Why rent your apartment to international companies in Paris: Benefits for landlords
Yes, corporate customers have always been favored by homeowners. Normal! A business - a moral person - is, in essence, more steady than a physical person who could lose his or her job, divorce, or become seriously ill. In the first case, the rent will be paid no matter what, in the second, difficulties with payments may occur, even if the person is serious.
Since international companies often pay the security deposit of their employees, the latter, therefore, feel compelled to take good care of the furnished apartment and its inventory, being accountable to their company. Businesses do not like their security deposits not being returned at the end of the lease!
Other advantages exist, such as the duration of occupation of the apartments for rent. For example, if it is a Government Institution, lease duration terms are generally between one and five years.
For international companies, furnished corporate housing in Paris ranges from one to three years. However, there is a risk that the person occupying the rented apartment will be transferred elsewhere. In this case, the company will turn to the landlord's representative or to the landlord himself, as was conducted in the original contract, and often propose another employee, "Corporate," for the same apartment. The lease can then continue as a corporate lease. Some minor costs may be involved, since it is customary to write a new corporate lease for the new occupant, with his/her function in the company and the duration of his/her mission appearing in the "lease terms".
In summary, the owner of a furnished apartment renting to a Corporate tenant is reassured for the following reasons:
- strong financial guarantees
- tenants responsible for the apartment and its furnishings
- longer duration of leases
Corporate rental vs. traditional rental: Profitability analysis
Yes, rental budgets for Corporate employees are often higher than regular budgets, for they are part of a package offered to expatriate corporate employees. But, the owner's investment is usually more consequent. Indeed, the business clientele is accustomed to high standards: quality beds, modern bathrooms, fully equipped kitchens, comfortable and contemporary furniture, and internet in working order.
A furnished rental usually yields 10 to 20% more than an empty, seasonal, or principal residence.
Tax Benefits: advantages for owners of furnished apartments
Yes, the owner benefits from a 50% flat-rate abatement of up to 33,000 € in rental income with the “micro-BIC” tax scheme. Beyond 33 000 €, the “simplified real” scheme loses a 50% abatement but allows to amortize the property.
Corporate lease: Flexibility and benefits for landlords and tenants
Yes, the Corporate lease is subject to the Civil Code and offers greater flexibility to both the Landlord and its Corporate tenant, in drafting the terms of the lease. The owner is free to set all the clauses that constitute the contract and the Corporate client is free to accept or request changes specific to his particular case.
Furnished apartments vs. hotels: Corporate clients' preferences
The psychological side of things plays a lot in this decision. An expatriate person or expat in Paris family is looking for the comfort of a "home" rather than living in an umpteenth hotel. Being in one’s apartment makes it easier to discover how people live in one’s new country. Living in a building means mingling with people native to the country; hence, it is a fuller experience for the expatriate. Having neighbors, chatting a few words upon meeting at the elevator, and saying hello in the language of the expatriate country make one feel good. There is a reassuring aspect for Executives of expatriated families to belong to a community.
This is not the case in a apart-hotel where neighbors change almost every day and where all languages are spoken, as in the Tower of Babel, but French. In addition, the overall cost of a furnished apartment for rent is very competitive when reduced to its cost per day.
Paris's most sought-after districts for furnished business rentals: Guide to corporate housing
We tend to think that central and western Paris are the only areas sought after by business customers. However, the experience of the agency "Paris Rental" specialist in the furnished corporate rentals in Paris for 30 years, shows a different trend. Indeed, thanks to Internet, expatriate employees know more and more about Paris and its neighborhoods upon arriving in France. This corporate clientele has now specific requirements related to either culture, green areas, transportations, lively or calm neighborhoods, etc. All Paris districts seem to be cosmopolitan nowadays.
To know how to find an apartment rental during your mission in Paris, check out this guide on finding suitable corporate housing in Paris for professionals.
Photo by Scott Graham
Writer: Michael HELLEU
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