Invest in rental property!

A well-chosen neighborhood is a well-served neighborhood

Above all, don't give in to impulse buying! When it comes to real estate, there's no need to rush. Investing in rental property is an adventure not to be taken lightly! Take the time to prospect and study the real estate market. Select a buoyant geographical area where rental demand is strong. Give preference to regions with strong economic potential, which create jobs and are therefore likely to attract new arrivals. University towns also offer good rental prospects, as students are often looking for a small apartment to live in while they study. Next, refocus your search on the neighborhood: is it close to public transport, does it have all the necessary "amenities" (shops, crèches, schools, green spaces...), is it quiet? Put yourself in your future tenant's shoes. But not too much! Don't get your affectations involved, as this property is not intended to be your principal residence. It has to suit and please as many people as possible.

Buying close to home

If you've chosen the "I manage my own rental" option, proximity to your purchase is essential for 3 reasons:
- You already know the area in which you are investing,
- You can intervene directly and quickly in the event of a problem,
- You won't be far away to check in and out.

The right balance between surface area and profitability

To find the right balance, favour small and medium-sized apartments (studios, 2/3 rooms), which make up the bulk of the rental market (especially in university towns where students often have difficulty finding a roof over their heads). Small surfaces are generally more expensive per^m2 than large ones, and the purchase price is often lower. On the other hand, there's a greater turnover of tenants, especially if you're in a student town. You can also invest in a larger apartment, or even a house. Be careful when investing in condominiums. Make sure you know what work has already been done and what work is likely to be voted on, as the bill can be quite steep! With a larger property, you're more likely to attract families, and that's a guarantee of stability for you.
To get the most accurate estimate, calculate your profitability:

• gross return = annual rent / property price x 100. Example for a studio purchased for 130,000 euros and rented for 450 euros: (450 x 12) / 130,000 x 100 = 4.15%.
• net return = annual rent - (property tax + co-ownership charges + management fees + CSG) / price of property x 100.

The forgotten good tenant...

The ideal tenant is one who pays his rent by monthly bank transfer, without you having to ask for it. He's the one who doesn't call you twice a week to change a light bulb or because his front door squeaks... Above all, he's the one who gives you the apartment back "clean" at the end of the lease, and to whom you return his deposit with a smile! But how do you find that rare gem?
Select your future tenant with the utmost care, and don't hesitate to ask for certain proof of payment to minimize the risk of non-payment. Make sure your tenant is financially solvent. To do this, ask for proof of income (last 3 pay slips, employer's certificate for an employee, last tax notice, etc.). If the rent is less than a third of your income, you can also ask for a joint and several guarantee.
If you're sharing a flat, ask for a deposit for the entire rent for each tenant. You can also take out a rental guarantee with your insurer, guaranteeing payment of the rent.

Stéphanie Swiklinski