Renting your property on airbnb: things to know!

Supplementary income or a genuine livelihood, renting a furnished property on airbnb can prove a winning financial bet: during summer 2019, no fewer than 8.5 million French people booked through this platform. But before you begin, a certain amount of information must be known and verified in order to proceed correctly!

The basics of the practice, governed by law

Anyone can rent their property to temporary guests for short-term stays. No authorisation is required and no declaration needs to be made. However, several elements restrict this apparent freedom.

The legislative framework

For around ten years, occasional private property rentals (via airbnb in particular) were not subject to any particular constraints. With the explosion in this practice, the legislator intervened to protect both owners and tenants.

Article 145 of the ELAN law no. 2018-1021 of 23 November 2018 established the legal framework. Thus, the so-called tourist furnished rental is defined as “furnished villas, apartments or studios, for the exclusive use of the tenant, offered for rent to temporary guests who do not establish their residence there and who stay characterised by rental on a daily, weekly or monthly basis”

The rules to follow

To rent your main residence, the authorised number of rental days is set at 120 per year, with each tenant’s occupation not exceeding 90 days. In municipalities with more than 200,000 inhabitants, it is also necessary to make a registration application.

The Alur law no. 2014-366 of 2014 complicates matters with the distinction between main residence and secondary residence. To be considered a main residence, it must be occupied for 8 months of the year. A secondary residence can therefore only be occupied for 4 months of the year, i.e. 120 days.

If the property is rented as a secondary residence, an initial restriction of 120 rental days applies, plus an obligation to make a declaration to the town hall. In a municipality of fewer than 200,000 inhabitants, a change of use of the premises must also be carried out.

Ultimately, the initial principle of being able to rent without prior declaration only applies in practice to renting a main residence in a town of fewer than 200,000 inhabitants.

Things to consider before posting your rental advertisement

Once you have declared your intention to rent, if applicable, you can move to the next step: posting an advertisement on the airbnb website and receiving your first reservation. But have you thought of everything?

Your property is in a co-ownership scheme

The co-ownership regulations set a general purpose for the building, which must not contradict your rental offer. In particular, it may contain a bourgeois residence clause limiting occupation to residential use and professional practices, or an exclusive bourgeois residence clause only authorising residential use. In this case, you may still request a change of use at a general meeting.

You are a tenant of the property

If you wish to sublet a property where you are a tenant, always within the limit of 120 days per year, you must obtain written authorisation from the owner. If not, the landlord may seek justice to recover the income from the rental and claim damages in addition.

Furthermore, your rate must not exceed the pro-rata rent you pay to your owner.

Check the particular conditions of your municipality

Beyond the thresholds defined above, the law allows any municipality, regardless of its size, to institute a declaration obligation at the town hall if it wishes. A registration number must then be obtained before any rental. This is the case in Paris, Bordeaux, Biarritz or Nice, for example.

Be an exemplary landlord to ensure lasting success

There are countless disputes related to airbnb rentals, so it is commendable to protect yourself by taking a few standard precautions.

Present your property correctly

There is no point in passing off your city apartment as a mountain chalet, because disappointment will quickly appear in the reviews left for your offer, and potential tenants will avoid you.

Take good photos, list the equipment available and be precise (and honest) about the property’s location.

Do not hesitate to refuse a “suspicious” tenant

The site has implemented a “host guarantee” which can compensate you up to £800,000 in the event of damage to your property. However, if the contact is not reassuring or if you doubt the purpose of the rental, you are fully entitled to refuse the stay.

Get paid via the platform

Even though airbnb takes a 3% commission (plus VAT), payment is secure and funds are transferred the day after the tenants’ arrival. A way to protect everyone against false listings on one side and non-payment on the other.

Renting via the airbnb platform remains fairly simple provided these rules are followed and your property is insured accordingly. The supplementary income is welcome, however do not forget to include it in your tax return. All that remains is for you to write the most attractive advertisement!