The furnished rental market in Paris is booming, offering a profitable opportunity for overseas property owners looking to rent out their Paris pied-à-terre on medium-term leases.
Paris, the city of lights, is not only a dream destination for travelers but also an increasingly attractive rental market for property owners. If you're lucky enough to own—or plan to own—a pied-à-terre in Paris, renting it out while you're living abroad could be an excellent way to unlock passive income.
Fact: Recent data shows an 18% increase in demand for furnished rentals in 2024, with tenants staying on average 8.3 months in Paris.
This shift presents a promising prospect for medium-term rental strategies, particularly if you are looking to optimize the use of your pied a terre without committing to long-term leases.
🥐 The 2024 Rental Demand Surge: What’s Driving the Trend?
The past few years have seen dramatic shifts in how people approach travel, work, and living arrangements. With the rise of remote work, longer stays, and an influx of international students and business professionals, the demand for medium-term rentals (typically 1 to 9 months) in Paris has skyrocketed. This trend is particularly noticeable in central arrondissements, where furnished apartments, especially those near iconic landmarks or key business hubs, are highly sought after.
Demand for these kinds of rentals is expected to remain strong, driven by:
Remote workers and digital nomads: Many professionals now choose to work from abroad for extended periods, making furnished, short-term living arrangements ideal.
International students: With top universities like Sorbonne, Sciences Po, and HEC Paris attracting students from around the world, Paris remains a hub for higher education, pushing demand for flexible housing options.
Corporate travelers: Business professionals who are in Paris for a few months for assignments, projects, or training need high-quality, turn-key living solutions.
Tourism and seasonal interest: Paris continues to be a top destination for travelers, and people often prefer a more homely, private experience over traditional hotels.
According to industry reports, the medium-term rental market is expected to grow by 20-30% year-over-year in 2024, with a strong preference for properties that are move-in ready and well-located.
🥐 Why Medium-Term Rentals Are in High Demand in 2024?
While short-term rentals (think Airbnb) of a few nights are still popular but practically illegal in Paris, many people now prefer longer stays due to the flexibility of working remotely and the desire to fully experience Paris without the transient nature of a hotel stay.
In 2024, the demand for medium-term furnished rentals (typically 1 to 9 months) in Paris is on the rise, and here's why it’s a smart move to consider renting your Parisian hideaway while you’re away.
The length of rental contracts in Paris for medium-term leases in 2024 is 8.3 months on average.
For Paris property owners, the middle ground between long-term leases (which can lock up a property for a year or more) and short-term vacation rentals offers a highly lucrative opportunity. Medium-term tenants are often less transient than vacationers and can offer more stability in terms of rental income.
🥐 Who Are the Typical Tenants for Medium-Term Rentals?
The profile of tenants for medium-term rentals in Paris is diverse, which can be an advantage for landlords looking to target a wide range of renters. Some of the most common types of tenants in 2024 include:
Corporate Expats and Business Professionals: Many companies are relocating employees to Paris for projects or temporary assignments. These tenants are often looking for a place that feels like home—furnished, well-equipped, and centrally located—during their stay.
Students and Academics: International students and faculty members often seek furnished apartments for a semester or an academic year, particularly those studying at prestigious institutions. Paris remains a magnet for scholars from all over the world, and they often prefer a more independent living arrangement over university dorms or shared accommodations.
Remote Workers and Digital Nomads: With the remote work revolution still going strong, digital nomads and remote workers increasingly choose to "live where they want to work." Paris, with its vibrant culture, excellent infrastructure, and international appeal, is an ideal base for people looking to live and work in the city for a few months.
🥐 Tax Advantages of Renting Furnished Property: LMNP Status
If you are considering renting out your Paris property, the LMNP (Loueur Meublé Non-Professionnel) status offers significant tax benefits for non-professional landlords renting furnished properties.
LMNP regime provides flexibility and simplicity:
• LMNP does not require you to establish a company. It is straightforward to set up and maintain, making it ideal for property owners abroad.
• The regime allows you to combine rental income with other income sources without significant administrative burdens.
I can recommend an english-speaking tax professional to my clients, including those who contemplate renting out their future Paris property.
🥐 Why Renting Out Your Paris Pied-à-Terre While Abroad Is a Smart Investment
Steady Rental Income: Renting your pied-à-terre on a medium-term basis allows you to earn a steady stream of rental income, often at a higher rate than long-term rentals. Medium-term tenants typically stay longer, which means fewer vacancies and less hassle.
Property Maintenance: Because medium-term renters are typically more stable, there's less wear and tear on the property than with short-term vacation rentals. These tenants are more likely to treat the space with respect and keep it well-maintained, reducing costs associated with frequent cleaning and repairs.
Furnishing Flexibility: The demand for furnished properties continues to rise. Many renters in the medium-term market prefer properties that are fully furnished and equipped, meaning you can tailor your property to meet this demand without worrying about long-term storage of personal items.
Market Resilience: The medium-term rental market has proven to be more resilient during economic downturns or global crises than the short-term or vacation rental market. With medium-term rentals, you have the flexibility to adjust prices or terms based on market conditions.
Tax Efficiency: LMNP status provides a clear and advantageous framework to reduce tax burdens. I can recommend an english-speaking tax professional to my clients, including those who contemplate renting out their future Paris property.
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! 🥐 🇫🇷
As always, I love to read your comments and answer your questions.
Tomette Paris® is a Registered Trademark in France. INPI certificate number 24 5023079 dated 21 January, 2024.
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