In a context where the health crisis has greatly increased the difficulties of certain tenants in meeting their deadlines, Masteos, a start-up specializing in turnkey rental investment and Unkle, a fintech which vouches for tenants and protects owners against unpaid bills, have joined forces to determine the cities in France that have the best balance between rental profitability and the risk of unpaid bills in 2021.
Return / risk ratio
Even if taking out unpaid rent insurance remains the best way to minimize the risks, it can be important to take into account the loss rate, that is to say the situations where the owner has initiated proceedings before the owners. courts, before choosing the cities where it is interesting to invest. The loss rate used in this study was calculated for each French department, on the basis of 15,000 Unkle customers.
« The challenge is to find a city that maximizes financial potential while minimizing rental risk. We note that investors tend to take only one of these two criteria into account. However, it is the optimization of the risk / return ratio that really matters », Analyzes Thierry Vignal, President and co-founder of Masteos.
New Aquitaine
This study recognizes Nouvelle-Aquitaine as the region in France that offers the best risk-return ratio. It has no less than seven cities with high investment potential, including Bergerac, Cognac and Niort, which have gross rental profitability above 8% with a loss rate below 1% (barely 0.62% for Bergerac) . Poitiers is perceived as the safest city with a loss rate of only 0.45% for a gross rental profitability of 6.85%. A little further on, we find Bordeaux and Talence, which show a risk of default of 0.96% for rental returns of 4.25% and 4.86%, and finally Saintes, which has a loss rate of 1 , 10% for a yield of 7.05%.
Strong profitability in Roubaix
In the rest of France, Roubaix and Arras stand out as the cities with the most interesting risk-return ratio. Indeed, with a rental profitability of 9.06% (for a loss rate of 1.68%) Roubaix is positioned as the most profitable city in France. With a rate of return of 6.55% for a default risk of 1.11%, Arras also has an excellent profile.
Six other cities offer a risk-return ratio which, although less advantageous, remains very positive. This is particularly the case of Angers, with a rental profitability of 5.36% and a loss rate of 0.71%, of Créteil, (5.48% and 0.97%), of Marseille (5.66 % and 1.64%), Lille (5.28% and 1.68%) and Nantes (4.51% and 1.40%).
Beware, on the other hand, of Vénissieux and Aubervilliers which can provide a generous return of around 6% but are very exposed to unpaid debts, with respective loss rates of 1.89% and 3.23%.
Default rate
The online real estate agency dedicated to rental management Imodirect is currently observing a stabilization of around 20% of the first reminders required to collect rents, against 10% or even less, before the health crisis. According to its manager, Arnaud Hacquart, “ the rate of unpaid rent for more than one month’s rent has stabilized since the end of 2020 between 1.2% and 2%, against less than 1% previously ».
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