1 Unite with other owners

The first thing to do is to contact other owners of the same type of property and create an"association" together.

In order to get in touch with them, you could ask your "syndic" (the person responsible with the management of common parts of a condominium) to give you the list of the owners. You could also post the information on an internet forum.

Other possibility is to search at the "Service des hypothèques" by asking the file of your real estate seller in order to find the list of all his clients.

Your association doesn't necessarily have to be registered at the "prefecture". An unreported association is sufficient enough. The idea behind the union is to try to adopt a common strategy and to avoid the unnecessary attorney fees. Your association could join the "FEDARS" which is a federation of French associations of private real estate investors.

Don't hesitate to replace your "syndic" if the current one is a partner of the seller. This situation happens quite frequently. A competent and an independent "syndic" can be of great help.

2. Keep yourself informed about the residence

It is very important to make yourself an accurate idea about the real state of the residence. Visit it and appreciate if it is in good repair. Also pay attention to its occupancy rate and to the generally charged prices. Try to get some information about the financial situation of the residence. You can even ask about it the staff working in the residence.
All this information about the residence should help you decide whether the investment in that exploitation would pay-off or not.

3 Contact a lawyer to organize your defense

If the operator doesn't pay your rent anymore, it is likely because he must be facing bankruptcy. In this case, you must prepare yourself for the worst. The first thing to do is to get in touch with an experienced lawyer in the field of collective proceedings and commercial leases. Hiring a lawyer is crucial if you want to initiate the following procedures, often needed : demands for payments judicial lease termination("résiliation judiciaire"), legal bailout/receivership of the operator ("mise en redressement judiciaire"), debt statements ("declaration de créances") and so on. Your lawyer must work with tax lawyer to take into account the tax problems (VAT).

4 Decline the operator's rent reduction offers

If the operator doesn't manage to pay your rent, it may be a sign that you have been the victim of a frequent scam called " fonds de concours", related to real estate investments.
This usually happens in the following way: the property developer proposes a very attractive and secure investment package, with so-called guaranteed high rental returns. But the promised rent is actually being artificially increased due to a secret subsidy paid by the property developer to your operator. This contribution is intended to cover the deficit of the first months (or years). In this case, you cannot trust the operator and the best choice would be to pick another operator or to take up by yourself the management of the residence.

If your operator is subject to a "procédure de sauvegarde" or "redressement judiciaire"(bankruptcy proceedings), be wary of the "mandataire judiciaire" (official receiver). Quite often, the "mandataire judiciaire" makes the residence owners believe that they must accept their rent reduction offers. This is completely false. If the rent cannot be paid and even if the operator deals with bankruptcy, you still have the right to terminate the lease. So remember, if you aren't paid, don't hesitate to terminate the lease. Of course, such a decision must be taken according to each particular case, eventually after consulting a lawyer and provided that the position is accepted by the largest majority of the owners.

5 Refuse rents calculated according to the turnover or the results

Lately, it has become very current for the operators to pay rents based on results or on the turnover of the residence.

The clause is conceivable only if the operator is really honest and if a thorough examination of the accounts is intended in the lease contract.

6 Search for another operator or take up the exploitation and create your own company

There still exist honest and competent operators. So if your operator isn't capable to pay your rent, it's time to look for another one. It is also possible to get in touch with professionals that could help you with the management of your residence.
In my opinion the best choice for an owner is to set up an operating company and to rent to it his premises. The company would then organize the management of the residence with the help of third parties.
It surely isn't easy to organize by oneself the management of its own premises but it is still not impossible. Some types of residences, like the one for students, aren't difficult to manage. The situation is not the same with the tourism residences, because, in this case, a commercial promotion is needed and it is more difficult to find professionals that provide such services.

7 Be aware that you are the owner of a property intended for a professional use

Many owners believe they are buying a simple investment product. But an apartment located in a tourism residence is a real estate good intended for only one type of professional use. You must get involved in the management of this property if you want to ensure its sustainability and profitability.

So, it is necessary that some of the owners of apartments located in the residence to be put in charge with the follow-up of the good repair of the residence. This way they could monitor the business development, they could find a good operator and follow-up its performance and so on.