Managing a French house share from a distance is workable, provided you accept that management costs are structurally higher than for a standard rental: more tenants, more move-ins and move-outs, more arbitration. The decision that determines everything is taken before the first tenant arrives — a single joint lease, or individual leases.
Colocation or co-living: two words, two realities
Colocation — the French house share — has a legal definition. Article 8-1 of act no. 89-462 of 6 July 1989 defines it as the letting of one dwelling to several tenants making it their main residence, under a single contract or several. Co-living has no French legal definition at all: it is a commercial positioning covering very different contractual arrangements.
| Colocation | Co-living | |
|---|---|---|
| Legal status | Defined by article 8-1 of the 1989 act | No status of its own: depends on the contract actually signed |
| Contract | Single joint lease or individual leases | Lease, service agreement, or serviced residence depending on the case |
| Services | None as a rule | Cleaning of common areas, internet, sometimes laundry and events |
| Rent positioning | Standard rental market | A premium claimed for the services |
| Management load | Moderate to heavy | Heavy: operations resemble light hospitality |
This distinction is not semantics. A property marketed as co-living but let under residential leases remains subject to the 1989 act: notice periods, rent rules, fitness standards, all of it applies. The commercial name does not change the regime.
Joint lease or individual leases: the decision that sets everything
This is the only structural decision in the file. It fixes who carries arrears risk, who carries vacancy risk, and how much time you will spend on this property every month for years.
| Criterion | Single lease with joint liability | Individual leases per room |
|---|---|---|
| Arrears risk | Carried by the group: each is liable for the whole | Carried by the owner, room by room |
| Vacancy risk on one room | Carried by the remaining tenants | Carried by the owner |
| Finding the replacement | In practice done by the tenants | Down to the owner |
| Management load | Low: one contract, one counterparty | High: as many leases, inventories and receipts as there are rooms |
| Achievable rent | The property's overall rent | Usually higher in aggregate, room by room |
| Minimum private area | No requirement specific to house shares | 9 sq m and 20 cu m per private space |
| Appeal to tenants | Lower: they are liable for the others | Higher: they are liable only for themselves |
With individual leases, article 8-1 requires each private space to be at least 9 sq m and 20 cu m. This is a design constraint: it rules out slicing a large flat into an arbitrary number of rooms, and it is checked before purchase, not after the works.
What management actually costs
When delegated, house-share management commonly runs between 4% and 10% of rents including tax depending on scope, against 6% to 8% for standard letting management. Market survey of August 2026: these fees are not regulated and vary sharply depending on whether tenant sourcing is included or billed separately.
- Rent invoicing, collection, chasing and service-charge reconciliation.
- Sourcing and screening tenants, viewings, assembling application files.
- Drafting leases and amendments at every arrival and departure.
- Inventories on entry and exit, room by room where leases are individual.
- Coordinating trade callouts and arbitrating disputes between tenants.
- Regulatory follow-up: surveys, fitness standards, annual rent review.
One point deserves stating plainly, because it is often conflated. Fees charged to the tenant for arranging the letting are capped by decree no. 2014-890 at €12, €10 or €8 per square metre depending on the zone, plus €3 per square metre for the inventory, with the amounts revalued each year by ministerial order. Management fees charged to the owner are not capped. They are two different lines, and only the first is regulated.
The five items that destroy returns
1. Turnover
This is the first item by a distance. Every departure triggers a full chain: exit inventory, making good, advertising, viewings, screening, lease, entry inventory. In a house share that chain fires as many times as there are rooms, and more often than in standard letting because the tenant pool is structurally more mobile. A four-bedroom property with an average two-year stay means two re-lettings a year, permanently in progress.
2. Vacancy on a single room
With individual leases, one empty room in a four-room property costs 25% of that property's income for the whole gap. The calculation runs in days, not months: three weeks' vacancy on a €450 room, four times a year, costs the equivalent of a month and a half of annual rent. That figure decides whether a management mandate is worth it — not the fee rate.
3. Arbitration between tenants
This is the cost no spreadsheet models. Noise, cleanliness of shared areas, guests, splitting bills, bathroom scheduling: these reach the owner as soon as they fail to resolve themselves. From a distance they resolve badly, late, and by phone. House rules annexed to the lease, specific on the known friction points, take an hour to write and prevent most of the calls.
4. Utilities and service charges
In a furnished house share, charges are usually a fixed monthly amount: convenient for everyone, except when that amount was set once and never revisited. Communal heating, four occupants and a hard winter are enough to turn a comfortable provision into a straight loss. The fixed amount is revised at each renewal, on last year's actual consumption, not on the original estimate.
5. Damage
Under a joint lease there is a single deposit: working out who broke what becomes a collective negotiation at the moment of return. Under individual leases, common areas belong to no one in particular, and damage occurring there is the hardest to attribute. A detailed, photographed inventory, redone at every rotation, is the only document that survives a challenge.
Screening tenants
- 01Define the profile on objective, verifiable criteria: solvency, intended length of stay, regularity of income.
