Renting to a Family Member in 2025: Everything You Need to Know

Are you a property owner thinking about renting your home to a family member—perhaps your student child, a nephew, or a sibling? Is it legally allowed? Can you set the rent freely? And can your tenant receive housing assistance (APL)? Here are the answers to all your questions for 2025.

Renting to a Family Member: What Does the Law Say?

Renting to a relative is entirely legal. However, this type of rental must follow the same legal rules as any traditional rental. You are required to:

• Sign a written rental agreement in accordance with the law of July 6, 1989
• Set a monthly rent aligned with local market rates
• Define the payment terms (bank transfer, check, etc.)
• Specify reimbursable charges and how they will be calculated

In short: even among relatives, the legal framework must be strictly respected to avoid disputes or tax reclassification.

What Rent Should You Set to Avoid a Tax Adjustment?

It can be tempting to offer symbolic rent to a family member. But be careful: if you set a rent that is too low, the tax authorities may consider that you are retaining personal use of the property. In this case:

• You can no longer deduct property-related expenses (property tax, loan interest, maintenance work…)
• You lose any tax benefits associated with unfurnished rentals

To avoid this, base your rent on the market value for a similar property (size, location, features, property type). A rent too far below market value can expose you to a tax reassessment.

APL: Can a Family Member Receive It?

Eligibility for APL (Aide Personnalisée au Logement – Personalized Housing Assistance) depends on the family relationship with the property owner. In 2025, there are two situations:

• If the tenant is a direct relative (child or parent): they cannot receive APL, even if the lease is valid and the rent is at market rate.
• If the tenant is another family member (sibling, uncle, aunt, cousin, etc.): they can receive APL as long as they meet the standard eligibility criteria (income, decent housing, etc.).

💡 To check APL eligibility, use the official CAF simulator.

Conclusion: Renting to a Relative—Yes, But Follow the Rules

Renting to a family member is legal and often convenient, but it doesn’t exempt you from standard lease regulations. Follow legal requirements, set a fair rent, and be aware of the tax implications. If in doubt, consult a tax advisor or real estate professional.

Want to apply for APL? Read our guide!

Looking to rent a home? Explore our listings on Lodgis.com.