In rental investment, it is considered that there are 3 main stages: searching for the property, financing, and management.
Step I - The search for the property
The definition of your criteria
A property needing renovation? A property sold rented? Empty? For your children or for profitability? Or both? In which neighborhood? What size? What floor? Financing through credit or with equity?
You understand, there are many questions to ask, and as many answers to the questions as there are investors!
The good news is that there is an answer regardless of your investor profile and your financing capacity!Estimating your financing capacity
Use simulation tools, consult a broker or your bank to get an idea of the amount you can borrow. Keep in mind the amount of equity you are willing to finance directly out of your pocket. And don’t forget that the overall investment envelope does not only include the price of the property! There may be agency fees, broker fees, notary fees, renovation costs, furniture, … or even a few months of rental vacancy at the beginning of your adventure.
The search for the property
If it's an acquisition for rental investment, Beanstock is the platform where you can find your future acquisition. If you are looking for a primary or secondary residence, consult the major platforms (seloger, pap, le bon coin…).
The estimation of work and furniture
Accurately estimating your renovation work is crucial. You can generally use a rule of thumb that your renovations will cost about 250 €/m2 for a simple refresh, 800 €/m2 for a complete renovation (floor, electricity, plumbing, ceiling, windows), and 1,200 €/m2 for a high-standard renovation. You will (and should) refine this estimate after your offer is validated by revisiting your property with a contractor who will provide you with a quote to present to your bank.
The purchase offer
The apartment you visited appealed to you? Let the seller know as soon as possible, who will then select the buyer's file in which they have the most confidence to proceed with the transaction while obtaining the highest price.
Once accepted by the seller, the procedures for drafting the sales agreement can begin. Remember to reassure the seller about your financing capacity.The sales agreement
At the agency or with the notary, the sales agreement (sometimes called "promise to sell") officially and irrevocably commits the seller to sell you the property. Regarding the buyer, they have a period of 10 days from the day after receiving the signed sales agreement by registered mail.
Step II - Finding funding
The credit
A fundamental step that can be stressful for many, which is why some decide to go through a broker. Most banks will wait until the sale agreement has been signed to process your file and will ask you for a well-structured file (latest pay slips, tax notices, bank statements…). Anticipate this step as much as possible to ensure you get a response as quickly as possible and consequently, less uncertainty!
Step III - The management of the property
The signature of the authentic deed
The big day has arrived. You have received and signed your loan offer, and you go to the notary to sign the authentic deed of sale that will seal your new status as a homeowner. As of this date, your property must be insured by a Non-Occupant Homeowner's insurance, and you will be liable for co-ownership charges and fees.
The layout
From the day of the signing, the work can begin. Every day counts now, as your accommodation is vacant while waiting for the completion of the work and the search for a tenant! If you do not know a craftsman or have doubts about the ideal plan, seek assistance.
The rental
This process can be lengthy, consult our article on successful renting to ensure you don't forget anything!
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