Second Home Lease

The rental of a Second Home offers contractual flexibility distinct from that of a main residence. Whether you are an owner who wants to rent your Vacation home Or tenant considering a temporary rental, it is essential to understand the specificities of Second Home Lease. This guide details the legal aspects, the types of leases, the obligations of the parties and the associated administrative procedures.

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What is a second home?

One Second Home Is a home occupied less than 8 months a year, used mainly for leisure, vacation or temporary stays. Unlike the main residence, it is not the permanent home of the occupant. It Can Be A Vacation home, a city apartment or any other type of furnished accommodation intended for occasional use.

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The Legal Framework for Second Home Lease

The Second Home Lease Is governed by the provisions of Articles 1708 and following of the Civil Code, offering greater contractual freedom compared to the main residence lease. The parties can thus Freely fix The duration of the lease, the amount of rent and the conditions of termination, subject to compliance with general contract law obligations.

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The Types of Leases for a Second Home

1. Seasonal rental

La Seasonal rental Concerns short-term rentals, generally for temporary customers. This type of lease is often used for Vacation Homes or apartments located in tourist areas.

Characteristics:

• Duration : Generally less than 90 days.
• Usage : The tenant does not establish his main residence there.
• Formalities : A prior declaration at the town hall may be required, in particular for Furnished Tourist Accommodation.

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2. Medium or Long Term Rental

For rentals that exceed the seasonal period, a Civil Lease Can be established. This type of contract offers flexibility in terms of duration and conditions, adapted to the specific needs of the parties.

Characteristics:

• Duration : Freely fixed by the parties.
• Usage : The tenant can use the accommodation as a pied-a-terre or for business stays.
• Formalities : The contract must specify that it is a Lease as a Second Home and include a Description of the accommodation As well as financial arrangements.

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Obligations of the Lessor and the Tenant

Obligations of the Lessor

• Provision of Housing : The accommodation must be in good condition for use and repair, in accordance with the description provided.
• Interview : Ensure the necessary repairs other than rental.
• Insurances : Take out non-owned owner insurance (PNO) to cover risks not attributable to the tenant.

Tenant Obligation

• Rent Payment : Respect the agreed deadlines and modalities.
• Peaceful Use of Housing : Use the accommodation in accordance with its destination, without causing any nuisance.
• Routine maintenance : Take care of minor repairs and the routine maintenance of the home.
• Insurances : Take out multi-risk home insurance to cover damage for which he may be responsible.

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Termination of the Secondary Residence Lease

Termination conditions must be specified in the contract. Given contractual freedom, the parties may agree on the following terms:

• At the end of the lease : The contract ends on the scheduled date without any particular formality.
• Early Cancellation : The conditions (notice, legitimate reasons) must be defined in the lease.
• Resolutory clause : Provides for automatic termination in the event of a serious breach of obligations (non-payment of rent, misuse of housing, etc.).

Administrative and regulatory procedures

• Request for change of use : Some municipalities require a Request for change of use To Transform a Home Into Second Home Rental, especially in areas where the supply of housing is limited.
• Registration at the Town Hall : In some cities, especially those with more than 200,000 inhabitants, the recording of the Lease as a Second Home May be required for rental market control issues.

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Read also: Renting out your second home.

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Bare or Furnished Rental: What Type of Lease to Choose?

The choice between a Naked Location gold Furnished For a Second Home Depends on both the goals of the owner and the needs of the tenant. It is not only a question of comfort, but also of taxation, flexibility and profitability. Each of the two formulas has its advantages and constraints that should be analyzed before signing a lease.

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📦 Naked Rental Type

La Naked Location (or empty) is generally preferred for medium to long term stays. It implies that the unit is rented without furniture, which is well suited for tenants who want to move into the unit regularly and bring their own furniture.

This type of lease also allows the owner to benefit from greater rental stability. Indeed, tenants who choose a bare rental are often looking for a Sustainable foot-a-terre Or of a Secondary Housing For frequent but spaced stays. For the lessor, this allows Limit Rental Rotation, refurbishment costs and vacation periods between two rentals.

Advantages:

• Increased rental stability, ideal for securing income.
• Less maintenance to be expected, the equipment belonging to the tenant.
• Current expenses are often lower (no household appliances or furniture to replace).

Disadvantages:

• Less flexibility to take over housing quickly.
• Necessity for the tenant of Mobilize a furniture budget, which can slow down the rental process.
• Less attractive for short-term tenants or renters on the move.

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🛋️ Furnished Housing: Advantages and Constraints

La Furnished Rental, on the other hand, is for tenants looking for ready-to-live accommodation, equipped with the minimum legal furniture (bed, table, chairs, kitchen equipment, storage, etc.). It is very popular for Temporary Stays, whether for vacations, professional missions or trial periods in a new city.

