What are the different types of lease for furnished rentals?

Do you own a furnished property that you want to rent out? Are you wondering what type of lease you should ask your tenant to sign?
For furnished rentals, there are several different types of contract according to the length and purpose of your tenant’s stay.
Lodgis has the answers…

The Furnished Rental lease for Primary Residences

If the property is the tenant’s primary residence they should sign this type of lease.
This rental contract, subject to Law No. 89 – 462 of 6th July 1989, lasts for a period of 12 months, and is renewable automatically.
If the tenant is a student, the duration of the lease can be reduced to 9 months. Should the tenant wish to extend the lease at the end of this rental period, a 12 month, tacitly renewable contract can be agreed with the landlord.

The amount of rent charged is at the landlord’s discretion, but should be decided in respect to any rental frameworks that may exist for the area in which the property is situated

The landlord may ask the tenant to pay a security deposit, equivalent to two months’ rent (excluding charges).

The tenant is able to terminate the contract at any time subject to one month’s notice.

If the landlord does not wish to renew the lease, they must inform the tenant three months before the lease is due to be renewed. They must also be able to justify their refusal, either due to their decision to reclaim or sell the property, or for legitimate and serious reasons such as the failure of the tenant to uphold any aspect of the lease agreement. Under the student lease, the landlord does not need to give notice to their tenant. The student contract is not automatically renewed and will terminate at the end of the rental period.

The Bail Mobilité

This new type of furnished rental contract, introduced as part of the ELAN law, came into force in November 2018. It is intended for tenants who are currently travelling for work or studies (including students, interns, those in occupational transfer or vocational training) who need short-term accommodation for a period of between one and ten months.

The amount of rent charged is at the landlord’s discretion, but should be decided in respect to any rental frameworks that may exist for the area in which the property is situated.

The landlord need not ask the tenant to pay a security deposit.

Good to know: in order to keep in line with the new legal framework brought into place under the ELAN law, Lodgis aims to work with landlords wishing to provide the Bail Mobilité, to ensure that they receive comprehensive risk coverage, far superior to that of the traditional security deposit.

The tenant is able to terminate the contract at any time subject to one month’s notice

To find out more, read our article on the Bail Mobilité.

The Furnished Rental lease for Secondary Residences

This contact is intended for tenants who need short-term accommodation but are not eligible for the Bail Mobilité (due to divorce, building works in a primary residence, hospitalisation of a close relation, etc.). The contract lasts for a minimum of three months, from one fixed date to another, during which the property is not the primary residence of the tenant. The lease therefore terminates at the end of the rental period, without the landlord having to give notice.

The tenant is bound by the contract for the entire duration of the rental period.
However, in order to ensure that this lease works for the tenant too, Lodgis offers some flexibility for those renting a property for more than 3 months, allowing the tenant to terminate the contract at any time subject to one month’s notice.

The amount of rent charged is at the landlord’s discretion.

The landlord can ask the tenant to pay a security deposit. With Lodgis, the amount charged depends on the length of the stay, but ranges from half a month’s and two month’s rent.

To recap, here is a summary of the different types of furnished rental contract:

The seasonal furnished rental contract lasts a maximum of 90 days, and is non-renewable.
The tenant is therefore bound by the contract for the full length of their stay, unless the specific conditions of the contract allow them to terminate before the agreed end date.
The amount of rent charged is at the landlord’s discretion.
The landlord can ask the tenant to pay a security deposit.
There are certain conditions to be able to let a property using this contract:

In areas with a population of more than 200,000 people, if the furnished rental property is the primary residence of the landlord, it can be rented for up to 120 days in total over a one year period.
If the property is the secondary residence of the landlord, and is situated in an area with a population of more than 200,000 people, a change of use must be authorised by the local authorities: a process which is often both lengthy and costly.
Whether it is their primary or secondary residence, the owner will have to register the property with local authorities if it is located in an area with a population of more than 200,000 where this has been made compulsory. In other areas, if it is the secondary residence of the landlord, prior notice to the local authorities must be given.