Alexis Alban, Deputy CEO of Lodgis, gives his perspective on France’s Furnished Rental Market just a few weeks after de-confinement. Even though traditional furnished rentals have managed to fare well during this crisis, the market has nevertheless had to reinvent itself. Alexis Alban sees a real opportunity to rethink this sector and the job description of a real estate agent.
Lodgis helps a large number of foreign and domestic tenants, whether they’re academic or professional, that move often. Thus, confinement resulted in lowered activity at Lodgis that, nevertheless, still managed to maintain an occupation rate of roughly 90% for the majority of their managed properties. “During this period, we truly prioritized helping our renters and our property owners as much as possible, our keywords are: flexibility, reaction and adaptability. We’ve done this all year and have wanted to go further with the creation of our “à la carte” services, which are adapted to specific problems that our clients are met with (early departure, keys that haven’t been returned, personal items left in the property, legal advice, etc.) or even the creation of Operation Solidarity “Housing for Heroes” … it’s in moments of crisis that we see the true value of our help and our role as an intermediary, both in expertise and in the field.” Alexis Alban explains. It is thanks to their 100% digital model and its ability to reinvent itself to offer more flexible options that Lodgis could quickly and effectively implement these solutions in order to get through this crisis and return to a semi-normal level of activity today.
Numerous property owners are turning away from furnished touristic rentals and returning to traditional, long-term furnished renting. This trend, initiated as a result of ELAN law going into effect at the end of 2018, has been further confirmed during confinement. Between April and May of 2020, the number of requests from property investors increased by 85%, and 40% of the new contracts signed during this crisis period were with property owners who had, until this point, rented their properties with Airbnb; and these properties are somewhat shaking up the furnished rental market. Modern and well equipped, they appeal to tenants who find themselves in a position in which they have the upper hand, with supply being higher than the demand.
In terms of tenants, Lodgis received an equivalent request volume at the beginning of June as that of the same period the year before. 72% of these requests were for stays longer than 6 months, 75% were from French tenants or foreign tenants that are already in Paris, and 60% were for rental periods starting in July, as well as August and September. “Countries in the Schengen zone are de-confining little by little. The British, Italian and Spanish populations are again soliciting our services to help them in their apartment searches. We are, of course, happy to see a return of this European clientele that usually makes up roughly 1/3 of our tenants…” Alexis Alban assures.
Furnished rentals are being emulated with many contributors in favor of it, strengthening the market, and the regulations are changing as a result of new trends in housing searches. Rental investment has proven itself as well: it’s enduring and profitable. However, the recent difficulties experienced by Airbnb show that the touristic furnished rental model has weakened, especially in large French cities. Traditional furnished rentals represent a more stable and secure alternative by offering numerous advantages, which aren’t present in popular seasonal furnished rentals. In fact, it responds to the new needs of an increasingly mobile demographic of tenants, and it’s more attractive for property owners and investors (more flexible regulations, advantageous tax laws, 31% higher occupation rate, more control of the rental period, rent guarantee…).
“Despite this critical period for the market, we see this hardship as an opportunity to rethink rental investment in its entirety. We want to bet on a solid future for traditional furnished rentals, provided that it is digital and flexible, and thus redefine the description of a real estate agent in this context, an aspect that will continue to evolve. In the future, the real estate agent’s value will be measure by the personalized and sensible support that they offer in every situation,” explains Alexis Alban.
Further reading:
Are you the owner of a furnished rental property? Benefit from Lodgis' exptertise as a specialist in furnished rentals and rental management... starting at 3.9% including taxes!
Do you want to list your property on our website? Post your listing right now, it is FREE and NON-EXCLUSIVE!
List your propertyDo you want to learn more about our rental offers and management starting at 3.9% including taxes? Our expert agents are at your disposal!
Contact us +33 1 70 39 11 07