Short-term rental has become an essential topic, especially with the rise of platforms like Airbnb. Before embarking on this adventure, it is essential to understand the local regulations regarding seasonal rentals. This article will guide you through the main rules to follow to avoid unpleasant surprises and ensure a successful rental experience.
Key Points
- Short-term rental is limited to 120 days per year for a primary residence.
- Large cities impose strict rules for seasonal rentals.
- The status of Non-Professional Furnished Rental (LMNP) is often more advantageous for small incomes.
- Home insurance is mandatory to protect the owner.
- The new regulations of 2024 strengthen control over seasonal rentals.
Understanding Local Regulations for Seasonal Rentals
Definition and Legal Framework
Short-term rental is a type of lease that lasts from a few nights to several months. It is governed by the Civil Code and the Tourism Code. To comply with the law, an owner cannot rent their property for more than 90 consecutive days to the same person, nor exceed 120 days per year. In 2023, about 15% of rentals in major French cities were seasonal rentals.
Differences Between Primary and Secondary Residence
For a primary residence, the rental is limited to 120 days per year. However, some cities may require prior registration. In contrast, for a secondary residence, the rules are stricter, especially in large cities. It is crucial to understand these differences to avoid legal issues.
Maximum Duration of a Short-Term Lease
A short-term lease cannot exceed 90 consecutive days. Since 2018, there has also been a mobility lease that allows renting for a duration of 1 to 10 months. To rent your primary residence, it is possible to do so for up to 120 days per year without authorization, as long as the housing is considered your primary residence.
It is essential to gather information about local rules before embarking on short-term rental. Each city has its own requirements, and it is important to comply with them to avoid penalties.
Legal Obligations According to City Size
Large Metropolises: Increased Constraints
In large cities, such as those with more than 200,000 inhabitants, the rules are stricter. To rent a secondary residence, one must obtain a change of use authorization. This means that the owner must convert their property into hotel accommodation and declare it. For example, in Paris, this may require the purchase of a commercial space to compensate for the loss of housing.
Medium and Small Cities: Simplified Procedures
For medium or small cities, the procedures are generally simpler. A simple declaration via the CERFA form n°14004*02 is often sufficient. However, it is important to check with the town hall, as some tourist areas may have specific rules. For example, in La Baule, a limitation of 84 days per year has been established for short-term rentals.
Mandatory Registration Procedures
It is essential to comply with registration procedures. Here are some key points to remember:
- Check local requirements: Each city may have its own rules.
- Fill out the CERFA form: This is often the first step to declare your rental.
- Be informed about limitations: Some cities impose restrictions on the number of rental days.
The rules may seem restrictive, but they are in place to protect the balance of the real estate market. Understanding these obligations is crucial to avoid future problems.
Status and Taxation of Short-Term Renters
Choosing Between LMNP and LMP
The choice between LMNP (Non-Professional Furnished Rental) and LMP (Professional Furnished Rental) depends on the income generated by the rental. If your annual rents are less than 23,000 euros, you are considered LMNP. Beyond that, you switch to the LMP status, which entails different tax obligations. In 2023, about 85% of short-term renters were under the LMNP status.
Specific Taxation for Short-Term Rentals
Income from short-term rentals is subject to the Industrial and Commercial Profits (BIC) regime. Here are the tax options:
- Flat-rate regime: For income below 70,000 €, you can deduct 50% of the rents.
- Real regime: For higher income, you can deduct actual expenses.
| Type of Regime | Annual Income | Possible Deductions |
|---|---|---|
| Flat-rate regime | < 70,000 € | 50% of rents |
| Real regime | > 70,000 € | Actual expenses |
Don’t forget the tourist tax, which is mandatory in many tourist municipalities. In Paris, it is 5% of the price per night per person, capped at 5 €.
Impact of Rental Income on Taxation
Short-term rental income must be declared. If you earn more than 23,000 € per year, you will need to register with the social security for the self-employed (SSI) and pay social contributions. These contributions are calculated based on rental income with a 60% allowance.
