Rent a Second Home for the Year

The market for second homes in France is undergoing a major change: many owners note that their property remains unoccupied for several months of the year, which increases the costs (taxes, maintenance, heating) with no return on investment. According to INSEE, second homes represented around 3.2 million units, or 10% of the national residential stock.

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Faced with this, renting for the year seems to be a relevant strategy to optimize your performance, secure your income and avoid rental vacation periods. However, embarking on this path requires a good knowledge of the issues: legal, fiscal, administrative, but also practical and management.

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In this article, we will first analyze Why rent a second home for the year Can be an alternative for a lessor. Then Review Legal and administrative differences To know in order to successfully complete this process in full compliance. To find out more about preparing for this rental, and in particular about the classic rental of a second home, read This article.

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1. Why rent a second home for the year?

Renting a second home for the year can offer a more stable return than a seasonal operation and simplify rental management: you target a tenant who stays longer, you reduce rotations, frequent inventories and the vacancy between two stays. It also makes it possible to smooth your income and to benefit from a prolonged occupation, while remaining in a more secure environment for asset management.

In this section, we will look at the potential return compared to vacation rentals, the management and risks associated with the vacation, and then the tenant profiles that are most suitable for this type of long-term rental.

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Potential Return vs Vacation Rental

Yearly rental allows you to obtain stable and regular profitability. In comparison, vacation rentals can generate higher revenues over very short periods of time, but they also involve a high vacancy, periods without tenants and heavy management (cleaning, reservations, changing tenants). According to a guide from Nexity, the long-term rental of a second home indicates a “continuous rental of the property for a period of one year, generally renewable.” (Source: Nexity)
Thus, even if the monthly rent may be less than for a week of tourist rental, the occupancy rate reaches 100% over 12 months in many cases, which secures income and limits hazards.

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Rental Vacancy, Simplified Management, Tenant Stability

Rental vacancy is a significant cost for owners. By renting for the year, the property is occupied continuously, which reduces periods of no income and frequent interventions. This simplifies management (one lease, one tenant, less repair between two rentals). According to a consulting site, one of the disadvantages of long-term rentals is “a lack of flexibility: if you choose to rent your property for the year, you will have to commit to a longer period, at least one year.” (Source: Luko) However, for a lessor looking for stability and regular performance, this constraint can be an asset.

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Targeted tenant profiles (students, workers, families)

The choice of the tenant is decisive. Renting for the year makes it possible to aim for stable profiles: students in furnished rentals for the academic year, young workers on a mission, families looking for sustainable housing. These profiles generally offer better security than short-term renters. Of course, the property must be adapted (furnished or not, equipment, location) to the profile chosen to optimize the duration and quality of the lease.

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2. Legal and administrative differences

Renting your second home all year round involves clearly identifying the legal and administrative framework that differs from that of a main residence or a seasonal rental. This includes checking the statutes, respecting the procedures with the town hall and choosing the right type of lease. In this section, we will review: the distinction between secondary and main residence, the procedures for changing use or authorization required in a tourist area, then the specificities of the lease (furnished or unfurnished), its duration and its conditions.

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Secondary residence status vs primary residence

It is essential to make a clear distinction between a second home and a primary residence. The main residence must be occupied “at least eight months a year” with some exceptions. When you rent a second home for the year, the applicable rules are not those for a unit rented as a main residence. The lease, in particular, can be drawn up with greater freedom (duration, rent, notice) because the reinforced protection of the tenant of the main residence does not always apply. (Source: Paris Rental)

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Procedures at the Town Hall, Change of Use, Authorization (Tourism Zone)

Before renting a second home, check local obligations: depending on the location, a Authorization to Change Use May be required, especially in municipalities with more than 200,000 inhabitants. You must also file a declaration at the town hall if the accommodation is rented furnished. Failure to comply with these obligations may result in penalties of up to €100,000 in fines or the rehabilitation of the home.

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Furnished or unfurnished lease, duration, specific conditions

Depending on whether you rent furnished or empty, the rules vary. In furnished rentals for the year, the lease is generally for one year renewable or nine months if a student. One of the advantages is that you can deduct expenses and opt for long-term tax regimes (micro-BIC or real regime). A guide recalls that “long-term rental for a second home cannot be improvised... the taxation applied differs markedly from that of a main residence.” It is necessary to include in the lease all the conditions (minimum furniture, duration, security deposit) and to draw up an inventory to secure the relationship.

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3. Taxation & specific charges

Renting a second home for the year is not only a matter of rental management: it is accompanied by tax rules and specific charges that it is imperative to control. Understanding these constraints makes it possible to preserve the profitability of your property and to avoid unpleasant surprises. In this section, we will explore applicable taxation, local taxes, and anticipated charges.

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Local taxes and surcharges

As the owner of a second home, you remain liable for property tax and housing tax (for housing not used as a main residence).
For example: since January 1, 2023, the housing tax on main residences has been abolished, But It Is Still Due For Second Homes.
In addition, some municipalities may apply a Increase in Housing Tax for Second Homes, which can reach up to 60%.
It is therefore essential to assess this charge when you plan to rent your property for the year, as it can significantly impact your return.

