The Gites in France Blog
Gites in France – is one Gite enough?
Our new series on Running Gites in France
Gites in France – Is one gite enough?
If you’ve ever thought of running gites in France then you need to know what the income and costs look like early on. So, this week we’re providing some detailed information based on running a gite in the Loire Valley, France.
The figures are realistic and based on a two bedroom holiday cottage. The cottage has lots of interior space, no pool but it does have a good sized south facing garden.
The gites doesn’t have UK TV or WiFi, but it has been constantly updated so the bathroom and kitchen are new and the décor is of a high level. The gite provides linen for its customers and an end of stay clean is priced into the weekly rental.
The gite has been completely renovated and in today’s market the property is worth maybe €130,000.
Annual costs for running a gite in France:
|Tax on Gite Turnover||€500|
Note: General maintenance includes replacing furniture, linen and equipment due to failure and is a conservative estimate.
Annual Income for gite
|6 High Season Weeks @ €650 per week||€3,900|
|10 Mid Season Weeks @ €525 per week||€5,250|
So that leaves a profit of €6,150
Don’t forget, we have shown a higher performing gite that gets 16 weeks of bookings per year. The figures also assume that the owners do all the change-over cleaning, gardening and general gite management. These figures also assume that there is no mortgage on the property.
Unlike in the UK, don’t assume any sort of growth in the property value. If you get any then fantastic, but treat it as an unexpected bonus.
Be prepared to have to invest in the property year on year just to keep the bookings coming in, but not seeing that investment reflected in the value of the gite. In the rural areas, where many gites in France are located, it’s just been a fact of life since 2007 and we can’t see that changing any time soon.
So is one gite enough?
So, the conclusion to the question I posed at the beginning of this post is probably self-evident by now.
No – one gite isn’t enough to live on as your sole income. Unless you are supplmenting a pension or another salary then you’ll need more, and also maybe a theme to your accommodation to increase your occupancy in quieter months. More on the subject of themes in future posts. Have fun!
Moving to France in 2006 and leaving corporate life behind, we started running gites and then created a Chambre d’Hote.
Almost ten years on, while still running gites, the Chambre D’Hote specialises in theme holidays, welcoming people from around the world.
LoireLife provides a place for others to advertise their gites in the Loire Valley, without the high commissions that larger holiday lettings websites charge.