Lodgis, the real estate agency that specialises in furnished rentals in Paris, has carried out a survey with 6,500 landlords to find out they are and whether the new rules enforced by the loi ALUR (namely the rental caps) have affected their amount of business as private landlords (LMNP). Here are the results of the study…
1. 37% of those asked say that the new rules enforced by the loi Alur, including the rental caps, have not had any affect on their amount of business as private landlords (LMNP). On the other hand, 52% say that they have had to adapt their strategy, either by being more rigorous in the selection of tenants or by imposing a rent supplement (based on extra equipment or special features in a property), or by maintaining their rental properties less. One might question whether these measures, which were designed to make housing more accessible and to improve tenant/landlord relations, have actually been effective.
2. Contrary to popular opinion, the tax incentives aren’t the only reason landlords are switching to furnished rentals. In fact, the main reaons for doing so are the opportunity to earn extra income (84%) and the legal flexibility of renting a furnished property (88% prefer the contract lengths and the shorter terms of required notice). Only after this do the preferential tax arrangements feature as a reason (70%).
3. Finally, this study has given us more information about the different profiles of private landlords in Paris (LMNP). They are predominantly French (89%), nearly half live in the Île-de-France region (48%), and the majority rent out furnished apartments that have a small surface area: studios (46%) and 2-room apartments (40%). Rentals are commonly for a period of 6 months or longer (67%), and 87% of landlords describe having good, very good or excellent relations with their tenants.
If you would like to find out about this study in more detail, I would recommend reading Lodgis’ recent presse release on this subject: A study with furnished rental landlords in Paris