How to increase the rental value of your property ?

To optimize the return on your investment in real estate, increasing the rental value of your property is one of the most effective solutions. Energy renovation, maintenance, and furnished rentals are among the strategies that can boost your property's rental value.

Energy Renovation Increases Rental Value

To enhance the green value and thus the rental value of your real estate, one of the most beneficial solutions is energy renovation. Besides reducing energy consumption and the environmental impact of your property, energy renovation makes it more attractive to potential tenants. Moreover, energy-inefficient properties are gradually being phased out of the rental market.

In January 2025, properties rated G on the Energy Performance Certificate (EPC) will no longer be rentable, followed by those rated F in 2028. Rents for these energy-inefficient properties have been frozen since 2022, and landlords can no longer charge additional rent. These increasing restrictions make such properties less appealing to tenants, especially in the context of rising energy prices and growing environmental awareness. Interior or exterior insulation, replacing exterior windows, installing a wood-burning stove and/or a heat pump... various types of work, eligible for energy renovation grants (MaPrimeRénov’, Energy Saving Certificates, etc.), can improve a property's EPC rating and thus increase its rental value.

The Importance of Maintenance for Rental Value

Besides energy renovation, other types of work can be considered to increase the rental value of a house or apartment. Indeed, a renovated property offering a level of comfort meeting current standards will be more attractive to potential tenants. Worn-out floors, shabby walls, faulty switches, outdated kitchen... a poorly maintained property can create a bad overall impression. By changing the floor coverings, repainting the walls, or modernizing the kitchen or bathroom furnishings, you can limit tenant turnover and reduce vacancy periods.

Moreover, these renovations can potentially allow you to charge higher rent, as some tenants are willing to pay more for a property offering premium equipment and finishes. Additionally, by updating plumbing and electrical systems and performing minor repairs between tenants, you reduce long-term maintenance issues (such as hot water tank problems or leaks), helping you preserve the property's value and avoid significant unexpected expenses.

Furnished Rentals to Increase Rental Value

A profitable strategy to increase the rental value of a property is to offer it as a furnished rental. Although the initial investment is higher than for an unfurnished rental, since a furnished property "must be equipped with sufficient and quality furniture to allow the tenant to sleep, eat, and live properly," as specified by Article 25-4 of the law of July 6, 1989, furnished rentals allow for 5 to 30% higher rents. Additionally, furnished rentals are fiscally advantageous, enabling you to benefit from the LMNP (Non-Professional Furnished Rental) status, which gives access to the micro-BIC regime or the actual benefit regime. The former allows for a 50% deduction on your rental income, while the latter enables you to deduct expenses related to your investment (co-ownership fees, property tax, notary fees, works...) for their actual amount through the depreciation mechanism. If your deductible expenses exceed the rent you receive, a deficit appears, which can be carried forward to the rental income of the next 10 years, thus allowing you to avoid paying taxes on your rental income for several years.


Source : edito.seloger.com
Back

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.