Your First Rental Property Investment: A Complete Guide

Are you considering entering the real estate market and making your first rental property investment? Whether it’s to build wealth, generate additional income, or prepare for retirement, a well-executed investment requires careful planning. In 2025, the fiscal and property context is evolving, but the fundamentals remain the same.

Define your target tenants

The first step is to identify who you want to rent your property to. This decision will influence the type of property, its size, and its location.

• Students: Prefer a studio or one-bedroom apartment close to universities or well-connected by public transport.
• Young professionals: Focus on lively neighborhoods near business districts and amenities.
• Families: Opt for larger apartments located near schools, nurseries, and parks.

Choosing the right location

Location is one of the most important factors in a successful investment. It determines rental demand, potential rent levels, and the property’s long-term value.

In 2025, prioritize cities with strong economic activity (like Lyon, Nantes, Bordeaux…), good transport infrastructure, and high rental demand.

What type of property to choose?

New or old?

New properties offer interesting tax advantages (such as the Pinel+ scheme), lower maintenance costs, and better energy performance, although they usually cost more. Older properties can deliver a better gross yield but may require renovation work.

Unfurnished or furnished?

Furnished rentals under the LMNP status remain in 2025 a powerful fiscal strategy despite recent updates. It allows you to amortize the property and significantly reduce tax on rental income.

To learn more about these changes, read our dedicated article: LMNP Taxation 2025.

Assessing your project’s profitability

A successful investment depends on its profitability. To evaluate it properly, calculate:

• Gross yield: (annual rent / purchase price) x 100
• Net yield: by factoring in expenses, taxes, and vacancy periods

“A good rental investment always starts with a clear strategy, a thoughtful property choice, and smart tax planning.”

Boosting your investment with the right renovations

If you invest in an older property, certain renovation works can increase rental value while allowing you to benefit from incentives such as MaPrimeRénov’.

Learn more in our article: MaPrimeRénov’ (MPR)

Conclusion

In 2025, succeeding in your first rental property investment relies on four key pillars: defining your target audience, selecting a strategic location, choosing the right property type, and optimizing taxation. Lodgis supports every investor throughout their journey to maximize profitability and secure their real estate project.