselves, Halle International can recommend specialist short-term letting companies who handle every aspect of the OTA operation on your behalf, from listing creation, pricing strategy, and guest communication through to changeovers and property care. This gives you the flexibility and yield potential of the OTA model without any direct involvement in the day-to-day management.

Letting Through a Local Agent

For owners who prefer a hands-off approach without the long-term commitment of a leaseback structure, engaging a local letting and management agent is the most practical solution. A professional agent handles everything from marketing and bookings through to guest services, cleaning, and minor maintenance.

What a letting agent typically provides

• Listing across multiple OTA platforms and the agent’s own direct booking channels

• Dynamic pricing management to maximise occupancy and nightly rates

• Guest communication, check-in, and check-out management

• Professional cleaning and linen changeovers

• Minor maintenance coordination and regular property inspections

• Monthly income statements and annual fiscal documentation

Typical commission structure

Agent commission on short-term holiday letting typically ranges from 20% to 35% of gross rental income, depending on the level of service provided, the resort, and the volume of properties the agency manages. Some agents charge a fixed management fee in addition to or instead of a percentage commission. Always clarify what is and is not included before signing.

Types of Management Contract

When letting through an agent in France, you will be asked to sign a mandat de gestion. Understanding the type of mandat matters:

Mandats de gestion are typically for a minimum term of one year, with a notice period of 1–3 months. Read the termination clauses carefully, in particular the conditions under which you can exit the contract if performance is poor.

What to check in your rental management contract

• Exact scope of services included vs charged as extras (deep cleaning, maintenance callouts, linen replacement)

• Commission rate and whether it is applied to gross rental income or net of platform fees

• Minimum income guarantees, if any (rare but occasionally offered by larger agents)

• Liability for unoccupied periods and void costs

• Insurance obligations and whether the agent carries professional liability cover

• Notice period and conditions for termination

Long-Term Letting

Long-term letting is less common for luxury Alpine chalets and Riviera properties, but it is a genuine option for owners who prioritise stable, year-round income over seasonal yield peaks. It is particularly relevant for apartments in urban Riviera locations such as Nice, Cannes, or Antibes where there is a strong local residential rental market.

Unfurnished Long Term Let (Bail d’Habitation) Occupation Lease

An unfurnished residential tenancy in France is governed by the law loi du 6 juillet 1989 and provides significant tenant protections. Key terms:

• Minimum lease duration: 3 years (or 6 years if the landlord is a legal entity such as an SCI).

• Notice to terminate: the landlord may only terminate at the end of the lease term, with 6 months’ prior written notice, and only on specific grounds (personal occupation, sale, or serious tenant breach).

• Rent reviews: limited to the annual IRL (Indice de Référence des Loyers) Rent Reference index.

• Rental income taxation: income is taxed as revenus fonciers (property income) under the standard income tax rules, not as BIC.

Unfurnished lettings are generally not appropriate for furnished luxury Alpine or Riviera new builds, as the tenant has the right to provide their own furniture and the landlord is required to deliver the property in a habitable but unfurnished state. For a fully specified new build, a furnished tenancy is almost always more appropriate.

Furnished Long Term Let (Bail Meublé) Furnished Lease

A furnished residential tenancy is governed by the law loi Alur and the specific provisions for locations meublées. (Furnished Lettings)

Key terms:

• Minimum lease duration: 1 year (reduced to 9 months for student tenants under a bail étudiant - Student Lease).

• Notice to terminate: Owners may terminate with 3 months’ notice at lease end, on the same grounds as an unfurnished tenancy.

• Bail mobilité: a short-term furnished tenancy of 1–10 months is available for tenants in specific professional or training situations. No renewal right; useful for seasonal workers or seconded professionals.

• Fiscal treatment: rental income is classified as BIC under the LMNP regime. Depending on annual income, either Micro-BIC or régime réel applies.

Deposit and Tenant Guarantees

• Furnished tenancies: maximum deposit of 2 months’ rent (hors charges)

• Unfurnished tenancies: maximum deposit of 1 month’s rent

• Many landlords additionally require a personal guarantor (caution solidaire) or subscribe to a Garantie des Loyers Impayés (GLI) Rental insurance policy

The Structured VAT Reclaim Operation

The most fiscally efficient rental structure for new build property in France is the para-hôtellerie model a furnished letting operation that qualifies for VAT recovery by offering at least three of the four hotel-equivalent services prescribed by the French tax code. This is the structure that underpins most leaseback residences but can, in principle, be operated independently by an owner.

