The all-in budget for a French rental investment: acquisition costs, works, recurring costs and reserves
Published · Updated · 6 min read
The items to include beyond the purchase price for a French rental investment, and how to estimate them prudently.
Acquisition costs
On top of notaire fees and transfer duties, to be estimated for each property, add where relevant agency fees if not included in the price, loan arrangement and guarantee fees, and any additional surveys.
Works and furnishing
Have works quoted by professionals rather than estimated per square metre, and add a contingency. For furnished lets, furniture and equipment are part of the initial investment.
Recurring costs
Non-recoverable service charges, property tax, landlord insurance, management fees, routine maintenance and equipment replacement all reduce net income every year.
Ask the seller for actual amounts and check them against the co-ownership documents.
Reserves
A cash reserve absorbs vacancy, arrears or unexpected costs without stress. Its size depends on the property and your situation, but it should be planned before buying, not after.
General information only. It is not financial, legal or tax advice; have your situation reviewed by regulated professionals.