Luxury chalets in Courchevel or Megeve: what the advertised yield does not tell you

Figures circulate freely in the property press and on specialist portals: gross yield of 4 to 6 percent in Courchevel, 3 to 4 percent in Megeve, occupancy rates exceeding 60 percent for well-managed chalets. These figures are not wrong, but they describe a market average, not the net yield an individual investor will obtain on a specific property.

Between the gross yield advertised by an agency and the net yield actually received by the owner, the gap can reach several percentage points, depending on management, the tax structure chosen and the real occupancy rate. For an investor approaching this market without hospitality-sector experience, these gaps are rarely anticipated before the purchase.

Gross yield never survives management costs intact

A luxury chalet rented out in high season is not managed like a standard rental property: high-end concierge services, cleaning between each stay, maintenance of the pool or private spa, managing arrivals and departures often staggered relative to hotels. These services, essential to the premium positioning, typically represent between 20 and 35 percent of gross rental income depending on the service level chosen.

On top of this come vacancy periods outside peak season, marketing costs aimed at an international clientele, and the upkeep of a property that must remain flawless for a clientele that compares it to palace hotels. A serious yield audit must integrate all these items before any acquisition decision, not just the price per square metre and the observed average rent.

The French furnished-rental status: a powerful tax tool, misused by many first-time investors

The Loueur en Meuble Non Professionnel status allows the property and its furnishings to be depreciated over roughly twenty years, significantly reducing tax on rental income. Used well, this mechanism fundamentally changes the yield equation of a luxury chalet intended for seasonal rental.

The most common mistake is choosing this status without anticipating its consequences on resale, on the split between land and furnishings in the accounting structure, or on its interaction with any para-hotel rental activity if ancillary services are offered. These decisions must be made before the acquisition, with a tax adviser familiar with the specifics of mountain real estate, not after signing.

The real occupancy rate, the most overestimated variable

An occupancy rate above 60 percent only holds true for chalets that are well located, well managed and correctly priced, with professional marketing sustained over several seasons. A property that is off the beaten path, poorly oriented, or priced above its actual amenities often struggles to reach half that rate, whatever the prestige of the resort.

Our recommendation to investors who consult us before an acquisition in Courchevel or Megeve comes down to a simple method: have the property and its local market audited by a perspective independent of the selling agency, compare the projected net yield to comparable references over several seasons, and never build the financing plan on the single optimistic scenario presented during the viewing.

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