Who pays what? Here are the basic rules for sorting out what you pay for and what your tenant pays for.
The overall division of costs and charges
Houses and apartments always incur maintenance and even repair expenses. Some of these regular maintenance costs and minor repairs must be met by the tenant:
- water, fuel (gas and/or heating oil) and electricity bills,
- maintenance products and supplies, bulbs, etc.,
- garden maintenance, where appropriate.
The tenant must also pay the rental charges. These are his/her share of the co-ownership charges. These charges relate to the maintenance of the communal parts of the building, the elevator, part of the security charges, etc.
You are responsible for meeting the cost of:
- larger property repairs: replacing the boiler, redecoration, replacement of shutters or taps, and repairs to equipment listed in the rental contract (e.g. refrigerator),
- the other co-ownership charges (administration, compulsory equipment, etc.).
Taxes and duties
You must pay the taxes related to your ownership of the property: taxe foncière (property tax).
The tenant pays those taxes related to his/her use of the property: taxe d’habitation (residence tax), the taxe d’ordures ménagères (household waste disposal tax) and the TV licence (where applicable).
These are all local taxes, and their amount therefore varies from district to district. Please ask your local authority for more information.
Insurance
Your tenant must take out household insurance.
As the owner, you may also take out a special Propriétaire Non Occupant (Non-Resident Owner) policy. This will be useful if a problem occurs that is not covered by your tenant’s insurance or the co-ownership policy: faulty maintenance, disturbance of possession, damage to communal areas resulting in consequential damage to the accommodation (e.g.: fire, water damage, etc.)…
Good to know: you can also ensure the profitability of your investment by taking out insurance to cover unpaid rent and/or vacancy.
Payment of rental charges
The tenant pays the rental charges monthly in the form of “provisions for charges”, at the same time as the rent. A balancing payment is made annually.
The amount of the monthly provisions is calculated on the basis of the previous balancing calculation and on the forecast co-ownership budget, as appropriate.
What to do if you need help
If you are not happy about managing these issues yourself, you can delegate them to a property management company, which will calculate the rental charges, look after the payments and make the reconciliations for you.
Your Bouygues Immobilier advisor can put you in contact with one of our partner property management companies.