- 02Request only the permitted documents. The list of documents that may be demanded is set by the 1989 act; asking for anything else is unlawful, and refusing is the applicant's right.
- 03Assess solvency on an explicit ratio applied identically to everyone, rather than on an impression.
- 04Hold viewings with the current tenants where there are any. They are the ones who will live with the applicant, and their view is the best predictor of stability you have.
- 05Align lease end dates where possible, to concentrate rotations in a period of strong demand rather than absorbing them all year round.
Tax: LMNP, micro-BIC and the capital gains trap
A furnished house share falls under the non-professional furnished lettings regime (LMNP) as long as the professional thresholds are not crossed. Income is taxed as business income (BIC), under one of two regimes.
| Regime | Principle | When it is more favourable |
|---|---|---|
| Micro-BIC | A flat 50% allowance, up to €77,700 of annual receipts for long-term furnished letting | Low real costs, property owned outright, few works |
| Actual expenses | Deduction of real costs plus depreciation of the property and the furniture | Mortgage in place, works, high service charges — the common case in house shares |
Moving to professional status (LMP) requires two cumulative conditions under article 155 IV of the French tax code: more than €23,000 of annual receipts for the tax household, and receipts exceeding that household's other earned income. One condition alone is not enough, which is widely misunderstood and rarely anticipated.
House share, standard letting, short-term: the comparison
The assumptions below are set to compare mechanics on the same notional three-bedroom flat. They forecast nothing for any market: achievable rent, occupancy and cost levels depend on the town and the property.
| Standard letting | 4-room house share | Short-term rental | |
|---|---|---|---|
| Assumed gross annual receipts | €12,000 | €19,200 | €26,000 |
| Estimated vacancy and arrears | − €600 | − €1,900 | − included in occupancy |
| Operating costs | − €1,200 | − €3,400 | − €7,500 |
| Cost of delegated management | − €840 | − €1,500 | − €3,800 |
| Net before tax, mortgage and works | €9,360 | €12,400 | €14,700 |
| Owner time and mental load | Low | Medium | High |
| Regulatory exposure | Low | Low | High |
The honest reading of this table is not that short-term letting wins. It is that the gap in net income between the three models is far smaller than the gap in gross receipts, and that each additional tier of revenue is bought with management load and regulatory exposure. The house share holds a useful middle position: it captures part of the short-term premium without the regulatory risk, since the Le Meur act does not apply to it.
The cross-border case: Annemasse and the Geneva basin
The French side of the Geneva basin concentrates a particular rental demand, driven by a cross-border labour market: people employed in Switzerland who live in France. That demand has concrete characteristics that change how a house share is structured — though no reliable measure can be published here, for want of an up-to-date and verifiable local statistic.
- Applications come with Swiss employment contracts denominated in Swiss francs. Solvency is therefore assessed on converted income, and a guarantor resident abroad is harder to enforce against than a French one.
- Stays are often tied to the length of an assignment, which pushes towards furnished lettings and short leases — so towards higher turnover than elsewhere.
- Proximity to the tram and the cross-border lines weighs more than floor area in an applicant's choice. An extra square metre rarely compensates for ten extra minutes of commute.
- The notice period depends on whether the municipality is classified as a tight-market zone: one month instead of three. That classification is checked municipality by municipality with the official calculator before drafting the lease; it is not assumed.
Frequently asked questions
A joint lease transfers vacancy and arrears risk to the tenants but makes the property less attractive. Individual leases usually yield more in aggregate and let faster, at the price of much heavier management and an empty-room risk you carry yourself.
Commonly 4% to 10% of rents including tax depending on scope, against 6% to 8% for standard management. Surveyed August 2026. These fees are unregulated, unlike the letting fees charged to tenants, which are capped by decree no. 2014-890.
Where the house share runs on individual leases, article 8-1 of the 1989 act requires at least 9 sq m and 20 cu m per private space. That constraint is verified before purchase or before any division works, not afterwards.
Until a replacement joins the lease, and at the latest six months after his notice period ends. After that, neither he nor his guarantor answers for the rent, and the vacant room becomes your loss.
No. It governs short-term tourist rentals let to transient guests. A house share that is the occupants' main residence falls under the 1989 act, with no registration requirement and no annual night cap.
Sources cited in this article
- Article 8-1 de la loi n° 89-462 du 6 juillet 1989 — colocation
- Décret n° 2015-587 du 29 mai 2015 — contrats types de location et de colocation
- Décret n° 2014-890 du 1er août 2014 — plafonnement des honoraires
- Congé du locataire et durée du préavis — service-public.fr
- Simulateur officiel : votre commune est-elle en zone tendue ?
- Article 155 IV du Code général des impôts — LMNP / LMP
- Loi n° 2025-127 du 14 février 2025, article 84 — amortissements et plus-value
- Location meublée : régimes d'imposition — impots.gouv.fr
This article is reviewed and updated whenever the rules change.
The regulatory and tax information published on this site is provided for general guidance, with its source and date. It does not constitute personalised legal, tax or accounting advice.



