Do you own a second home and live there for less than 8 months of the year? We’ll tell you all about the different leases available to you. Whether you’re an owner planning to rent out your property, or a tenant looking for the ideal vacation home, we explain everything from regulations to practical advice to make this often complex subject more accessible.
What is a second-home lease?
Before diving into the details, it’s essential to understand exactly what a second home is, and how it differs from a primary residence. A second home is generally used by homeowners for vacation or as a rental investment. Unlike a principal residence, it is not occupied all year round by its owners. This is known as bare or furnished rental. Here too, regulations are often more flexible than for a lease on a principal residence.
Seasonal rental
Seasonal rentals are a popular choice among homeowners looking to make the most of their second home, while still being able to stay there themselves from time to time. The lease for a seasonal rental cannot exceed 90 days. Also, the total rental of your property may not exceed 120 days per year. If this is the case, then you’ll qualify as a non-professional furnished rental. Here’s what you need to know to succeed in this field:
1. Information to be included in the lease contract
– A clear indication that the contract is for the lease of a second home
– The identity of the owner/landlord and tenant
– The description of the property and the rental period
– The length of the notice period
– The amount of rent and deposit
– And finally, the essential clauses of the contract.
– The regional appendix containing the rights and duties of landlords and tenants, for example, must also be included.
2. Preparing for tenants' arrival
Before you put your second home up for seasonal rental, make sure you prepare it carefully to welcome your future tenants. This includes: – Deep Cleaning: Hire professional cleaning services to ensure the house is spotless when tenants arrive. – Decoration and furnishings: Opt for a warm and welcoming decor. Think local or thematic touches to create a memorable ambiance.
3. Rent amount
Pricing is crucial to attracting tenants while maximizing your income. Research rental prices in your area and adjust for your property’s unique features. Seasonality: Prices can vary considerably depending on the season. Increase rates slightly during high-demand periods such as vacations and local festivals.
Long-term rental
Long-term rental is another option for owners looking for a stable source of income while minimizing management efforts. Here’s what to keep in mind:
1. Solid lease contract
For long-term leasing, a well-drafted lease contract is essential. It should include the following details:
- Lease term: Specify the exact lease term and renewal conditions.
- Rent Review Clause: Indicate whether and how the rent may be reviewed.
- Type of rental property
- Cancellation conditions
- Rent, service charges and security deposit
2. Maintenance and repair
Clearly define who is responsible for general property maintenance and minor repairs. Major structural repairs are generally the responsibility of the owner.
3. Tenant-owner relations
Foster a harmonious relationship with your tenants by being respectful and responding promptly to their concerns. This can lead to longer-lasting tenants and less turnover.
Second home lease regulations
Regulations concerning seasonal and long-term rentals can vary considerably from one region to another. It’s crucial to find out what the local rules are, including : – Rental Permits: Some locations require a special permit for short-term rentals. Make sure you meet all legal requirements. – Taxation: Rental income may be subject to tax. Consult a professional about your tax obligations.
Second-home leases offer flexibility for both owners and tenants. Whether you opt for a seasonal lease to take advantage of extra income, or a long-term lease for more stable management, it’s essential to understand the legal and practical nuances of each option.
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