The Four Qualifying Services

To qualify for VAT registration and VAT recovery under para-hôtellerie, the owner (or their agent) must provide at least three of the following four services to guests:

In practice, services 2, 3, and 4 are the most commonly offered combination for Alpine and Riviera properties. Service 1 (breakfast) is less common outside formal tourist residences.

VAT Recovery and Obligations

• TVA recovery: the 20% VAT paid on the new-build purchase price is recoverable if the property enters a qualifying letting operation. For a property purchased at €600,000, this represents a recovery of €100,000.

• TVA registration: you must register for VAT with the DGFIP and file quarterly or annual VAT returns (CA3 or CA12 form).

• TVA on rental income: rental income is subject to TVA at 10% (the reduced rate for hotel-type accommodation), which you charge to guests and remit to the DGFIP.

• 20-year commitment: the VAT recovery must be maintained for 20 years. Early exit triggers a pro-rata recapture at 1/20th per year remaining.

• Accounting: full bookkeeping records are required. An accountant (expert-comptable) familiar with LMNP and para-hôtellerie is strongly recommended.

LMNP Régime Réel - The Tax Efficiency Engine

Under the régime réel, all operating costs are deductible against your rental income:

• Depreciation (amortissement) of the property structure, fit-out, and furniture typically the largest deduction

• Mortgage or loan interest (where applicable)

• Agent or management fees

• Insurance premiums

• Maintenance, repair, and running costs

• Accounting and legal fees

• Copropriété service charges

The combination of amortissement (depreciation) and operating deductions means that many LMNP investors report little or no taxable income for the first few years of ownership, despite receiving meaningful rental income. Any deficit generated cannot be offset against other income but is carried forward against future LMNP rental income.

Furnishing Your Property

The standard to which your property is furnished has a direct and demonstrable impact on the nightly or weekly rates you can command, your property’s reviews and repeat booking rate, and the type of tenant or guest it attracts. For new build property in the luxury segment which is the exclusive focus of Halle International’s portfolio a high-quality, coherent interior specification is not optional; it is a commercial necessity.

Why Furnishing Must Be Budgeted at Purchase Stage

One of the most common mistakes made by new build buyers is treating the furnishing budget as a separate and deferrable decision. In reality,

furnishing costs should be modelled at the point of purchase alongside the property price, notaire fees, and any fitout costs. For a 2-bedroom Alpine apartment of 60–80m², a high-quality furnished specification typically costs between €25,000 and €60,000. For larger chalets or Riviera villas, budgets of €80,000–€200,000+ are not unusual.

Deferring the furnishing decision means the property cannot be let immediately upon delivery, forfeiting the first rental season’s income. It also risks rushed, incoherent purchasing decisions that undermine the property’s visual appeal and guest reviews.

Furnishing Under LMNP - A Fiscal Benefit

Under the LMNP régime réel, furniture and fittings are treated as a depreciable asset. Items with a purchase price above €500 are depreciated over their useful life (typically 5–10 years for furniture, 3–5 years for electronic equipment). This creates an ongoing annual tax deduction that reduces often eliminates your taxable LMNP income.

Halle International Furnishing Service

Halle International works with a carefully selected network of leading interior suppliers and furnishing specialists who understand the specific demands of the Alpine and Riviera rental market. Our furnishing service covers:

• Full interior specification and mood board, tailored to the property’s architecture and target guest profile

• Furniture procurement, delivery coordination, and installation

• Kitchen, bedroom, and bathroom accessory packages

• Soft furnishings, artwork, and decorative accessories

• Appliance specification and installation coordination

• Inventory documentation for LMNP accounting purposes

Working through Halle International’s furnishing partners gives you access to trade pricing, consolidated delivery logistics (particularly valuable for Alpine properties with access constraints), and a single point of coordination between the developer’s delivery schedule and the furnishing installation programme.

Furnishing Budget Guide - Indicative ranges

These are indicative figures for a fully furnished, guest-ready specification at the luxury end of the market:

• Studio / 1-bed apartment (30–45m²):  €15,000 – €30,000

• 2-bed apartment (50–70m²):  €25,000 – €55,000

• 3-bed apartment (75–100m²):  €45,000 – €90,000

• Chalet or villa (5+ bedrooms):  €90,000 – €200,000+

These figures include furniture, kitchen equipment, linen packs, soft furnishings, and decorative accessories. Bespoke joinery, smart home systems, and artwork are additional.

Halle International - Your Rental Strategy Partner

Whether you are purchasing a ski apartment in the Alps or a villa on the Riviera, Halle International can help you design the right rental strategy from day one. We introduce you to vetted local letting agents, specialist French tax advisers, LMNP accountants, bilingual notaires, and furnishing partners all with direct experience in the luxury new build market.

Our advisory service is complimentary for buyers

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