For the owner, it often offers a Higher Profitability, thanks to rents that are higher than those for bare homes. In addition, a furnished lease allows more flexibility in terms of duration and rental conditions, which is an advantage when you want to be able to recover the property more easily.

Advantages:

• Higher Rent, offsetting management and maintenance costs.
• Contractual flexibility, especially during the term of the lease.
• Attractive for varied profiles: expatriates, students, posted workers.

Disadvantages:

• Obligation to Provide and maintain furniture according to the standards in force.
• Faster wear of equipment (sofa, bedding, household appliances).
• Request More Demanding in Management (inventory, equipment renewal, cleaning between tenants).

💡 Good to know : The choice between bare and furnished also has an impact on the applicable tax regime. La Furnished Rental Allows you to opt for the LMNP regime (Non-Professional Furnished Renter), which can offer significant tax advantages. On the other hand, the Naked Location Is based on traditional land incomes, which are more rigid but sometimes better adapted to certain profiles.

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Taxation of Renting a Second Home

Renting a second home generates rental income subject to specific taxation. It is essential to understand the various tax obligations to optimize the management of your property.

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1. Income tax

Location Nude

Income from Naked Rentals is taxed in the category of Land Revenue. Two regimes are possible:

• Micro-land : applicable if your annual rental income does not exceed €15,000. You then benefit from a flat rate reduction of 30%, without the possibility of deducting the actual expenses.
• Real Regime : mandatory in excess of €15,000 in annual rental income or on option. It allows you to deduct real expenses (work, loan interest, insurance, etc.) from your rental income.

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Furnished Rental

Income from furnished rentals is taxed in the category of Industrial and Commercial Benefits (BIC). Two statues exist:

• Non-Professional Furnished Rental Company (LMNP) : if the annual rental income is less than €23,000 or represents less than 50% of the total income of the fiscal household.
• Professional Furnished Rental Company (LMP) : if the annual rental income amounts to €23,000 and represents more than 50% of the total income of the fiscal household.

In both cases, you can opt for:

• Micro-Bic : flat rate reduction of 50% on rental income (71% for classified furnished tourist accommodation), without deduction of actual expenses.
• Real Regime : allows you to deduct real expenses and amortize real estate and furniture, thus reducing the tax base.

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2. Property tax and housing tax

• Property tax : due annually by the owner, calculated on the cadastral rental value of the property.
• Housing tax : although abolished for main residences, it remains applicable to second homes. In some municipalities, especially in tense areas, an increase of up to 60% may be applied.

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3. Real estate added value

In the event of the resale of your second home, the capital gain realized is subject to:

• Income tax : 19%.
• Social Security Contributions : 17.2%.

Detention allowances apply:

• Full income tax exemption after 22 years of ownership.
• Total exemption from social security contributions after 30 years of detention.

A surcharge of 2 to 6% may be added if the net taxable capital gain exceeds €50,000.

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4. Real Estate Wealth Tax (IFI)

If the net value of your real estate assets (main and secondary residences, rental properties, etc.) exceeds 1.3 million euros, you are subject to the IFI. The second home is taken into account for its market value on 1 January of the tax year, without an allowance.

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5. Declarative Obligations

Since January 1, 2023, all owners must declare the occupancy of their real estate properties on their personal space on the impots.gouv.fr site, under the heading “Manage my real estate properties”. This declaration allows the tax authorities to determine which homes are subject to housing tax or vacancy tax.

It is recommended that you consult a tax advisor or a chartered accountant to choose the tax regime that best suits your situation and optimize the management of your second home.

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The Essential Clauses of the Secondary Residence Lease

When drafting the lease, certain clauses are essential to frame the relationship between the lessor and the tenant:

• Identity of the Parties : Name and address of the lessor and the tenant.
• Housing Description : Address, area, number of rooms, equipment and general condition.
• Lease Length : Rental start and end dates.
• Rent Amount and Payment Terms : Amount due, date of payment, possible revision.
• Security deposit : Amount and conditions of return.
• Special Clauses : Conditions of use of the accommodation, respective responsibilities, Resolutory clause in case of breach of obligations.

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Specific clauses of the secondary residence lease

The lease for a second home, governed by the Civil Code, offers a great deal of contractual freedom. However, some clauses are strongly recommended to prevent disputes and to frame the rights and obligations of the parties.

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🔒 Resolutory clause

This clause allows the automatic termination of the lease in the event of a serious breach by the tenant, such as:

• Non-payment of rent or charges. (Source: Rental Management)
• Lack of home insurance.
• Proven neighborhood actually. (Source: Public service+3widget.online-sales-esf.com+3smartloc+3)
• Use of the home as a main residence without the agreement of the lessor.

It must be written in a precise manner to be legally valid.

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🤝 Solidarity clause

In case of shared accommodation, this clause states that each tenant is jointly and severally responsible for the full payment of rent and charges. Thus, if one of the roommates defaults, the landlord can turn against the others to obtain full payment.

