Furnished tourist accommodation: the classification drawbacks to know

Furnished tourist accommodation has become a mainstay of the holiday rental market. Faced with growing competition, many owners are considering having their furnished tourist accommodation classified in order to gain visibility and credibility.

But behind the official stars and the reassuring image lie constraints, obligations and several drawbacks that are worth knowing about before you take the plunge. In this article, we take a detailed look at the drawbacks of classifying furnished tourist accommodation, the conditions to be met and the practical consequences for owners (don't worry, we'll keep smiling).

A quick reminder: what is classified furnished tourist accommodation?

Furnished tourist accommodation is a furnished property let on a short-term basis to a transient clientele. Classification is a voluntary process that awards the property between 1 and 5 stars, based on a national grid of criteria.

The classification is valid for 5 years and is based on an inspection visit carried out by an accredited body.

Strict conditions for classifying furnished tourist accommodation

A demanding grid of criteria

The classification of furnished tourist accommodation is based on a grid of more than 130 criteria covering:

• The comfort of the property
• The equipment available
• The floor area and layout
• The services offered
• Safety and accessibility

Every detail counts. A property can be charming, beautifully decorated and popular with guests, yet still fall short of the desired star rating because of one missing item of equipment or a floor area that is slightly too small.

Investment is sometimes required

To classify furnished tourist accommodation, owners often have to invest:

• In higher-quality bedding
• In additional furniture
• In specific items required by the grid

These outlays can quickly add up to a significant cost, with no guarantee of an immediate rise in bookings.

A burdensome administrative procedure

A detailed official visit

Classifying furnished tourist accommodation involves an on-site visit by an approved body. Every room is inspected, measured and checked.

An oversight or a non-compliance can result in:

• A lower star rating than expected
• A refusal to classify the property
• A chargeable follow-up visit

A classification to be renewed every 5 years

The classification of furnished tourist accommodation is not permanent. Every 5 years, the whole procedure has to be repeated:

• A new visit
• New fees
• New requirements, sometimes stricter ones

In other words, those stars need regular upkeep.

The financial cost of classifying furnished tourist accommodation

Classifying furnished tourist accommodation is not free. Depending on the body and the size of the property, the fee is generally between 150 € and 300 €.

On top of that, you may face:

• Works to bring the property up to standard
• Purchases of compulsory equipment
• Renewal fees

For some owners, particularly those with small furnished tourist properties, the return on investment can be slow, or even uncertain.

Increased tax and reporting obligations

A tax advantage under scrutiny

Classified furnished tourist accommodation benefits from a more generous tax allowance under the French micro-BIC scheme. But that advantage also calls for greater vigilance in the event of an inspection.

It is essential to:

• Comply strictly with the tax rules
• Keep your supporting documents
• Be consistent in your declarations

A tourist tax that depends on the classification

For a classified property, the tourist tax is a fixed amount per night and per person, which depends on the number of stars. For an unclassified property, it is a percentage (1 to 5%) of the nightly rate, capped at the rate applied to 4-star properties.

In practice, a 1 or 2-star classification often brings the tourist tax down compared with an unclassified property, especially when the nightly rate is high.

Conversely, a 4 or 5-star classification can push it up. So it all depends on the star level you are aiming for and on your nightly rates.

Less flexibility in managing furnished tourist accommodation

Once classified, furnished tourist accommodation must remain compliant with its star rating. That limits certain freedoms:

• You cannot remove a compulsory item of equipment
• Any changes to the property must follow the rules
• Adapting to a new clientele becomes more complicated

This rigidity can be restrictive for owners who want their offering to evolve.

Classifying furnished tourist accommodation is not always decisive

In practice, many guests give priority to:

• Customer reviews
• The location
• The photos
• The price

Unclassified furnished tourist accommodation with excellent ratings can sometimes perform better than a classified property.

Conclusion: should you classify your furnished tourist accommodation?

Classifying furnished tourist accommodation can make sense in certain cases, but it also comes with a number of drawbacks that should not be underestimated.

Technical constraints, costs, paperwork, less flexible management… classification is not always the ideal solution.

Before you get started, ask yourself the key question: is classifying my furnished tourist accommodation genuinely suited to my letting strategy? Because sometimes a property that is well maintained, well managed and very highly rated… shines brighter than an official star.