THE RENTAL MANDATE
1. What is a tenancy agreement?
The rental mandate is an agreement between the property owner and a real estate agency, which can be a letting agent or a landlord agent. In particular, it tasks the latter to find a new tenant and take charge of the rental process.
Governed by the Civil Code in Article 1984, this mandate corresponds to a power of attorney by which the owner/landlord gives authority to the professional to act on their behalf (serve as their representative).
In the rental mandate, there are actually two types of agreements:
Governed by the Civil Code in Article 1984, this mandate corresponds to a power of attorney by which the owner/landlord gives authority to the professional to act on their behalf (serve as their representative).
In the rental mandate, there are actually two types of agreements:
- The rental management mandate- Allows the agent to take charge of all the steps related to rental management, including:
- Finding the new tenant
- Drafting and signing the lease
- Carrying out the inventory of fixtures
- Collecting Rent
- Drafting and giving the rental receipts
- Cleaning and maintenance
- The rental mandate - exclusively concerns the search for tenants and the letting of the property. It can be called a listing agreement which lists the terms of the business agreement.
2. What should a tenancy agreement contain?
The rental mandate agreement should include:
- Identities of both parties
- The designation and description of the property
- The various tasks entrusted (precise estimation of the price of rent, taking charge of and terminating the technical diagnostics, dissemination of the advertisement, management & planning of visits, studying the tenant files, drafting of the lease and act of guarantee, carrying out of the inventory of fixtures, etc.)
- The fees and general conditions of the contract
- The registration number of the mandate
- The professional card of the agent
- The number of the professional liability insurance policy
- The financial guarantee of the agent
3. What is the rental management mandate?
There are two types of the standard rental mandate:
- The Simple Rental Mandate Agreement - Rental management can be entrusted to multiple agents. The owner is free to find a tenant on their own too.
- The Exclusive Rental MandateAgreement - The agent is the only one who can find a tenant for the rental property within a period of 3 months after signing. The owner/landlord is prohibited from hiring other professionals and finding a tenant on their own.
What is the Rental Management Mandate Agreement?
In a rental management mandate agreement, the hired real estate agent must take on various tasks in the rental process. They include:
- Estimate the price of rent
- Write the property advertisement
- Organize visits
- Draft the rental contract
- Set up the inventory of fixtures (both entrance and exit inventories)
- Conduct the technical diagnostics
- Manage the rent during the lease
4. What is the tenant search mandate?
The rental mandate consists of an agreement to find a new tenant (or several co-tenants).
The tenant search mandate includes :
The agent will take all the necessary steps to conclude a rental agreement. The owner/landlord also doesn’t have to pay the agent until the lease is signed.
The tenant search mandate includes :
- A first visit to see the property and take photos
- Conducting the mandatory real estate diagnostics
- The drafting of the offer
- Publication and promotion of the property
- Set up prospective tenants' visits to the property
- Drafting the lease
- The inventory of fixtures
The agent will take all the necessary steps to conclude a rental agreement. The owner/landlord also doesn’t have to pay the agent until the lease is signed.
5. How much does a tenancy agreement cost?
The fee for the rental mandate is set according to a percentage of the price of the rent, typically 7% to 8%, plus the VAT (Value-Added Tax).
The rental management fees are part of the expenses deductible from the rental income (furnished or unfurnished) or from the BIC (furnished rental).
> Empty or furnished rental
> Property income: deductible expenses