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Rental Income and Tax Regime

When you rent your second home for the year, the rent received is included in your taxable income. The regime depends on the nature of the lease (furnished or unfurnished):

• If you opt for furnished rentals, you can choose the “micro-BIC” regime (50% reduction for income up to €77,700) or the real regime.
• If you rent naked (empty rental), then the income falls under property income, with a reduction of 30% up to €15,000 in income.
  For a one-year lease for a second home, the right choice of tax status can make the difference between an attractive net return and a disappointing result.

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Expenses, amortization and capital gain

In addition to taxes, you must anticipate the classic expenses (maintenance, condominium, insurance, heating) but also the taxation of the capital gain in the event of the resale of the property: unlike the main residence, the capital gain of a second home is Subject to tax.
Depreciation side: if you are renting furnished, and according to your regime, you can depreciate the furniture and the property itself, which reduces taxation (real regime). This remains to be evaluated with a professional accountant.

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4. Set the right rent and choose the right tenant

Setting a fair rent and choosing a suitable tenant are two pillars of the success of renting a second home for the year. An excessively high rent or an unsuitable tenant can quickly affect the profitability or tranquility of the lease. This section gives you the keys to properly position your property and select effectively.

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Analysis of the local market & fixing the rent

Before setting your rent, compare the local market: type of property, surface area, equipment, location. In coastal or tourist areas, the rent level may be higher but also more volatile. Using comparators or referring to professionals (agencies, real estate hunters) is recommended.
Also take into account recoverable and non-recoverable expenses, possible furnishings, as well as the fact that you are renting a property that was previously a second home: it may be offered at a price slightly higher than the standard park, but stability must come first.

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Adapted Tenant Profile

For a year-round rental, aim for reliable profiles: student, young active person on a mission, family looking for stability. These types often provide a lease of at least one year, better than the rotation of short-term tenants.
It is important to assess solvency (e.g. income ≥ 3 × rent), job stability, previous behavior. Mention in the announcement that the main use of the accommodation must remain rental all year round, to give credibility to the application.
In addition, make it clear that it is a long-term rental, which attracts serious candidates and limits tourist or short-term requests.

Choosing a reliable tenant is essential, consult Our dedicated article.

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Guarantees & adapted lease contract

You must check the guarantees: deposit, unpaid rent insurance, Visale guarantee according to profile. A well-selected tenant without guarantees remains a source of risk.
The lease contract must be serious, mention the duration, the conditions of use, the furniture (if furnished), the obligations of the tenant and the terms of the lease. A good lease helps to attract a reliable tenant and to secure the relationship.

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Download our checklist for renting your property.

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5. Management, supervision and best practices

Signing the lease does not mark the end of the work: the rental relationship must be actively monitored. Proactive management makes it possible to value the property, to limit unpaid payments, to maximize the duration of the lease and therefore the profitability. We explain to you how to set up this management on a daily basis.

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Welcoming the Tenant and Clear Communication

At the beginning of the rental, take the time to welcome the tenant, explain to him the living arrangements in the accommodation (operation, charges, rules). A welcome booklet or summary sheet is an excellent addition. This stage establishes a relationship of trust and limits the risks of abandonment or deterioration.

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Rent monitoring and proactive incident management

Set up monthly payment monitoring: delaying can be expensive. In case of delay, do a quick reminder and activate your guarantees if necessary. This applies both to the rental vacancy and to unpaid bills.
In addition, schedule annual maintenance (checking equipment, updating diagnoses, intermediate inventory) to maintain the quality of the property and attract a serious tenant for renewal.

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Optimizing the duration and profitability of the lease

A reliable tenant who stays for several years is a major asset. For this:

• Keep a competitive price, reassess each year (in moderation) according to the market.
• Offer a simple renewal system, while remaining vigilant about the lease.
• Value your property: modernization, energy label, good general condition. A well-maintained home is more likely to attract renewal.
  Finally, clearly indicate in the ad that you are offering a one-year rental of a second home: this attracts the right profiles and avoids short-term candidates.

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Conclusion

By deciding to rent your second home for the year, you are opting for a rental strategy that is both more stable and more serene than simple seasonal rental. You transform a property that is often unused for a good part of the year into a source of regular income, while simplifying its management.

Of course, this option requires that you master legal and fiscal obligations, that you choose a suitable tenant and that you put in place a solid lease and follow-up. Thanks to the advice shared in this article: from market analysis to daily management; you are now in a position to approach this project in a professional manner. For complete support, do not hesitate to contact Mecaza and consult the other resources on our blog.

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❓ FAQ

1. Can you rent a second home without permission?‍

Yes, but in some municipalities with more than 200,000 inhabitants, an authorization to change use or a declaration at the town hall may be required.

2. What is the minimum lease term for a second home rented year-round?‍

For a one-year rental, the lease can be for one year renewable (for long-term furnished accommodation) or according to the free conditions between the lessor and the tenant.

3. What are the tax differences between seasonal rentals and year-round rentals for a second home?‍

When renting for the year, the income comes into property income or, when furnished, into the BIC with the micro-BIC or real regimes. Seasonally, specific rules apply (tourist tax, furnished tourist declaration, etc.).

4. Can the rent be freely fixed for a second home rented for the year?‍

Yes: unlike some rentals of main residence in controlled areas, you have greater freedom to set the rent, as long as you respect the rights of the lessor and the tenant.

5. What type of tenant should you prefer to rent a second home for the year?‍

Choose a stable profile: a student in a furnished rental, a young active person, a family looking for sustainable housing. These profiles often offer long occupancy and simplified management.

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