Which tenancy agreement should you choose to let your property?

Letting a property begins with a decision that shapes everything else: the choice of tenancy agreement. This contract determines the length of the commitment, the conditions for bringing it to an end, the amount of the security deposit, the profile of the applicants and, ultimately, both the return on your investment and your peace of mind. The very same flat in central Nice can be let in four quite different ways.

The Nice market makes this question particularly tangible: the city combines a large student population, a steady flow of professional mobility and a pronounced seasonality. These are distinct sources of demand, and no single contract answers them all. Cabinet Immobilier Nice sets out the main residential tenancies and the criteria that should guide your choice.

Four contracts cover the essentials of letting a property for residential use. They differ first and foremost in the length of the commitment and in whether or not furniture is provided allowing the tenant to move in straight away.

Bail nu (location vide)

The unfurnished tenancy: the property is let without furniture. The term is 3 years where the landlord is an individual, and 6 years where the landlord is a legal entity. The security deposit is capped at 1 month of rent excluding service charges. This is the classic long-term letting agreement.

Bail meublé

The furnished tenancy: the property is let with furniture sufficient for the tenant to live there immediately, meeting a list of minimum items set out in the regulations. The term is 1 year and the security deposit may reach 2 months of rent excluding service charges. The tenant benefits from a notice period of 1 month.

Bail étudiant

The student tenancy, a variant of the furnished tenancy intended for a student tenant, with the term reduced to 9 months. The property must likewise be furnished. This format follows the rhythm of the academic year and applies above all to studios and one-bedroom flats close to the campuses and the tramway lines.

Bail mobilité

The mobility lease: a short-term, non-renewable furnished contract reserved for tenants in a situation of mobility, such as vocational training, higher education, an internship, an apprenticeship, a temporary assignment or a job transfer. It follows its own rules, notably as regards its term and the security deposit, which should be checked before it is offered.

The unfurnished let remains the benchmark arrangement for a landlord seeking regularity. A commitment of 3 years, extended to 6 years where the landlord is a company, sharply limits tenant turnover: fewer refurbishments, less vacancy, less time spent finding applicants. The applicants who come forward are generally people settling in Nice for the long term.

• Lighter management, with few changes of tenant.
• No furniture to buy, insure or replace.
• A rent generally lower than that of an equivalent furnished property, but steadier.
• Less flexibility in recovering the property: the grounds for giving notice to the tenant are tightly regulated.
• A security deposit capped at 1 month of rent excluding service charges.

The point requiring attention is the notice period. In an unfurnished let, the tenant's notice period is in principle longer than in a furnished one, but it may be shortened in a number of situations, notably in areas where the rental market is considered to be under strain. As Nice is among the conurbations where demand is high, it is wiser to have the regime applicable to your property checked case by case rather than reasoning by analogy.

Furnished letting appeals to more and more Nice landlords, and for good reason. It allows you to command a higher rent than a comparable unfurnished property, to recover the use of the property more quickly thanks to a commitment of 1 year, and to hold a security deposit of up to 2 months of rent excluding service charges. In return, the tenant may leave on a notice period of 1 month: turnover is more frequent and management more hands-on.

• Complete furnishing is mandatory: the property must allow the tenant to live there from the day they move in, according to a list of items set out in the regulations.
• A detailed inventory of the furniture, annexed to the tenancy agreement, is every bit as important as the schedule of condition itself.
• Sustained demand in Nice, where professionals on assignment, young executives and students are all looking for move-in-ready homes.
• Specific tax treatment and reporting obligations, to be reviewed with your adviser.
• More frequent replacement of equipment, to be anticipated in your budget.

The bail étudiant (student tenancy)

With its universities and specialist schools, Nice concentrates substantial student demand, compressed between the spring and the start of term in September. The student tenancy, with a term of 9 months, matches that calendar: it applies to a furnished property and suits studios and small floor areas that are well served by public transport. It does, however, mean accepting possible vacancy over the summer, or arranging a summer re-letting, which then falls under a different framework.

The bail mobilité (mobility lease)

The mobility lease, for its part, answers temporary professional stays: an assignment, a training course, an internship, a transfer. It may only be offered to tenants who meet one of the conditions laid down by law, which means obtaining the corresponding supporting documents. Being non-renewable, it offers short-term visibility, which is valuable when you wish to recover the property on a known date. Its own rules, notably on the term and the security deposit, must be checked before the contract is drawn up.

Letting by the night or by the week does not fall under the residential tenancies described above, but under a separate regime, accompanied by local rules specific to the City of Nice and, where applicable, by restrictions imposed by the building's co-ownership rules. The potential is real in a city with a long season, but the applicable framework is evolving and must be verified before any listing goes live. We advise owners who wish to weigh conventional letting against short-term holiday letting.

No tenancy is inherently superior to another. The right contract is the one that matches your property, your time horizon and your availability. In practice, we systematically review the following points with our landlord clients.

• Your time horizon: do you want to recover the property in the medium term, or place it in a long-term let?
• The property itself: a small central flat close to the tramway is not let in the same way as a family three-room apartment in Cimiez.
• Your availability: furnished properties and short tenancies generate more turnover, and therefore more management time.
• The calendar: student demand peaks before the start of the academic year, whereas professional relocations are spread across the year.
• The furnishing budget, to be weighed against the additional rent you can expect.
• Your tax and wealth planning position, which on its own may determine the choice.

Choosing the tenancy is only the first step. Next come the selection of applicants, drafting a compliant contract, the schedule of condition and the inventory, collecting the rent, reconciling service charges, technical follow-up and managing departures. The property management department of Cabinet Immobilier Nice takes care of all of these tasks, from our offices at 8 avenue Auber. We advise you on the most suitable tenancy, we draft it and we look after your property day to day.

Are you weighing an unfurnished let against a furnished one, or looking to put an existing tenancy on a secure footing? Our teams will review your situation and support you through to signature. Let us talk about your letting project in Nice.

This article is provided for general information only and does not constitute legal or tax advice. Rental regulations change and involve many particular cases: this article is no substitute for the opinion of a professional, whom we encourage you to consult before taking any decision.