If you are considering investing in property in South of France during 2023 and you want to know what sort of return on investment you can expect, then we have provided some guidance on the type of short and long term rental figures to can expect to earn by renting out your property.

Renting out your property may or may not be the sole factor in your decision to buy property in the South of France, but with rental yields around 7-10% a year, it is not something you should ignore altogether. Whether you decide to rent out your property just to cover you annual property taxes and maintenance cost, or if you decide to go the whole hog and turn your South of France property into a buy-to-let business; the central issue remains - what level of rental income can you expect to earn. 

Rental calculator investment property South France

One important issue to remember when it comes to renting out your property is that occupancy is King! Many people get fixated on the weekly rental price and ignore the fact that this is almost immaterial in the bigger picture. So let's say we value your house to rent at €1500 per week in the high season. You may decide that this is an insult. Fred up the road rents his house out at €2500 a week. You're not going to have that! You will press ahead and advertise your house at €2000. You gain an extra €500 per week.

But the key issue is whether it will rent or not. Every week that your property stands vacant you are losing €1500. If you look at the figures below, you will see that pricing your property at the right level to ensure you get occupancy is the key issue, not the actual weekly rental price.

• €1500 x 8 weeks rental = €12,000
• €2000 x 4 weeks rental = €8,000

The other thing that you have to consider is that the rental market in the South of France has become extremely competitive. Every year an extra 1500 properties are added to the rental stock in the South of France. In any market, the rule of supply and demand applies. Rising housing stock and stable demand equals at best, static prices. Also, if you are new on the market, you have no experience of renting your house. You have no track record in terms of customer reviews. Fred may well be earning €2500 per week, but he also probably has 10 years worth of customer reviews logged into TripAdvisor, AirBnB or HomeAway. 

The other thing that I always tell clients to do is to compare their own property not just with higher earning properties, but also to look at properties in the bracket below. I recently had to value an apartment in Marseillan. The owner wanted to receive €1800 a week in the high season. The apartment was lovely inside, but it had no outdoor space and you could just about see the sea if you crooked your neck. The owners comparison was a high end apartment complex directly on the sea front with a nice sized balcony and a roof terrace. What I advised him to do was to look at the market below his property. In Marseillan it is possible to rent a 3 bedroom house with roof terrace for €700 per week. The interior is old but comfortable. How could he justify the extra price difference of €1100 per week. A potential client could stay in the townhouse, eat out at restaurants every single night and still be in profit by the end of the week.

So my first bit of advice when calculating your potential rental income is to put sound business economics before vanity.

South France Investment property calculator

So, down to the central issue. What will your property be worth in terms of rental income. As a rough rule of thumb, these are some fundamentals when it comes to calculating rental income on properties in South France:

• Every 10 kms you travel away from the beach you lose €100-200 per week in high season
• A private pool plus 4 bedrooms and within 25 kms of the coast you are virtually guaranteed 8 weeks high season rentals and 4 weeks June or September rentals
• A private pool adds between €500-€700 per week to the value
• A shared pool adds between €200-€300 per week to the value
• A roof terrace or balcony increases rentability, but not necessarily the weekly value. What it does do however is increase your occupancy level
• If you property has not outdoor space, it simply will not rent (unless it is walking distance to the beach)
• Your weekly price in high season is usually what you can expect to earn per month for long term winter rentals

Village house - no outdoor space

A village house with no outdoor space may rent out in popular towns such as Uzes, Pezenas, Sommieres, Carcassonne, Marseillan. But you are going to struggle to rent it out in non-tourist villages.

• A 1 bedroom property will receive €350-400 per week in high season and €500 per month + bills over the winter period
• A 2 bedroom property will potentially receive €500 per week in high season and €600 per month + bills in the off season.

Potential rental income

1 bed property: 3 weeks summer rentals + 4 months winter rentals = €3800. If you have purchased the property for around €60,000 and your annual maintenance costs and taxes are around €1500, this will provide you with a net rental yield of 4%.

2 bed property: 4 weeks summer rentals + 6 months winter rentals = €5,000. If you have purchased the property for around €85,000 and your annual maintenance costs and taxes are around €2000, this will provide you with a net rental yield of 4%. 

