Buying an apartment to rent can seem relatively simple: you just need to find a property that is well located, check its potential yield and ensure that the rental market is dynamic. However, some investors discover after signing that their project faces obstacles that they had not anticipated, such as prohibited seasonal rentals, costly work to come or even restrictions on use included in the co-ownership regulations.
These unpleasant surprises are often hidden in documents that buyers consult too quickly before committing. “People look at the price per square meter, the amount of charges or the DPEbut they often neglect the co-ownership regulations. Gold certain restrictions on use may call into question the entire investment project”argues, initially, Maître Romain Rossi-Landi, lawyer specializing in real estate law.
Rental investment: are the co-ownership regulations the first document to analyze?
Absolutely. For many real estate professionals, it is even the most important document to examine before any acquisition. The co-ownership regulations sets the operating rules of the building, but also the authorized or prohibited uses. However, certain clauses may be incompatible with the planned investment strategy. “In all co-ownership regulations, there is a chapter devoted to occupation of lots. This is where we find possible restrictions of use »underlines Maître Rossi-Landi.
Attention should be focused in particular on:
- restrictions relating to furnished tourist rentals;
- authorized commercial or professional activities;
- bourgeois housing clauses;
- limitations related to short-term rentals;
- the rules concerning the division or transformation of housing.
Can you buy a property without being able to rent it?
Yes, and this type of situation actually exists. The lawyer cites the case of clients who bought an apartment in a condominium without precisely verifying the legal destination of the lot. A few months after the acquisition, they received a formal notice from the co-ownership. The reason? The lot was not designated as housing but as a “Hobby Room”, that is to say a room intended for leisure activities. “They were thinking of buying residential premises but the designation of the lot was not that clear”he explains. Even if this case was ultimately able to be legally defended, the example illustrates a risk that is often underestimated: verifying that the destination of the lot is compatible with the intended use.
Should Airbnb investors be extra vigilant?
Yes, more than ever. Since the adoption of the Le Meur lawmany co-ownerships seek to regulate or limit Airbnb-type tourist rentals. Some even go so far as to consider banning them. “We are seeing more and more clauses, particularly in the new co-ownership regulations, which limit or prohibit seasonal rental”observes Maître Rossi-Landi. But the situation remains complex. Not all co-ownerships can freely prohibit this activity.
It all depends on the destination of the building. A exclusive bourgeois housing clause generally constitutes a major warning sign. Conversely, when a building already hosts businesses or mixed activities, the possibilities for prohibition are often more limited. Before any investment intended for tourist rental, an in-depth analysis of the co-ownership regulations therefore appears essential.
Why do you have to read several years of general meeting minutes?
Many buyers simply consult the latest general meeting minutes. An error according to specialists. Minutes from previous years often make it possible to identify recurring problems which have not yet given rise to a work vote.
“There may be repeated discussions about infiltrations, a degraded facade or other disorders that have not yet been addressed. These are signals that must be questioned”estimates the lawyer. An aging roof, a renovation that has been discussed for several years or elevators in poor condition can ultimately represent several thousand euros in fundraising for each co-owner.
How to identify a financially fragile co-ownership?
The financial state of the co-ownership is another key element. Significant unpaid debts, recurring legal proceedings or even the appointment of a provisional administrator must immediately alert an investor. “When there is a lot of legal proceedings and a lot of unpaid debtsyou absolutely must flee”warns Master Rossi-Landi.
A weakened co-ownership can lead to:
- a significant increase in expenses;
- work postponed due to lack of resources;
- progressive deterioration of the building;
- difficulties in reselling the property.
The amount of the works fund and the rate of arrears therefore deserve particular attention.
Can annexes such as cellars or parking lots hold surprises?
Yes, and these errors are more common than you think. The lawyer indicates that he has already handled several cases in which the owners discovered, sometimes at the time of resale, that the cellar or parking space had been used for years did not correspond to that appearing in the documents. These situations often result from old errors, inversions between co-owners or inconsistencies between the plans and the reality on the ground. Before purchasing, it is therefore recommended to physically check the annexes mentioned in the deed of sale.
Can tax advantages make us forget the essentials?
This is one of the most classic traps. Maître Rossi-Landi evokes the case of an investor seduced by a tax exemption operation sold as particularly attractive. Focused on the promised tax cut, the buyer had not even visited the accommodation before purchasing. The consequence? A property that is difficult to rent, disappointing profitability and the loss of the hoped-for tax advantage. “Before thinking about the tax advantage, you must never forget that you are first buying real estate”insists the lawyer.
In other words, the quality of the location, the rental demand, the condition of the building and legal constraints must always take precedence over tax promises alone.
