The romantic, rose-tinted scene of escaping to France and leaving your worries behind seems to be a life-long dream for hundreds around the world. Many have brought this dream into reality by selling up and buying a property in France and live happily ever after… However as very often the reality is somewhat different. Traditionally a large percentage of those moving to France were couples who had retired and relied on their pension as their income however more and more young families are setting up home here in France years before the retirement age and sometimes as early as in their 30s and with a young family to support. How to earn a living now becomes a serious issue. There are of course those who spend their time working between France and the UK to earn an income. For those without this choice is setting up a gite really a survival option ? This depends upon how seriously it is taken and how prepared you are. The idea of setting up a gite can be taken quite casually if you are not relying on it as an income but if it needs to be profitable then many factors must be taken into consideration.
Gite History
The term « gite » is literally translated as « shelter ». I was recently told by a friend with answers to everything that the idea of gites becoming a holiday home started after World War II. De Gaulle was disappointed to find that a large majority of French soldiers had not seen and did not know many parts of France. He created a concept to encourage French families to discover and experience the different regions and cultures within their own country. This lead to the creation of the gite where the owners would live close by in order to provide assistance and a warm welcome to their guests. As a benefit to all parties the costs were kept low with certain tax advantages were given. The first gite was set up in 1951 in the Alps and over 50 years later there are 44,000 rural gites throughout France.
What is a Gite
The gite is global term which can be divided into a number of different types of accommodation. A „gite rural“ is traditionally a cottage in the countryside, by the sea or in the mountains with self-catering accommodation in the form of a separate or attached living area with bathroom, kitchen and bedrooms all self-contained. The owners of the gite are in most cases on site but not usually on the same living quarters. This allows one to have privacy however having someone around the corner in case of any problems. There are other types of gites as well such as « gite d’enfants » targeted to children and « gite d’etape » which work very much like a youth-hostel. These are particular popular with walkers and cyclists especially those undetaking one of the pilgramage routes across France.
Today the gite has become a real business. Each year the number of gites in France increases with an additional 2500 gites per year. With a growing offer there is certainly more and more competition. On the encouraging side it is a fact that France is the most visited country in the world. With over 79 million visitors in 2006 giving France a huge lead over second place Spain at 58.5 million and the USA at 51 million. So the love affair with France continues.
What is involved in setting up a gite ?
Like any small or large business there will be a certain amount of planning, bureaucracy and tax implications. It is the owner’s responsibility to ensure that the gite complies with the rules and regulations. It is important to create a business plan in order to predict your annual turnover against your estimated expenses to conclude whether you can actually earn a living. The time you invest in the business plan is invaluable. Every cost must be taken into consideration from new bed linen to mortgage repayments. Once you have these figures at hand it is best to speak to your accountant (one who ideally knows the French sytem!) to establish the most suitable tax regime for you. The business can be set up as a MICRO BIC which is suited for small (micro) businesses or a SARL which is a larger business where you would be expected to pay corporate and income taxes. Again your accountant should be able to advise you here.
Existing gite versus start from scratch
There are two options now which is either to purchase an existing gite which already has an income or to start from scratch. Both should be looked into and compared for example purchasing an existing gite means that the business is probably already earning so that you can start an income straight away. However creating a gite from scratch involves writing your business plan, maybe renovation on the property, getting the gite up to standard to comply with the regulations and then marketing your gite. One other important factor to be taken into consideration is that if you intend to convert a barn into habitable acommodation, if it has not already been inhabited, you will be required to apply for planning permission. This is the case for all barns or ruins that are converted to living space. The application is known as a CU (certificate d’urbanisme). The process however is quicker if you want to set up a gite. This is because gites are encouraged by the local tourist board and planning authorities as they attract investment and tourism to the many regions of France some less known than others.
An example of recent gite owners Robert and Delia Nash who moved to the Aveyron a couple of years ago. There gite is located in the countryside yet close to Rodez Airport. They decided to convert what was a detached outbuilding into a 2-4 person gite. Such experiences are invaluable when researching into whether to set up a gite or not. Nothing can replace first hand knowledge.
