Lyon 2-bed duplex at €423,200 and €1,524/month: first-rental sanity check

D

daily_cedar

Landlord
Established
We’re considering a 2-bed duplex in Lyon for €423,200, with expected rent of €1,524/month and a headline gross yield of roughly 4.3%. The building appears sound, but lease length and tenant turnover could materially change the result.

My conservative model allows for vacancy, management, routine maintenance and a larger repair reserve. As this would be our first rental, what local cost are we most likely underestimating—insurance, property tax or something else? What net yield would compensate you for the risk?
 
Start with the actual annual property tax and the building’s recent service-charge statements rather than estimates. For a duplex, also establish which repairs sit with the apartment and which are shared through the building. At this gross yield, financing costs, management and one expensive shared project could leave very little net cash flow.
 
Also, is €1,524 the rent alone, or does that figure include charges paid by the tenant? That distinction can make the headline yield misleading. I’d want the proposed lease terms, realistic reletting time and evidence that this rent is achievable for this exact unit—not just comparable listings.
 
I wouldn’t choose a target net yield in isolation. If the location supports dependable demand and the building has no obvious major work ahead, a modest net return may be acceptable; with borrowing, weak cash flow and uncertain turnover, it may not be.

Run three cases: expected occupancy, a longer vacancy plus reletting costs, and a major repair in the same year. Get the property tax figure, insurance quote, building accounts and planned-work details before deciding.
 
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