{"id":89712,"date":"2025-02-06T13:06:58","date_gmt":"2025-02-06T12:06:58","guid":{"rendered":"https:\/\/www.ovonetwork.com\/blog\/?p=89712"},"modified":"2026-06-10T12:17:05","modified_gmt":"2026-06-10T10:17:05","slug":"holiday-chalet-investment","status":"publish","type":"post","link":"https:\/\/www.ovonetwork.com\/blog\/holiday-chalet-investment\/","title":{"rendered":"Are holiday chalets a good investment? Benefits, challenges, and tips for success"},"content":{"rendered":"\n

If you love skiing or the mountains, investing in a rental chalet can be a good way to combine pleasure with financial gain. But before you take the plunge, it\u2019s important to define your objectives and fully understand the challenges, the tax and legal obligations, as well as how you can maximise your rental income.\u00a0<\/strong><\/p>\n\n\n\n

In this article, we\u2019ll give you all the keys to a successful investment in the mountains.<\/strong><\/p>\n\n\n\n

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Defining your rental chalet investment objectives<\/h2>\n\n\n\n

Before you even consider buying a property, the first step to a successful investment is to define your objectives<\/strong>. Are you hoping to make a profit, amortise the cost of your chalet when you\u2019re not using it, or simply cover your expenses?\u00a0<\/p>\n\n\n\n

We call these objectives profitability, occupancy and repayment<\/strong>. We define each of them, along with their advantages and disadvantages, in this article<\/strong><\/a>.<\/p>\n\n\n\n

But there are other factors to consider, too. Do you want to create a property portfolio<\/strong>? Do you have a tax exemption objective<\/strong>? Is it important to you to create a place where all your family can get together during the holidays?<\/p>\n\n\n\n

All these considerations influence the choice of property, as well as its location.<\/p>\n\n\n\n

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\n Defining your holiday rental objectives<\/a>\n <\/div>\n<\/div>\n\n\n\n
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Create a chalet you\u2019ll love, such as Chalet OCimes<\/strong><\/a>, in Samo\u00ebns.<\/figcaption><\/figure>\n\n\n\n

Tax and legal considerations when you invest in a chalet<\/h2>\n\n\n\n

It is important to choose the right legal status for your needs. Depending on the tax regime you choose<\/a><\/strong>, you may be able to benefit from certain tax deductions. This can be crucial to the profitability of your investment.<\/p>\n\n\n\n

If you opt for the \u201creal tax regime\u201d<\/strong>, you can deduct the costs of your rental investment, including interest on the loan, from your income tax. Under the \u201cmicro-BIC scheme\u201d<\/strong>, you can claim a flat-rate deduction of 50% before tax on your rental income.<\/p>\n\n\n\n

We strongly recommend that you seek the advice of an accountant<\/strong> or property investment expert at an early stage, so that you can choose the option that will benefit you most.<\/p>\n\n\n\n

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Take into account any exemptions \u00a9 Photo: Scott Graham<\/a> via Unsplash<\/figcaption><\/figure>\n\n\n\n

In all cases, keep a close eye on regulatory changes<\/strong>: tax breaks, new laws applying to seasonal rentals, environmental laws, accessibility laws, local town planning schemes, etc. OVO Network partner owners receive an email explaining all the important changes.<\/p>\n\n\n\n

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\n Complete guide to taxes on mountain chalets<\/a>\n <\/div>\n<\/div>\n\n\n\n

Sale and leaseback<\/h3>\n\n\n\n

Buyers of a sale and leaseback property<\/strong> receive a 20% refund of the VAT payable on property purchases in France. In most cases, the developer will advance the 20% VAT charge to the buyer when the purchase is confirmed.<\/p>\n\n\n\n

This means that the buyer does not pay the VAT normally due, which considerably reduces the purchase price. As a reminder, all property owners in France must pay \u201ctaxe fonci\u00e8re\u201d<\/strong>, which is always charged to the purchaser.<\/p>\n\n\n\n

Para-hotel tax<\/h3>\n\n\n\n

The \u201cpara-hotel\u201d tax system also allows owners to reclaim the 20% VAT on construction costs, or on the new purchase price of a chalet or flat.\u00a0<\/p>\n\n\n\n

This system can be used when you have purchased a future property or a completed new building, when you are carrying out your own construction project or when you are undertaking major renovations on an existing property.<\/p>\n\n\n\n

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Invest in a rental chalet. \u00a9 Photo: Tierra Mallorca<\/a> via Unsplash<\/figcaption><\/figure>\n\n\n\n

To understand the advantages, disadvantages and legal conditions associated with these two property investment systems, download our free guide by clicking on the link below.<\/p>\n\n\n\n

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\n Get your free guide<\/a>\n <\/div>\n<\/div>\n\n\n\n

How to choose the right chalet<\/h2>\n\n\n\n

There are several criteria to consider depending on your rental objective, but the most important are location<\/strong> and accessibility<\/strong>.<\/p>\n\n\n\n

The location is crucial, as it will directly affect the experience of your guests<\/strong>, and will therefore also impact the success of your rental business. Do you want to offer a secluded stay in the heart of nature, or something close to the activities of a resort? Would you prefer a modern or traditional property, in a family-friendly or sporting resort?<\/p>\n\n\n\n

The vast majority of ski resorts in France have good road and rail links, and are relatively close to international airports. However, it\u2019s important to consider access<\/strong> to the chalet for guests who don\u2019t want to use their car.<\/p>\n\n\n\n

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Ch\u00e2tel is less than 80km from Geneva International Airport. Photo: \u00a9 L.Meyer<\/figcaption><\/figure>\n\n\n\n

