Parisian property management mandate: what the agency really does for you

In Paris, entrusting your property to a rental management agency is a common decision—and often the right one. However, the exact scope of a management mandate varies significantly from one professional to another, and owners sometimes discover too late what their contract did not cover.

This guide details what a rental management mandate really includes, what is generally excluded, the fees applied in Paris in 2026, and the practical questions to ask before signing.

What a rental management mandate covers

A rental management mandate is a contract through which an owner delegates the administration of their property to a professional holding a 'carte G' (a mandatory French professional real estate license). This professional—the agency—acts on your behalf, within the limits defined by the contract.

A standard mandate generally includes the following missions.

Tenant search and lease drafting. The agency creates the listing, organises viewings, verifies the candidate's financial solvency, and drafts the lease in compliance with current legislation—including rent control (encadrement des loyers) if the property is located in a 'zone tendue' (a designated area with a housing shortage). In Paris, this regulation has been in effect since 2019.

Rent collection and disbursement to the owner. Each month, the agency collects the rent and service charges, issues the receipt, and transfers the funds to a separate client account—a legal obligation. They also provide a detailed management statement, which is useful for your property income tax return.

Tenant relationship management. Follow-ups in the event of late payments, formal notices if necessary, handling routine requests, and coordinating maintenance work.

Entry and exit inventories (états des lieux). The contradictory (jointly signed) inventory is carried out by the agency at the start and end of the tenancy. It is the crucial document in the event of a dispute regarding damages.

What a management mandate does not always include

Legally, a management mandate is an obligation of means, not of results. The agency must act with diligence—it does not guarantee that everything will proceed without a hitch. Several points deserve special attention.

Unpaid Rent Insurance (GLI - Garantie Loyers Impayés) is an option, not a standard. It is offered separately at an additional cost of 2.5% to 3.5% of the rent. Without it, in the event of non-payment, the agency will handle reminders and formal notices, but the owner bears the financial risk alone.

Major works require your approval. Beyond a threshold set in the contract—generally between €500 and €1,500—the agency cannot engage any contractor without your written validation. This means you will be contacted, sometimes urgently, to validate quotes and schedules.

Coordination of complex projects is often charged as an extra. Some agencies apply additional fees (around 5% of the cost of the work) for projects exceeding a certain threshold. This point rarely appears on the first page of the contract.

Legal proceedings are outside the scope. In the event of persistent non-payment requiring legal action, the agency does not appoint a lawyer on your behalf. Legal fees remain your responsibility—unless a GLI policy is activated.

Non-Occupying Owner Insurance (PNO - Propriétaire Non Occupant) remains your responsibility. It covers damages occurring in the property between two tenancies or when the tenant is uninsured. It is highly recommended and sometimes required by building co-ownership regulations (règlement de copropriété).

Rental management fees in Paris in 2026

Management fees are freely set by agencies—the Alur Law only regulates fees chargeable to the tenant. The ranges observed on the Parisian market in 2026 are:

• Routine management: 6% to 10% of the rent including charges, most often around 7% to 8% (inclusive of tax)
• Letting fees (search, file, lease): the equivalent of one month's rent, shared with the tenant within legal limits (€12/m² for viewings, file, and lease + €3/m² for the inventory in Paris)
• Unpaid Rent Insurance (GLI): an additional 2.5% to 3.5%

Concrete example—for a one-bedroom apartment rented for €1,200 including charges with GLI: between €1,300 and €1,700 in annual management and insurance costs. In a year of re-letting, the total bill may exceed €2,500.

These amounts justify comparing not only the rates but also exactly what they include.

Questions to ask before signing a management mandate

To avoid unpleasant surprises, here are the points to clarify in writing with any professional before signing:

1. What is the threshold beyond which my approval is required for work?
2. Is GLI included? What are its activation conditions?
3. Are inventories carried out in-house or outsourced?
4. Do major works incur additional coordination fees?
5. What is the duration of the mandate and what are the termination conditions?

A serious professional will answer these questions without hesitation and state them clearly in the contract.

Classic mandate or company lease: which structure for your Parisian property?

Depending on your situation and financial objectives, a rental management mandate is not necessarily the only option to consider. Leasing to a legal entity via a professional or commercial lease offers advantages that Parisian owners often overlook: contractually guaranteed rents, a single stable point of contact, managed taxation, and the absence of frequent tenant turnover.

This structure is particularly well-suited for well-located properties, owners managing multiple apartments, or those who wish to secure their rental income over the long term without depending on an unpaid rent insurance scheme.

At PNW Partners, we support Parisian owners who want to structure their rentals sustainably. Whether it's a management mandate, a Law 89 lease, a furnished lease, or a company lease, we analyse with you the solution best suited to your property and your objectives—with competitive fees and a dedicated contact person.

📞 Talk to us about your property — first consultation without obligation.

To go further: Company lease in Paris: complete guide for the owner