I created an apartment living unit. We do it all: we fill out the rental application, design a dream apartment, find/chose jobs, French names, families and negotiate daily life, from doctor's appointments to buying bread. I teach my students to do it all EN FRANCAIS!
The first step though, is making sure they have an apartment to stay in while we make all the rest happen, Whether you devote a whole quarter/semester to such an undertaking, as I do, or intersperse it with regular curriculum. Students are really invested when they get to be creative and invent a whole new life for themselves.