In summary, it is crucial to understand the tax implications of your rental status. The choices you make can have a significant impact on your finances.
Insurance and Guarantees for Seasonal Rentals
Mandatory Home Insurance
For owners who rent their property short-term, home insurance is essential. It protects against damages caused by tenants and also covers accidents that may occur in the property. Generally, a multi-risk home insurance is sufficient to insure a vacation rental.
Rental Guarantees and Deposit
It is common for owners to request a rental guarantee. This can take several forms:
- Security deposit: often equivalent to one or two months’ rent.
- Joint guarantee: a person guarantees the tenant.
- Blocked account: the amount of the guarantee is deposited in a blocked account in the tenant’s name.
Unpaid Rent Insurance
Unpaid rent insurance is an option for owners who wish to protect themselves against non-payment risks. This insurance covers unpaid rents and may also include legal fees in case of disputes. This helps secure rental income and avoid significant financial losses.
In summary, it is crucial for owners to understand the different insurances and guarantees available to protect their investment when renting seasonally. This allows them to rent with peace of mind while minimizing associated risks.
New Regulations 2024 for Short-Term Rentals
Enhanced Role of Property Managers
Since April 2024, property managers have a more significant role. They must now work with local authorities to ensure that short-term rental properties comply with standards. This aims to reduce illegal rentals.
Changes to Short-Term Leases
The mobility lease, introduced by the ELAN law, allows renting a property for a duration of 1 to 10 months. This is aimed at people with specific situations, such as an internship or a temporary assignment. In 2023, this type of lease already represented 8% of short-term rental contracts in major university cities.
Impact of New Laws on Owners
The new laws require that any short-term lease must indicate the rent applied to the previous tenant. This aims to ensure transparency and prevent abuse. Owners must therefore be attentive to these new requirements to remain compliant with the law.
In summary, the new regulations of 2024 bring significant changes for short-term rental owners. It is essential to understand these rules to avoid future complications.
Management and Seasonal Rental Contract
Mandatory Mentions in the Contract
For a rental contract to be valid, it must include certain essential information. Here are the elements not to forget:
- Identity of the parties: names and addresses of the owner and tenant.
- Description of the property: address and characteristics of the housing.
- Duration of the lease: specify whether it is a short-term or standard lease.
Importance of the Inventory
The inventory is crucial to avoid conflicts. At the end of the rental, the property must be returned in the same condition as at the start. Here’s how to proceed:
- Conduct an inventory: do it with the tenant or by an expert.
- Document damages: take photos to prove the initial condition.
- Keep the document: keep a copy for future reference.
Selection and Rights of the Tenant
Choosing the right tenant is essential. Here are some tips:
- Check references: ask for proof of solvency.
- Establish clear rules: specify expectations in the contract.
- Respect the rights of the tenant: ensure compliance with current legislation.
In summary, a well-drafted contract and a thorough inventory are key elements for a successful rental. Do not neglect these steps to avoid future problems.
Conclusion
In summary, before embarking on short-term rental, it is essential to understand the rules surrounding it. Whether for your primary or secondary residence, each situation has its own requirements. The laws may seem complicated, but they are there to protect both owners and tenants. Be sure to inquire with your town hall and comply with legal obligations to avoid problems. By following these tips, you can enjoy your rental experience with peace of mind.
Frequently Asked Questions
What is short-term rental?
Short-term rental is a type of lease for stays that can last from one night to several months. It is often aimed at tourists or people on business trips.
How many days can I rent my primary residence?
You can rent your primary residence for up to 120 days per year without authorization, as long as you live there for at least eight months per year.
Do I need permission to rent my secondary residence?
Yes, to rent your secondary residence, especially in large cities, you often need to obtain permission from the town hall.
What taxes do I need to pay for short-term rental?
Income from short-term rental is subject to taxes such as the tourist tax. Additionally, you must declare your rental income.
What insurances are necessary to rent a property?
It is recommended to have home insurance to cover potential damages. Unpaid rent insurance can also be useful.
How does the registration of a short-term rental work?
Registration varies by city. Some require a registration number that you must include in your listings.