Rental special: 3 recipes for a good season

With 85 million visitors in 2018, France remains the world's leading tourist destination. Our country can count on this great asset to develop its real estate stock. Starting with its accommodation capacity, which must meet this huge demand. Alongside hotel and tourist rental professionals, private individuals also have their cards to play. The popularity of Airbnb-style furnished rentals is being confirmed among visitors, particularly in large conurbations and high-traffic destinations. Under these conditions, a property will be able to use its charm on the seasonal rental market. Whether it's a room in your main residence, a furnished apartment or a second home, there's no shortage of opportunities to enjoy a great season, as long as the rules of the game are respected. Here are 3 recipes that pay off!

1. The main residence

A room worth its weight in gold.
Space, a room to offer and a sense of hospitality are all you need to succeed. Don't forget to comply with the prescribed tax regulations, and you'll have a tempting formula if you decide to rent out a room in your principal residence.
The right formula? A solution that's becoming increasingly popular, especially in big cities where the rental market is under severe pressure. It's a way of life that's similar to sharing an apartment. Of course, this option is best suited to senior citizens whose children have left the family unit. It's a good way to enjoy the company of others, keep your big house busy and supplement your income.
However, you'll need to maintain a good relationship with your tenant, as you can only give notice when the lease expires.
Please note that the room must meet certain standards of decency: it must be at least 9 m2 with a ceiling height of 2.20 m, have a window, give access to a bathroom and be heated.
Rules to follow. The rental contract takes several forms, depending on the target audience:
- standard one-year furnished lease, renewable by tacit agreement for permanent tenants;
- nine-month non-renewable furnished lease for students;
- a one- to ten-month mobility lease for people needing temporary accommodation;
- or the new intergenerational cohabitation lease, provided the lessor is over sixty and the lessee under thirty.
As with rent from a furnished property, income from this type of lease must be declared as BIC (bénéfices industriels et commerciaux), and tax is calculated according to your tax bracket.
What kind of income? Although attractive from a tax point of view, this type of rental can escape taxation. The rented rooms must be the tenant's principal residence, and the rent (excluding charges) must not exceed a certain ceiling, which is updated each year:
- 187 € in Île-de-France,
- 138 in other regions.
Furnished rentals: what income should you declare?
All income you earn from renting out furnished accommodation, whether on a traditional basis or via a collaborative platform, is taxable and must be declared to the tax authorities.

2. Furnished tourist accommodation

A property that pays for itself!
Rather than committing to a long-term lease, why not consider a shorter rental? Of course, the management costs are high, but the income will be very satisfying. And, judging by the development of platforms such as airbnb, tourist interest in this formula is growing steadily. Let's take a look at the key points for successfully renting out your furnished property.
The right formula? The meublé de tourisme concept is based on a desire to offer quality services, primarily to holidaymakers. This is why the property can be classified as a "meublé de tourisme". Applications must be submitted to organizations accredited by COFRAC (the French Accreditation Committee) or listed on the "Atout France" website. The classification decision must be prominently displayed inside the property.
For management, it's best to contact a service provider, but they charge a commission of around 10-20%.
Rules to follow. A few precautions must be taken to manage your furnished accommodation. Starting with registration with the Centre de Formalités des Entreprises (Business Formalities Center) and declaration to the town hall to monitor tourist taxes, these steps must be taken when the business is launched.
Unlike conventional residential leases, seasonal rentals are not governed by a specific law, but by the general principles of the French Civil Code and the provisions of the French Tourism Code. A detailed contract with the tenant, including a description of the premises and equipment, is essential.
What's more, if it's the owner's main residence, the Elan law (law no. 2018-1021 of November 23, 2018) prohibits renting for more than 120 days a year.
What's the revenue? When it comes to rent, it all depends on where the property is located. In tense areas (in 28 conurbations), it must be set at the same price as that of the previous tenant. If the business generates more than €32,900, it is subject to a real income tax regime, and benefits from a 71% tax allowance. Below this figure, the business qualifies for the micro tax system, and a flat-rate allowance of 50% is applied. The operator then qualifies as a "loueur en meublé professionnel". Below €23,000, the operator is considered a non-professional lessor.
MEUBLÉ OR SECONDARY RESIDENCE?
In municipalities with a population of over 200,000, a change-of-use permit is required if the property is a secondary residence. In Paris, there are also compensation rules. These require the purchase of an equivalent - or even larger - surface area of commercial premises to be converted to residential use!

3. Gîte or chambre d'hôtes

An attractive business...
With a gîte or chambre d'hôtes, not only does the accommodation meet certain standards in terms of comfort and geographical location, but additional services are also provided to welcome guests. The most hospitable owners have everything to gain...
Formula. Whereas a gîte is considered a furnished holiday home, and as such constitutes an independent dwelling, a chambre d'hôtes must be located in the owner's main residence. For this type of rental, it is generally accepted that a room cannot be smaller than 12 m² for commercial reasons, even if regulations require a surface area of 9 m² (excluding sanitary facilities). As for the gîte, it comprises a living room, kitchen, bedrooms and sanitary facilities, and can accommodate from 2 to 14 people.
As 90% of bookings are made via the Internet, it's very important to think carefully about an online communication strategy (photos, quality texts, customer testimonials, social networks...). And don't forget to set aside time to welcome your guests.
Rules to follow. Apart from a simple prior rental declaration to be filed with the town hall, there is no regulatory obligation to open a gîte or chambre d'hôtes other than to respect the characteristics of decent accommodation.
If the taxable income generated by this activity exceeds €5,100, it is imperative that you register with the Régime social des indépendants (RSI) as a non-salaried worker (TNS). As with any commercial activity, the operator is required to register with the Trade and Companies Register (RCS), and to register with the Centre de formalités des entreprises (CFE).
How much do you earn? Gîtes de France estimates the gross annual income of a gîte operator at €10,700 and that of a chambre d'hôtes owner at €18,600; prices are completely free. In terms of taxation, these two types of accommodation are subject to the micro-business tax system (micro-BIC). B&B and gîte operators, provided they are classified as "meublé de tourisme", benefit from a flat-rate deduction of 71% below a threshold of €82,800 per year.
WHAT IS THE BUDGET FOR OPENING A Gîte?
According to a 2014 study by Gîtes de France, it costs an average of €91,000 to set up a gîte and €76,000 for a guest house. A significant investment, but one that can be reduced thanks to local grants and subsidies.

Christophe Raffaillac