The rent of a furnished housing can be freely determined by the landlord as long as he takes into account the property’s location and the furniture quality. The ALUR law provides for rent regulation for furnished rentals when it is the tenant’s main residence but the implementation decrees haven’t been issued yet. If a landlord wants to rent out its property he will have to determine the rent accordingly with different criteria…
The location: get to know the renting prices of similar furnished housings in the neighbourhood
The location of the accommodation is the first element to take into account to determine the rent.
It is essential to observe in the neighborhood the usual rents applicable for similar properties, that is accommodations with the same number of rooms, knowing that the lay out and functionality are more important in furnished rentals than the number of square meters. You should be aware that the tenant often changes. You must therefore ensure , with the help specialists in furnished rentals as Lodgis Agency, that the estimated rent will allow an effective demand for the apartment not to be empty for too long to avoid an impact on your accommodation’s profitability.
A higher rent thanks to quality equipments and furniture
The second key element for the determination of the rent in furnished rentals is the quality of the equipments and furniture. A furnished apartment with a modern and homogenous furniture will be rented at 15% on average more than the same flat poorly equipped.
Most of the time, tenants select their future housing according to the pictures they see on the internet.To rent a furnished apartment easily, you have to find the right coordination between the neighborhood, the standard of quality and the quality of the apartment’s furniture. It is also important to make sure that the kitchen and the bathroom are in a good condition as the tenants tend to be very sensitive to the characteristics of those rooms.
ALUR law : what impact on the rent of furnished accommodations ?
The law n° 2014-366 of the 24th of March 2014 for the Access to Housing and Renovated Urbanism (stated in French as ALUR) provided to establish a legal frame for the rents of furnished accommodations rented as main residences by the tenant in municipalities of more than 50 000 inhabitants.
The Prefect will have to establish a reference rent for furnished rentals by grossing up those determined for empty rental and the law specifically provided that this grossing up would be determined on the basis of the gaps recorded between the rents of the empty and furnished rentals by the Rental Observatory .
In Paris, where the measure should be implemented on an experimental basis, the Rental Observatory for the Parisian Agglomeration (OLAP) does not have references enough for furnished rentals , preventing the rapid and effective application of the decree for the moment.
While waiting for potential decrees, the rents of furnished accommodations are still freely determined between the landlord and the tenant while taking into account the prices of the market, the location and the quality of the furniture.