Béatrice, the president of her condominium’s syndicate council for ten years, expresses frustration with absentee co-owner-lessors who prioritize financial gain over community involvement. With 85% of the 200 lots owned as rental investments under the Pinel scheme, many owners neglect general meetings, complicating essential maintenance decisions. Béatrice recalls a more connected community as an owner-occupier and wishes for a return to residents who value their homes, especially with the upcoming end of the Pinel scheme in 2025.
Béatrice is marking a decade as the president of her condominium’s syndicate council this year. She admits to feeling “a bit exhausted” by her responsibilities to this group, composed of elected representatives who manage communication between co-owners and the property manager. “I’m frustrated by the lack of involvement from some owners who don’t even participate in the community despite owning property here!” shares the retired resident.
Many of these co-owners have opted to make a real estate investment for rental purposes in the Pinel scheme, aiming for significant income tax reductions. In return, they commit to leasing their properties at affordable rates to tenants who meet specific income criteria.
Limited Participation from Pinel Investors at Meetings
In Béatrice’s condominium, a considerable percentage consists of Pinel investors. Out of 200 units in this Nouvelle-Aquitaine complex, 85% are owned by landlords. This trend is understandable; the building was established roughly a decade ago, coinciding with the introduction of the Pinel law. “These individuals purchased properties primarily for tax savings rather than as real homes,” Béatrice expresses her discontent.
Most of these owners reside outside Nouvelle-Aquitaine, particularly in places like Île-de-France, resulting in low participation rates at the co-ownership’s general assemblies. Although there are about 170 owners, only a handful attend the meetings, laments Béatrice.
Is Pinel More about Investment than Homeownership?
This lack of engagement complicates decisions for necessary updates, such as repainting the lobby and refurbishing the basement tiles. Béatrice observes that these landlord-owners “would prefer to maintain an attractive property for potential buyers once they decide to sell after their six to nine-year rental obligation under the Pinel scheme.”
Béatrice is also concerned about some owners hastily converting their T3 apartments into T4s to accommodate more students. She feels this reflects a predominantly financial motivation behind their property ownership. Moreover, the frequent turnover of tenants, often as students move on to new life chapters, adds to her frustration.
The Future of Pinel in Question
At times, Béatrice misses her previous apartment in the Paris region, which she sold a decade ago to relocate to Nouvelle-Aquitaine: “Back then, we were nearly all owner-occupiers; we knew one another and were fully engaged in community life.”
Her greatest hope is that the landlord-owners will eventually sell their properties to individuals who will reside in them. Béatrice contemplates whether to sell her own home and invest in a new property in a yet-to-be-constructed development. With the impending end of the Pinel scheme on January 1, 2025, and no new rental investment program set to replace it, her dream of revitalizing community life may soon become more challenging.