You should also consider the space and facilities<\/strong> you want to offer your guests (and yourself and your family if you plan to occupy the chalet occasionally).\u00a0<\/p>\n\n\n\n

How many people can stay in the chalet? Does it offer a wellness facility (sauna or hot tub, for example), or is there enough room to install one? Does your chalet offer facilities suitable for all seasons: fireplace\/wood-burning stove, sunny terrace\/garden, etc.?<\/p>\n\n\n\n

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\n View our chalets for sale<\/a>\n <\/div>\n<\/div>\n\n\n\n
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Estimate the potential profitability of your chalet<\/h2>\n\n\n\n

Your potential income<\/strong> will be influenced by several criteria, such as your chalet\u2019s location, its facilities, comfort and decoration, but also by the rates<\/strong> you charge. It\u2019s important to be realistic about this, or you risk losing bookings.<\/p>\n\n\n\n

We have set up an <\/strong>online calculator<\/strong><\/a> to help you estimate the potential profitability of your chalet. This uses the performance data of all our similar properties in terms of location, facilities and capacity, to provide a realistic estimate of your potential annual income.<\/p>\n\n\n\n

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\n How much will your chalet earn?<\/a>\n <\/div>\n<\/div>\n\n\n\n

A large number of short bookings throughout the year can have a significant impact on your income, provided you set the right price<\/strong>. Set a price that will encourage more bookings.<\/p>\n\n\n\n

The tricky part here is finding the right balance. We have set up a proven pricing strategy<\/strong> to help you with that.<\/p>\n\n\n\n

For example, a week in low season cannot be offered at the same price as in high season. Similarly, if your chalet has no outside facilities, your rates will have to be particularly competitive during the summer.<\/p>\n\n\n\n

Predicting the profitability of your rental chalet means calculating the associated costs<\/strong>. Renovation work, charges, taxes, maintenance and cleaning costs\u2026 These expenses are specific to each chalet. That\u2019s why you need to seek advice from accountants and local concierge services. OVO Network can connect you to trusted professionals.<\/p>\n\n\n\n

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Snow clearance is one of the winter costs you have to take into account. This is Chalet Choquette<\/strong><\/a> in Les Houches.<\/figcaption><\/figure>\n\n\n\n

Finally, bear in mind that your property will most likely increase in value over time<\/strong>. Although past performance is no guarantee of future returns, this has been the case in the French mountain resorts.<\/p>\n\n\n\n

The below graphs, based on data from the website MeilleursAgents<\/strong><\/a>, notaries and the INSEE statistics bureau, show the evolution of property prices in several mountain resorts over the last 10 years.<\/p>\n\n\n\n

La Clusaz<\/h3>\n\n\n\n
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M\u00e9ribel<\/h3>\n\n\n\n
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Font Romeu<\/h3>\n\n\n\n
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Super-Lioran<\/h3>\n\n\n\n
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When to launch your chalet on the rental market<\/h2>\n\n\n\n

While you may be eager to open the doors to your chalet and start earning money from it, it\u2019s essential not to rush the launch. Check that the property is ready to appeal to its target audience<\/strong> if you want to make sure you receive bookings year after year.<\/p>\n\n\n\n

The first thing to do is to estimate when your chalet will be ready to receive its first guests<\/strong>. Any necessary work should be completed, the equipment and decoration finalised, and all legal obligations met. This is what we call \u201cguest-ready\u201d.<\/p>\n\n\n\n

The winter season<\/strong> is the most lucrative, so it\u2019s advisable to have your chalet ready by late autumn. However, summer now attracts many visitors, and a spring launch<\/strong> can serve as a practical test to ensure that your chalet is at its best.<\/p>\n\n\n\n

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Chalets are in demand, even in summer. This is Chalet Keramis<\/strong><\/a> in Morillon.<\/figcaption><\/figure>\n\n\n\n

From a marketing point of view, the date of the first photo shoot<\/strong> is crucial in the launch process. It\u2019s worth noting that you\u2019ll probably need two sessions to present your chalet in summer and in winter.\u00a0<\/p>\n\n\n\n

Finally, the first year of operation <\/strong>should be considered carefully in the financing plan. Your rental business will find its cruising speed after several months, once the summer and winter photos are online.<\/p>\n\n\n\n

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\n Planning your chalet launch<\/a>\n <\/div>\n<\/div>\n\n\n\n
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Balancing personal use and rental income<\/h2>\n\n\n\n

If you plan to stay in your rental chalet yourself, it\u2019s important to find a balance<\/strong> that doesn\u2019t affect your financial goals.<\/p>\n\n\n\n

As a general rule, our partner properties generate around two-thirds of their income<\/strong> in winter. Your chalet will therefore be more profitable if it remains available to guests for the majority of this season, particularly during the winter holidays.\u00a0<\/p>\n\n\n\n

To give you an idea: a week\u2019s rental during a period of high demand, such as the February school holidays, can earn you up to three times as much as a week\u2019s rental out of season.<\/p>\n\n\n\n

However, more and more people are travelling to the mountains outside the ski season, and some properties achieve over 70% occupancy over 12 months<\/strong>. Spread out over the year, these bookings allow you to maximise your income and be more flexible.<\/p>\n\n\n\n

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\n How to make money from your home<\/a>\n <\/div>\n<\/div>\n\n\n\n
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Create a comfortable interior for you and your guests. This is Chalet Rodzina<\/strong><\/a>, in La Clusaz.<\/figcaption><\/figure>\n\n\n\n

Finally, there are a number of points to bear in mind if your rental chalet is also your second home<\/strong>:<\/p>\n\n\n\n