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🛋️ Furniture and equipment clause

This clause states that the tenant is responsible for the routine maintenance of the furniture and equipment provided. In the event of deterioration attributable to the tenant, the latter must proceed with the repair or replacement at his expense. It is recommended to draw up a detailed inventory in the annex to the lease.

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🔄 Subletting clause

By default, subletting is not allowed. This clause may recall this prohibition or, if the lessor authorizes it, define its conditions (duration, rent, prior written agreement, etc.).‍

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💰 Penal clause

It provides for penalties in case of late payment of rent, for example:

• Increase of 5% of the amounts due after 15 days of delay.
• Occupancy compensation equivalent to twice the daily rent in case of occupancy without right or title after the end of the lease.

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🏠 Exclusive use clause

This clause recalls that the accommodation is rented as a second home and cannot under any circumstances be used as a main residence. It makes it possible to prevent attempts by the tenant to requalify the lease. (Source: Maître Valentin Simonnet (Lawyer)

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🧾 Agency fee clause

If the rental was carried out through an agency, this clause details the distribution of fees between the lessor and the tenant, in accordance with the legal provisions in force.

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📄 Mandatory appendices

The lease must be accompanied by the following documents:

• Entry inventory.
• Inventory of furniture (for furnished rentals).
• Energy performance diagnosis (DPE).
• Tenant's home insurance certificate.
• Condominium regulations (if applicable).

By integrating these specific clauses into the secondary residence lease, the parties secure their contractual relationship and minimize the risks of litigation. It is advisable to call on a real estate professional or a lawyer to draft the contract in order to ensure its compliance with legal provisions.

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Termination of the Secondary Residence Lease: Notice and Conditions

Termination by the Tenant

In the context of a secondary residence lease, the tenant may cancel the contract at any time, subject to compliance with the terms and conditions set out in the lease. The law does not impose a specific notice period for this type of lease, thus offering great contractual freedom to the parties. It is therefore essential that the contract clearly specifies the notice period to be respected by the tenant.

Cancellation procedure:

• Written notification : The tenant must inform the lessor of his decision by registered letter with acknowledgement of receipt (LRAR), bailiff's act or hand-delivered against receipt.
• Notice period : The deadline starts from the receipt of the notification by the lessor.
• Obligations during notice : The tenant remains liable for rent and charges until the effective end of the notice period, unless otherwise agreed with the lessor.

Practical example:

If the contract stipulates 2 months' notice and the tenant sends his cancellation letter on June 1, the lease will end on July 31.

Termination by the Owner

The lessor may also terminate the lease, but only under the conditions provided for in the contract. Unlike primary residence leases, the law does not strictly regulate the termination of secondary residence leases, leaving a great deal of leeway for the parties to define the terms of termination.

Cancellation conditions:

• At the end of the lease : The lessor may choose not to renew the lease at the end of the term, respecting the notice period stipulated in the contract.
• Resolutory clause : In the event of a breach by the tenant of his obligations (non-payment of rent, damage, etc.), a resolutory clause may allow the lessor to terminate the lease by operation of law, after a formal notice that has remained unsuccessful.
• Early Termination : If the contract so provides, the lessor may terminate the lease before its end, respecting the conditions and deadlines defined contractually.

Cancellation procedure:

• Written notification : The lessor must inform the tenant of his decision by LRAR, bailiff's act or personal delivery against receipt.
• Notice period : The deadline starts from the receipt of the notification by the tenant.

Practical example:

If the contract provides for a cancellation clause in the event of non-payment of rent and the tenant is in arrears in payment of more than two months, the lessor may initiate a cancellation procedure after a formal notice that has not been effective.

It is crucial that the second home lease contract precisely details the terms of termination, in order to avoid any disputes between the parties. In the absence of clear contractual provisions, parties will have to refer to the general principles of contract law, which can lead to legal uncertainty.

To secure the rental relationship, it is recommended to call on a real estate professional or a lawyer when drafting the lease.

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Conclusion

La Second Home Rental offers significant contractual flexibility for owners and tenants. It is crucial to fully understand the Items 1708 of the Civil Code that govern this type of contract and to choose the Type of lease The most suitable. Whether for a Bare or furnished rental, it is essential to write the Rental contract and to respect the administrative procedures with the town hall.

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❓ FAQ

1. What is the difference between a primary residence lease and a secondary residence lease?

One Primary Residence Lease Is governed by the ALUR law and further protects the tenant. One Second Home Lease Is governed by the Civil code, offering more flexibility to the parties.

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2. Can we rent a second home as a vacation rental?

Yes, but it is necessary to check the regulations in force in your municipality and to make a Declaration to the Town Hall If the accommodation is offered in Furnished Tourist Accommodation.

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3. What are the tenant's obligations in a second home lease?

The Tenant Must Pay your rent, maintain the home and respect the conditions of Lease agreement. He must also take out appropriate home insurance.

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