Private rented sector France v UK

I am not called The Property Geek for nothing, those who know me know I have an obsession with the rental industry and as a Francophile I thought I would write about how the UK and France differ when it comes to renting privately.

Both Countries rental systems can be complex with a minefield of legislation and governance, France is very pro-tenants rights and extremely animal friendly, as with everything research is key, below is a brief outline of what to expect when renting in France.

Anyone can become a landlord in the UK whether by accident or a planned business, at present there is no requirement for a landlord to be registered in anyway.

In France all professional landlords must be registered with the ‘Chambre de Commerce’ and are referred to as an LMP (loueur en meublé professionnel).

When renting in France it is important to understand there are two types of rental property, furnished and unfurnished, you may not think this poses too much of a problem, however the legal system is very different for each. Furnished has recently been given a clear legal definition and tenants of unfurnished property have more rights than those in furnished properties.

As a landlord furnished and unfurnished properties are assessed differently for tax purposes so mixed portfolios can prove to be an unwanted stress, also income from each rented furnished property must be in excess of €23,000pa.

In 2015 the law was changed in France to implement rent caps (rent-controlled area (zone tendue)) in many regions across the Country restricting how much rent can be increased by.

Another important point to raise is that by law, the landlord cannot prohibit the tenant from having pets of any kind.

Deposit

Deposits in France are required to be equal to 1 months rent, however they do not need to be protected in anyway.

When a tenant vacates their deposit must be returned to them within two months of them leaving the property if there are disputes, or one month if there are no issues. If a landlord doesn’t return the deposit after this time, the tenant can submit a complaint to the Commission Department of Conciliation (CDC).

This is in contrast to the UK where a deposit must be protect with one of the 3 approved schemes and within a set period of time, also deposits must be returned within 10 days of the tenant vacating, or in part if there is a dispute

Minimum Rental period

The minimum rental period for an unfurnished property in France is 3 years, compared to a furnished property which is 1 year, however holiday lets and some short term rentals can only be provided by furnished properties.

As we know in the UK the minimum rental period is 6 months on a standard Assured shorthold tenancy (AST) regardless of the level of furnishing.

Pre-tenancy checks

In the UK we rigorously check our tenants history from previous rental behaviour to credit history to inside leg measurement, not forgetting the Right to Rent check.

France does not have a credit history system because they do not use finance in the same way we do, for example we can chose a myriad of finance options from credit cards, loans and hire purchase, in France those option are still available but all finance payments go directly through a persons bank account and is therefore linked direct to the bank account activity, if a person misses a repayment on an item or their rent, their bank account is frozen until the issue is resolved, as I’m sure you can imaging, people rarely miss their payments.

When renting in France applicants need only provide the following documents

• An identity document: id card, passport, driver's licence, visa information, etc.
• A proof of professional activity: work contract, employer's reference, a student card; a business statement ( if tenant runs own business)
• A proof of financial support: last three months’ pay slips, whether the source of funding is salary, pension or any other benefit; previous tax returns; proof of having a student scholarship.
• References of previous renting Only if tenant has rented in France before otherwise it is not needed:

Safety Documents

In the UK the landlord has to provide the following documents to the tenant.

·         Valid Gas cert ( if gas in property)

·         Energy performance cert (EPC)

·         How to rent guide

·         Deposit protection information.

In France the landlord is still required to provide an EPC, in addition to this he must also provide a risk or safety report of the property.

Tenant insurance

By law, a landlord can request a tenant take out home insurance to cover the risks of mainly water damage, fire, explosion and in some cases, theft of contents.

If required, the tenant must provide proof of such insurance when first renting the property, and every year thereafter at the request of the landlord. The lack of insurance can be grounds for the landlord to cancel the lease (if a lease clause is provided) or buy insurance for the tenant and demand repayment of the fee. Otherwise, a tenant is free to choose the insurance company of their choice.

The tenancy agreement

Since 2015 all tenancy agreements across France have been regulated and must indicate which charges are to be paid by the landlord and which by the tenant. Typically include city taxes, utilities and, particularly for apartments, charges for the maintenance of communal areas.

Subletting

It is legal to sublet in France, provided the tenant has official written approval from the landlord and the sublease does not exceed the amount paid by the main tenant.

Tenancy renewal

In the UK if no one ends the fixed term tenancy then it is automatically renewed to form a statutory periodic which rolls on month by month.

In France this is the same however the automatic renewal forms another 1 year fixed contract, not a rolling monthly one.

Giving notice

For tenants in furnished properties they are required to give 1 months notice.

For tenants in unfurnished properties they are required to give 3 months notice ( one month if renting in Paris)

Tenants can give notice at any time, and the notice period starts from the day the landlord receives your official letter.

Notice must be given in writing either by registered letter (recommender), delivered by a bailiff (hussier), or delivered by hand with acknowledgement of receipt and annotated. Emails and verbal notices are not valid.

Landlords must give six months’ notice before the end of the rental period of an unfurnished property, or three months’ notice for a furnished property.

There is no provision of a no fault notice in France, so no Section 21, a landlord must have reason for ending the tenancy, such as rent arrears or breach of tenancy

Property maintenance & access to the property

Once the keys have been handed over, the landlord does not have the right to enter the property without the tenant’s consent, and may be charged with trespass or harassment for doing so. The landlord does not have the right to check up on the tenant, for example, annual property inspections, unless this has been agreed in the rental contract. They do have the right to enter the property to undertake essential works and routine maintenance (although not improvements to the property), and the tenant must allow this.

In France that tenants have responsibilities to carry out minor repairs and routine maintenance; these can include garden maintenance, fixing basic interior damage, attending to minor plumbing, gas and electrical issues, cleaning chimneys and more. Major repairs, however, are the responsibility of the owner.

Many aspects of renting in France whether as a tenant or a landlord seem to be simpler than here in the UK, but wherever you chose to live or own your property knowledge is key.