Rental yield, taxation, freeing up capital and management demands. How to decide between selling now and keeping the property to let.
Before the figures, a simple question. Do you need the capital now, for another purchase or a life project, or are you after a regular income and a long-term investment? Selling frees up capital straight away, letting keeps it working in bricks and mortar while producing a yield. Both answers are valid, they simply meet different needs.
To compare, bring the annual net rent back to the value of the property. A flat worth one million that lets for thirty thousand francs a year, once charges are deducted, returns around three per cent gross. From that figure, take off the non-recoverable charges, upkeep, provisions for works and the tax on rental income, which is added to your taxable income.
The real net yield is often lower than people imagine. That said, the property carries on gaining or losing value in parallel, which is part of the calculation.
Letting means becoming a landlord. Finding a tenant, the inventory of fixtures, repairs, dealing with the unexpected and sometimes disputes. You can hand it over to a managing agent for a percentage of the rent, but the final responsibility stays with you. This is not passive income, it is a small business.
On tax, the imputed rental value of the property is added to your income if you live in it, and the rent received if you let it. Mortgage interest and certain costs remain deductible. The equation depends heavily on your personal situation.
The right decision starts with two reliable numbers, the current sale value of your property and the market rent it could reach. With those two markers in hand, the comparison becomes concrete. An online estimate gives you the first in two minutes, free of charge, and lays the groundwork for a clear-headed choice.