Private landlord status: what opportunities for construction companies?

Private rental properties represent almost a quarter of primary residences in France. However, for several years, rental investment has slowed due to rising interest rates, increased property taxes, and stricter environmental requirements.

In this context, public authorities are seeking to maintain the attractiveness of rental investment while accelerating the energy renovation of existing buildings. This approach opens up new opportunities for building professionals, who are called upon to support private landlords in bringing their properties into compliance and increasing their value.

A regulatory framework that promotes renovation work

Combating energy-inefficient housing is now a major driver of transformation in the rental housing stock. Since January 1, 2025, properties rated G on the Energy Performance Certificate (EPC) have been progressively excluded from the rental market. Properties rated F and E will in turn be progressively affected.

Landlords are forced to carry out work in order to maintain the ability to rent their property and preserve its heritage value.

For construction companies, these new constraints translate into increased specific demands, particularly regarding:

• thermal insulation of walls, attics and floors;
• the replacement of energy-intensive heating systems;
• the installation of heat pumps;
• the renovation of exterior joinery;
• the installation of high-performance ventilation systems;
• comprehensive renovations allowing for a significant gain in energy performance.

Tax incentives: catalysts for investment

Several tax mechanisms encourage landlords to undertake renovations.

A reinforced land deficit

The owner of an unfurnished rental property, subject to the actual expense method of taxation, can deduct expenses from rental income. When expenses exceed rental income, this results in a rental loss.

To encourage energy-efficient renovations, the cap on offsetting property deficits against overall income has been temporarily raised to €21.400 (instead of €10.700) for certain works that significantly improve a property's energy performance. These works must enable a property to move from an energy rating of E, F, or G to a rating of A, B, C, or D.

This measure helps to support major renovation projects.

In general, the French housing stock is mostly made up of old housing requiring modernization work.

Investors are increasingly looking for properties to renovate, allowing them to combine wealth creation and tax optimization.

MaPrimeRénov' and additional aid

Even though the terms and conditions change regularly, energy renovation grants remain a determining factor in landlords' investment decisions.

RGE-certified companies directly benefit from this momentum by working on projects eligible for public support schemes. Applications for assistance must be submitted before work begins.

Changes in public aid and regulatory requirements now favor comprehensive renovations rather than one-off interventions.

New opportunities with private landlord status

Faced with a housing shortage, the government launched the Housing Recovery Plan to accelerate construction and facilitate access to affordable housing. The goal is to create two million new homes by 2030.

It is based in particular on a tax scheme designed to encourage individuals to invest in rental housing: it is a tax depreciation, deducted from property income, which is spread over time.

Without geographical limits (unlike previous schemes), it is reserved for collective residential buildings, whether new or old housing, located throughout France, including overseas.

The status of private landlord is accessible to a wide range of profiles wishing to build up assets (natural person or real estate civil company subject to income tax).

This scheme entitles you to a tax depreciation of 3,5% to 5,5% per year on the purchase price of the new property, net of expenses. It is capped at €8.000 to €12.000 per year per tax household.

However, the eligibility conditions are very restrictive: allocation to the tenant's main residence, rent ceiling and tenant resources to be taken into account, minimum rental commitment of nine years.

To be eligible, older properties must undergo renovation work representing at least 30% of the property's value and enabling them to achieve an energy performance diagnosis (DPE) at level A or B.

A bill introduced by Valérie Létard (former Minister of Housing) was passed by the National Assembly at the end of May 2026. It aims to relax the conditions of this scheme:

• the renovation work must represent 20% of the value of the property (instead of 30%);
• There is an obligation to jump two classes in the DPE if the accommodation is in F or G (energy sieve), and one letter in other cases.

It will be necessary to monitor the progress of this proposed law.

The status of private landlord is not merely a matter of taxation or property ownership. It also represents a significant driver of business for construction companies. Building professionals thus have a promising market, provided they position themselves as key players in the energy transition and comprehensive renovation. In a context of strain on new construction, the renovation of the private rental housing stock appears more than ever as a source of sustainable growth for the entire sector.

Opinion piece by Emmanuelle Delfosse, tax law consultant at ORCOM.