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Expatriation raises many practical questions, and managing your primary residence is among the most important. Sell, rent, or keep your property? This decision, which often commits you for several years, deserves a thorough analysis of the different options and their financial and administrative implications.
Renting out your property
If you are moving abroad for an extended period, renting out your property can be an excellent way to generate income while keeping your investment. It can cover all or part of your expenses (mortgage, property tax, maintenance) and prevent an empty home from deteriorating.
Which type of rental should you choose?
Before renting out your primary residence, it’s essential to choose the rental model best suited to your situation:
- Long-term rental: Renting year-round to a stable tenant guarantees regular income and minimizes administrative hassle while you are away.
- Furnished rental: Offering more favorable tax treatment and higher profitability, furnished rentals are ideal if you want to maintain flexibility.
- Short-term rental: Renting on a short-term basis via platforms such as Airbnb can be attractive in tourist areas but requires more active management.
How to manage a rental from abroad?
Managing a property from overseas can be challenging, especially when unexpected situations arise (late payments, maintenance, tenant turnover). You can delegate this to a property management agency, which will take care of finding tenants, drafting the lease, collecting rent, overseeing repairs, and more. This comes at a cost (around 5–10% of rental income) but ensures peace of mind.
Selling your property before moving abroad
For long-term expatriations without plans to return in the short or medium term, selling your property can be a wise choice.
Why sell before leaving?
Several reasons may lead you to sell before an expatriation. Selling your property allows you to free up capital to fund your move abroad or invest in a new property at your destination.
It is also a way to avoid the constraints of property management, possible maintenance work, and the administrative obligations of owning a home in France. Moreover, owning a property in France can have tax implications depending on the host country and its regulations. By selling, you simplify your assets and avoid potential taxes on rental income or property ownership.
Key steps to selling before departure
A property sale doesn’t happen overnight, so it’s essential to plan ahead. Should you sell before or after leaving? Ideally, the sale should be completed before departure to avoid managing the transaction remotely. However, if time is short, you can entrust the sale to an agency that will handle viewings and negotiations with potential buyers. Another option is granting power of attorney to a notary or trusted person to sign the deed of sale in your absence.
Keeping your home during an expatriation
Rather than selling or renting, some expatriates prefer to keep their property unoccupied during their stay abroad.
Why keep your property without renting it?
The main reason is wanting to find it exactly as it was upon your return. For those planning only a temporary expatriation, avoiding rental preserves the home without the hassle of property management or the risk of it not being available upon return. This choice can also be driven by sentimental attachment to a home you wish to live in again.
Financial and administrative implications
Keeping a property unoccupied still incurs costs that should be anticipated. Even without a tenant, some expenses remain unavoidable: property tax, condominium fees, home insurance, and routine maintenance. If you have an ongoing mortgage, it’s important to ensure your finances remain balanced without rental income.
From an administrative perspective, it is recommended to appoint a trusted person to check on the property if needed. Taking out specific insurance for unoccupied homes can also be a wise precaution to protect against potential damage or loss.