Landlords are aware of the importance of renovating their properties

At a time when the least energy-efficient homes are gradually being phased out of the rental market in accordance with the Climate and Resilience Act, Franfinance conducted an in-depth survey to better understand the behavior of landlords.
 

The 2024 Franfinance Barometer on Housing and Energy-Efficiency Renovations, conducted in partnership with Viavoice, provides an overview of the current situation. Faced with the ban on renting out energy-inefficient properties (categories F and G on the Energy Performance Certificate), landlords are aware of the importance of renovating their properties. However, as with owner-occupiers, carrying out such work remains complicated, particularly in terms of financing.
 

Landlords Who Are Concerned and Aware of the Property and Financial Implications
79% of landlords are very concerned about energy efficiency, but 37% of them are unaware of their Energy Performance Certificate. Aware of these issues, they undertake renovations primarily because it is an important factor for their tenants (58%) and for resale or rental (48%). Their projects are also driven by a desire to increase the value of their property (48%).
 

Mostly major renovation projects, but with widely varying budgets
Landlords are primarily interested in renovating their bathrooms and kitchens (23%) as well as replacing their doors and windows (21%). The average budget for these projects is 13,196 euros, but the amounts vary widely: nearly half (46%) plan to spend less than 4,000 euros.
 

Well-Known Financial Assistance, but Complex Application Processes
Existing financial assistance programs, such as MaPrimeRenov’ (86%) and the zero-interest eco-loan (83%), are well known, but few property owners believe they qualify for them (36%). Furthermore, 70% of them believe the application process is complex. Only 56% of those wishing to carry out renovations plan to apply for financial assistance.
 

Financing remains a major issue
Only 31% of landlords have the necessary budget to carry out their renovation projects. Faced with this challenge, 38% are considering a loan as a financing solution, sometimes in addition to their savings. A majority have already used credit solutions, particularly through their bank (59%) or a specialized financing institution (41%). The interest rate and the overall cost of the loan are the main criteria for choosing a loan (64% and 60%, respectively), ahead of the repayment term (32%).