Tourist rentals are booming! Many property owners are taking the plunge to supplement their income or make a profit from their property. However, “lucrative activity” often means “legal framework”. And yes, even when it comes to renting out your adorable studio with a sea view or your cozy mountain chalet, strict rules apply.
1. What is a tourist rental?
Before discussing the regulatory standards, it’s important to know what a tourist rental is. A tourist rental refers to any furnished property rented out for a short period of time, usually to a visiting clientele, and on a repeated basis. Whether you use platforms like Airbnb or manage your bookings the old-fashioned way (thanks Excel), your business is governed by specific rules.
2. Registering your business: an essential step
Why declare your holiday rental?
French law requires that you register your intention to rent out your property as a meublé de tourisme at the town hall. This enables the local authorities to monitor the development of the tourist offer and ensure that your activity complies with urban and tax standards.
How do I take this step?
- Fill in the Cerfa n°14004*04 form: a barbaric name for a simple formality!
- Drop this form off at your local town hall. If you’re lucky, some communes even accept online applications.
Once you’ve completed this step, you’ll receive a registration number. Please note that this number is often required to publish an ad on tourist rental platforms.
3. Comply with rental limits for principal residences
In France, if you rent out your main residence (the place where you live for at least 8 months of the year), a strict rule applies: you can’t rent out more than 120 days a year. This ceiling is designed to protect the traditional rental market and avoid a long-term housing shortage.
What about second homes?
Ah, second homes, those little havens of peace! Rental of these properties is not subject to the 120-day limit, but may require prior authorization for change of use if you are in a city with a population of over 200,000 (hello Paris, Lyon, Marseille, etc.).
4. Tax standards: get your calculators ready!
Tourist rentals are not exempt from taxation. You have to declare your rental income, even if your property is only rented out for a few days a year.
Which tax system to choose?
- Micro-BIC: Ideal if your rental income does not exceed €77,700 per year. You benefit from a 50% allowance for expenses.
- Actual system: More suitable for those who incur significant expenses related to their business (work, depreciation, etc.).
And don’t forget: above €23,000 in rental income per year, you could be considered a professional and will have to pay Social Security contributions.
5. Comply with health and safety standards
To offer your travelers a memorable (and safe) experience, your property must comply with certain safety and hygiene standards. Here are the essentials:
- Smoke detectors: Mandatory in all homes since 2015. Install them and test them regularly!
- Emergency exits: Make sure your tenants can evacuate quickly in the event of an emergency.
- Equipment in good condition: From electrical outlets to household appliances, everything must be in perfect working order.
- Impeccable cleanliness: A crucial point, especially since the health crisis.
6. Local regulations: a potential headache
Some cities have introduced additional rules to regulate tourist rentals. For example, Paris requires a registration number and imposes restrictions on second homes. Other towns, such as Nice or Bordeaux, may limit the number of days or require specific compensation.
Tip for staying informed:
Check your local council’s website regularly or contact their housing department for the latest information.
7. Tourism rental platforms: partners or accomplices?
Platforms such as Airbnb, Booking or Abritel have simplified the process of bringing owners and travelers together. But they don’t exempt you from your legal responsibilities. Since 2020, these platforms have had to automatically transmit the amount of your rental income to the tax authorities. So there’s no need to play hide-and-seek with the taxman!
8. Watch out for penalties!
Failure to comply with the rules can result in severe penalties. For example:
- A fine of up to €50,000 for undeclared rentals in a commune where registration is compulsory.
- Tax penalties for undeclared income.
In short, it’s best to play by the rules to avoid unpleasant surprises.
9. Bonus: the benefits of compliance
Respecting the rules may seem tedious at times, but it also has its advantages:
- Greater trust from tenants, who appreciate transparency.
- Peace of mind for you, away from administrative and legal hassles.
- Enhance the value of your property, thanks to professional management.
Tourist rentals can be an excellent source of income, but they must respect a precise legal framework. By following these rules, you can guarantee your tenants a pleasant experience while protecting your interests. So, are you ready to welcome your next travelers in the best possible way? Don’t forget to check regularly for changes in legislation, as the tourist rental sector is constantly evolving.