Calculate a realistic return
Start with the number of nights you can realistically let: 12 to 16 full weeks on the coast, more if the property attracts bookings in the early and late season. Multiply by a weighted average rate, then deduct platform commissions, cleaning, concierge services, energy, insurance, property tax and an allowance for replacing furniture.
Observed net yields generally range from 3 to 6 % for well-located properties — significantly higher than for unfurnished letting, but with a substantial management workload.
What type of property should you buy?
The factors that drive occupancy rates, in order: walking distance to a beach or a lively centre, usable outdoor space (terrace, garden, pool), air conditioning, a parking space, and accommodation for 4 to 6 people — the most sought-after size.
A one-bedroom flat with no outdoor space, a fifteen-minute drive from the sea, is hard to let, whatever its purchase price. It is better to pay more for a property in strong demand than to secure a low price per m² for one that is difficult to market.
- Beach / town centre immediately nearby
- Usable, shaded outdoor space
- Air conditioning and good energy performance
- Secure parking
- Sleeps 4 to 6
Tax regime and obligations
Furnished holiday lets fall under BIC, the French tax category for industrial and commercial profits. The actual-expenses regime allows depreciation of the property and furniture: in the early years, there is often no tax to pay on rental income. The micro-BIC simplified regime remains simpler but is less advantageous once expenses become significant.
Regulatory requirements include declaration to the town hall, displaying the registration number in listings, collecting tourist tax and complying with co-ownership rules — some regulations prohibit short-term letting.
Delegate property management
Managing a holiday let remotely is possible but demanding: welcoming guests, cleaning between stays, laundry, maintenance and handling disputes. A professional concierge service takes on this workload, improves the property's rating and therefore its ranking on booking platforms.
The cost, generally a percentage of turnover, is almost always offset by increased occupancy and fewer cancellations.