It is important to know that in Paris, rent control applies and it concerns any rental in a primary residence. This legal device has been deployed since July 1, 2019. A particularly impactful measure due to dense population and to be taken into consideration when estimating rents in Paris.
But as a landlord, you have many questions and you want to determine the amount of your rent per month. Whether for a house or a studio apartment, it is necessary to determine an amount per month corresponding to the reference rent. But often, the framework of the rents in Paris and the calculation can prove to be a complex subject if you are beginner.
The estimation of the average rent in Paris according to seloger.com
Of course, it is imperative to take into account the average affordable price of a rental in Paris to maximize your income. According to the very serious website seloger.com, the lowest rental price in Paris is 28 € per square meter. Conversely, the highest price is 38 € per square meter. On average, however, you should expect to pay around €32 per square meter for a rental property in the Paris region.
Nevertheless, there are some disparities to consider. The average rent in Paris for an unfurnished apartment in Paris is around 1599 €. This is slightly lower than the average rent for a furnished two bedroom apartment at 1725 €.
Other characteristics are to be taken into consideration, namely the type of apartment. If it has only one room, the average price per square meter of this type of unfurnished property is 35.96 € per square meter.
For a two-room apartment, the average rent rises to 31.13 euros per square meter in western europe. For a three-room apartment, the rent per square meter is around 29.83. Finally, you should consider 30.13 € per square meter for an apartment with four rooms.
Although these are simple estimates, they are particularly valuable in determining the amount of your average monthly rent in Paris France. Other characteristics are taken into consideration such as the fact that recent work may have been done, condominium fees, income tax, the cost of living, the average salary, cultural activities, the view of a Parisian monument, the proximity of a public transport and transportation cost, grocery stores and shops, any parking spot, four estimated monthly costs of the parisian lifestyle and prices in Paris.
For more upscale apartments, additional services may be included such as the presence of a Jacuzzi or a balcony.
If you want to estimate the average monthly rent of a house living in Paris, you should know that it will be 5638 € per year for the rent of a furnished house and 4236 € for the rent of a non-furnished house.
Why estimate the rent in Paris ?
Before renting out your apartment or house, it is in your best interest to do so at the right price. Therefore, a first rental estimate is absolutely essential by taking note the market of real estate prices. If it is your property, you may naturally tend to overestimate its price. If the rental price is not in line with the market, you may find it very difficult to find a tenant.
Learning how to make a rental estimate is absolutely essential and you must first base yourself on the reference rent per square meter (refer to the explanations on the site: https://www.service-public.fr/particuliers/vosdroits/F13723 ). But this does not exempt you from doing a manual search.
Once you know the location of your property to rent, you must take note of the existing ads near you. This way, you will be able to determine the average rental price and use it to determine the amount of your rent. However, you should always be realistic and compare similar properties in terms of size and services.
Why work with an agency specializing in property rentals in Paris?
UpperKey is a recognized agency for property management in a big city like Paris and in many other French major cities. Indeed, the estimation of a furnished or unfurnished rent can seem like a real headache when you are not in the business.
Although it is always possible to do this on your own, you risk losing a lot of time if you don't use the right tools. In addition, you may determine an incorrect rent amount, i.e., too low, which could have a negative impact on your return on investment.
Moreover, if you decide to manage the tenant yourself, a lot of time and energy will be required. Once the amount of the rent is determined, you will have to ensure the publication of your advertisement and answer the numerous requests. You must manage the various administrative formalities and of course ensure the inventory of fixtures at the time of the arrival and the time of the departure of your tenant.
In the meantime, the latter may also ask you for various administrative or technical procedures. In the event of unpaid rent, you may encounter many financial difficulties. So to avoid these various setbacks, you have many options, but no one is better than UpperKey. The agency takes care of everything, i.e., estimating the amount of rent, while taking into consideration the Paris region's rent framework.
But above all, you have the guarantee to get your income in a regular way, without worrying about your tenant.
Using a rent simulator
On the Internet, you will find many sites that provide you with a rent simulator in the most expensive city, Paris. Generally, this type of tool has been developed by specific engineers with an algorithm fed by hundreds of apartments in the French capital. These are public data that have been directly extracted from real estate ads.
Their use remains particularly simple, because it is enough to indicate the address of your real estate. You also indicate whether it is a furnished or unfurnished property, its surface area, the number of rooms, the year of construction, the floor of the property, whether you have a cellar, a terrace or a garage.
According to the different information you have entered, you will obtain the rental value of your property. But once again, this is an indicative value and not a reality. We therefore warn you about the results you can obtain and we advise you once again to go through professionals to determine the precise amount of rent.
Take into consideration the rent control if living in Paris
Rent controlliving in Paris is a system that has been put in place by the government to define a maximum value per square meter. The rent control is then defined according to the geographical area in which the property is located, its date of construction, the type of rental and the number of rooms.
Consequently, it is imperative that the lessor claim a rent within the limit of a 20% increase in the rent and a 30% reduction in relation to the reference rent.
It is absolutely essential to respect the rules defined concerning the rent framework. Otherwise, you expose yourself to particularly important sanctions, i.e. 5000 € of compensation for a physical lessor and 15 000 € concerning a moral lessor.
However, if you are making a rental investment, you certainly wish to obtain a return on your investment quickly while being serene. The best solution is to work directly with a specialized agency such as UpperKey, which will ensure that the legislation in force is scrupulously respected, whether in the short or long term.