Village house - with roof terrace

A village house with a roof terrace will be attractive for rentals. In populare towns by the coast or in tourist centres such as Uzes, Pezenas, Sommieres, Carcassonne, Marseillan you should expect at least 8 weeks rentals during the 14 week season. The house will also prove popular for longer term rentals.

• A 2 bedroom property will potentially receive €700 per week in high season, €550 per week in June and September. Monthly rentals should be around €650-€750 per month + bills.
• A 3 bedroom property will receive €800-€950 per week in high season, €650 per week in June and September. Monthly rentals should be around €750-€900 per month + bills.

Potential rental income

2 bed property: 6 weeks high season rentals + 2 weeks in June/September + 6 months winter rentals = €9,200. If you have purchased the property for around €125,000 and your annual maintenance costs and taxes are around €2000, this will provide you with a net rental yield of 6%. 

3 bed property: 6 weeks high season rentals + 2 weeks in June/September + 6 months winter rentals = €10,600. If you have purchased the property for around €150,000 and your annual maintenance costs and taxes are around €2500, this will provide you with a net rental yield of 5%.

3 bed Villa/House - no pool

A 3 bed villa or substantial village house with character will attract some for rentals, but it runs into some issues. Potential buyers will either trade-up (for an extra €500 they can get a villa with a private pool) or trade down (for €800 I can rent a town house with a terrace). Again, if the property is by the coast or in one of the tourist towns it will rent for sure, but the little villages inland will prove much more difficult. However, where these properties do come into their own is for long term rentals. In this segment, people want the space, especially outdoor space and private parking. So in a way it is difficult to value

• A 3 bedroom property will receive €1000-€1200 per week in high season, €700 per week in June and September. Monthly rentals should be around €850-€1000 per month + bills.

Potential rental income

3 bed property: 5 weeks high season rentals + 2 weeks in June/September + 8 months winter rentals = €14,400. If you have purchased the property for around €250,000 and your annual maintenance costs and taxes are around €2000, this will provide you with a net rental yield of 5%. 

Villa with pool

An attractive villa with pool should expect at least 12 weeks rentals during the 14 week summer season. The house will also prove popular for longer term rentals, but there is often a reduced market for 4 bedroom properties. It is strange, but the 3 bedroom villa may prove more popular. However, with the 3 bed villa you may reduce your opportuity for summer rentals. A 4 bed villa allows 2 familes to share the villa for a cost-effective 2 week holiday. A 3 bed villa will just be for 1 family. It will still rent, but you may have to work harder to get the full 12 weeks in the summer

• A 4 bedroom property will potentially receive €2250 per week in high season, €1750 per week in June and September. Monthly rentals should be around €1200-€1400 per month + bills.
• A 3 bedroom property will receive €1850 per week in high season, €1500 per week in June and September. Monthly rentals should be around €1000 per month + bills.

Potential rental income

4 bed villa: 8 weeks high season rentals + 4 weeks in June/September + 3 months winter rentals = €27,600. If you have purchased the property for around €350,000 and your annual maintenance costs and taxes are around €3500, this will provide you with a net rental yield of 7%. 

3 bed villa: 7 weeks high season rentals + 2 weeks in June/September + 5 months winter rentals = €20,600. If you have purchased the property for around €300,000 and your annual maintenance costs and taxes are around €3000, this will provide you with a net rental yield of 6%.

Investment property calculator

I have to say that the figures above should be used as a guide. Many factors will affect the valuation such as interior decoration, availability of UK TV satellite channels, WiFi and the local facilities such as restaurants, boulangerie, shops, etc. If you have a project in mind and you would like us to provide you with a realistic calculation of your potential rental income, then please give us a call on +33 6 95 00 28 44 or email us at Long term rentals in France. We will be happy to help you.

Further information about where to buy in South France (Best Places to buy an investment property) and How to buy an investment property (Investing in property in France) can be found by following these links. For information about a tax efficient vehicle for operating a rental property in France, please read Renting out furnished property in France.