Why did you choose to set up a gite business in France ?
We had no experience in hotel management, but knew what we liked whenever we stayed somewhere. So we felt that if we could provide this quality of service, we would get regular and appreciative guests.
What was your greatest challenge when setting up your Gite in Fabregues ?
Getting the gite ready on-time. Coordinating with the builders, then decorating and furnishing to enable us to take the photographs to put up on the website before our market started looking for their summer holidays.
Is the business as seasonal as you expected it to be ?
We had hoped that it would be “all seasons”. We are prepared for this with heating in the gite etc, but we don’t seem to attract customers who wish to holiday during the winter. They obviously don’t appreciate how crisp and wonderful it is out here during the winter.
What advice would you give to anyone hoping to do the same ?
Advice 1: Make friends with as many people as you can both French and English in the area. Don’t worry; most people are keen to talk to you. They will be your lifeline when you need advice or assistance.
Advice 2: Don’t underestimate your budget, in fact, you should think what you need to spend – then double it!
What is your best bit of marketing advice ?
Look at the internet and advertising agencies as though you were a prospective client. If you feel that your holiday gite could be found within its pages then advertise with them.
We feel that some agencies are too large and for example a 2/4 person gite would get lost amongst a brochure full of large homes sleeping 8 persons with pool etc. So ensure that you target to your correct audience.
Purchasing a gite in the Aveyron.
An important consideration is getting into the region. Aveyron is fortunate to have flights into Rodez Airport from London and Dublin and Toulouse and Montpellier airports have a vast range of international flights both at about 1.5hours drive.
Aveyron’s agrcultural heritage allows for what could be said to be a perfect gite complex. This includes the traditional beautiful stone-built farmhouses for the owners on a plot of land with the outbuildings converted into secondary residences for the guests.
This gite complex is currently up and running. Situated in a central location in the Aveyron with good access to the lakes this complex consists of 4 fully equipped gites and 2 bed and breakfast rooms. It also has its separate owner’s property with 3 bedrooms as well as a large barn which has been converted into a communal games room. Complete with its own pool and an 80m2 training room for 499 000euros.
Here is an example of a complex of four up and running prestigious gites and the main farmhouse set upon 7 hectares of land with two swimming pools. The current owner is retiring and therefore selling the entire business and property and all the furniture too. It also has an exceptional view on the countryside and the valley, perfect for relaxation. This luxury gite is on the market at 675 000euros. The income figures iare available for those interested.
For those searching for a property yet to be converted into a gite there are two fantastic properties here both of which would make great gites. This property consists of a main house with 3 bedrooms and a farmhouse to restore and a beautiful, well-kept garden. Although in the countryside it is within walking distance from a lively market town. Priced at 290 000 euro including agency fees.
For something a little different how about converting this secluded watermill into a gite.
There are 3 buildings in total all of which are in excellent condition and water and electricity are connected for a mere 230 000euros.
Niche Markets and the future for gites
The market has certainly become more competitive however there is certainly a future for gites in this part of France. However potential and current gite owners must now « think outside the box » to provide something different from what all is already offered. The most recent property hunter I have talked to is looking to set up a « Yoga Retreat » hosting 10 guests at a time with a large yoga studio, an organic vegetable plot and large kitchen for communal dinners. Hanneke and Tony Herbert (who live in Mur de Barrez) new exactly what they wanted to create from the word go. They purchased a property here in the Aveyron and whilst living in their farmhouse they took on huge renovations to convert their large barn into a stunning 5-star rural gite. The results are outstanding although it can be a long and tough process. There are also gites catered towards sports enthusiasts and seminars.
Holiday makers are becoming more demanding and what with the choice available now you need to stand out and get the property out there. If the formula is right, the marketing is creative then the holiday makers will hopefully find you and your gite and be back for more.
Nav Vilain
Selection Habitat
+33 (0) 5 65 70 10 49
nav@selectionhabitat.com
www.selectionhabitat.com
