Definition of short-term rental:
Short-term rental refers to the rental of furnished accommodation for a period ranging from one night to several months. It is intended for people who are «passing through» and do not intend to take up permanent residence there.
Short-term rentals are therefore an alternative to traditional hotels or standard property rentals. They are aimed at business travellers, holidaymakers and people in transition (e.g. those moving house).
The short-term rental market in France
Also known as seasonal rentals, this form of private rental has been hugely successful in recent years! This popularity can be explained by the success of online rental search platforms such as Airbnb, as well as France's undeniable appeal to tourists, both locally and internationally. Unsurprisingly, France ranks second in the short-term rental market, behind the United States! (source: Les Echos)
With more attractive rates than traditional hotels, a wide variety of accommodation types and now concierge services, short-term rentals are increasingly appealing to travellers regardless of the type of stay.
The legal framework for short-term rentals
Short-term rentals are subject to specific regulations. This refers to the rental of a furnished property for a maximum, non-renewable period. In accordance with the Hoguet Act of 2 January 1970, The duration of a seasonal rental cannot exceed 90 days. However, for cities with more than 200,000 inhabitants and municipalities located in departments 92, 93 or 94, the maximum duration is set at 120 days per year!
Short-term rentals are not subject to the same rules depending on the type of residence:
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Primary residence
As the owner of a primary residence, the landlord may rent out their property for up to 90 to 120 days per year without having to take any specific steps, except possibly filing a declaration with the local council. It is possible to rent out your primary residence beyond this limit if:
- the owner can prove an absence of more than 4 months during the year due to health issues, professional reasons or force majeure.
- The owner rents out a private room in their main residence; guest rooms are not subject to the 120-day limit.
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Secondary residence
Any property occupied for less than 8 months per year is considered a second home. The owner-lessor of a second home may, within the framework of short-term rentals, rent out their property by requesting a change of use. In the context of a commercial activity, the property is then considered commercial premises.
A very specific tax system
In the context of short-term rentals, the rented property is then a furnished rental. From a tax perspective, rents and charges received in the context of a seasonal rental are taxed in the category of industrial and commercial profits (known as the BIC regime) or according to the actual regime.
Whether it's for your primary or secondary residence, you can choose between non-professional furnished rental (LMNP) or furnished business rental (LMP). Explanations:
Non-professional furnished rental (LMNP)
- Your rental income must not exceed €23,000.
- You must choose a tax regime for filing your tax return. Depending on your situation, you have two possible tax regimes to choose from: the actual regime or the micro-BIC regime.
Professional furnished rental (LMP):
If you choose this option:
- Your rental income must exceed €23,000.
- Rental income must account for more than 50% of your household's income.
- You must declare the start of your business activity using the Cerfa P0i form, i.e. Cerfa form number 11921, and send it to your Public Finance Centre where your property is located within a maximum of 15 days after the start of your activity. However, it is not necessary to register with the business formalities centre, as the taxpayer is not subject to social security contributions (source: www.lmnp-loueur-meuble-non-professionnel.fr)
Short-term rental: expenses to consider
You may also be liable for the Cotisation Foncière d’Entreprise (CFE) business property tax. This has replaced the business tax and applies to landlords renting out furnished accommodation that is not their personal residence (property used exclusively for rental investment).
And the tourist tax. This can be collected from travellers (tourist tax at actual cost) or be paid by landlords, who then pass it on to their customers. Its purpose is to finance municipal expenses related to tourist traffic and the protection and maintenance of tourist areas. Its price varies from €0.2 to €4 per night per person. It depends on the type of accommodation and the host municipality. It is clearly displayed on the premises (at the lodging or property owner's, in the hotel) and must appear on the invoice paid by the traveller.
In addition, as a landlord, you must pay the operating costs of the rented property, such as condominium fees, heating, electricity, water, Internet, insurance, property tax, etc.
If this seems like too much work, consider rental management. Professionals in the field can assist you with short-term rentals and offer advice. Mana Homes will give you a whole new perspective on renting!
The profitability of short-term rentals
Rental profitability is particularly attractive for short-term rentals. Provided that you choose the right status and management method for the rental income received, as explained above.
What are the advantages of choosing short-term rental?
- The rent per night is generally higher than monthly or yearly rent.
- The risk of non-payment or late payment is virtually zero thanks to online platforms where you can pay your bills.
- With short-term rentals, the property is cleaned and maintained more regularly than with a «traditional» rental.»
- In the case of a mortgage taken out to finance your property, renting it out allows you to gradually recoup the money needed to repay it.
- Attractive tax system
Short-term rental: professional help
Renting out your property for seasonal lets is made easier by the platforms available. But day-to-day management takes time and commitment. Even more so when you're working remotely. Why use a professional to manage your rental property? An expert in property rental management for short-term lets, Mana Homes takes care of all rental-related tasks on behalf of a landlord. At Mana Homes, this expertise is recognised in 3 key areas of intervention in the rental management of exceptional properties: the marketing the property, the operations management and concierge services.
Want to find out more about our rental management services? We have listed 6 reasons to convince you to choose this option for your short-term rental property!
Mana Homes, a provider of exceptional short-stay and holiday rentals, has listed 6 reasons to convince you to opt for rental management. Discover them below and free yourself from your obligations!
Choose Mana Homes for your holiday rental in Chamonix
When it comes to seasonal and short-term rentals, call on the expertise of professionals such as Mana Homes to advise you and help you manage the rental of your property on your behalf. But also for its upkeep and maintenance. For travellers, it's the assurance of top-of-the-range concierge services, including the reservation of our exceptional properties. So don't wait any longer, and put your trust in a third party you can trust in the rental industry, from a management or holiday point of view.
LET'S CHANGE THE WAY YOU LOOK AT RENTAL...
