Pierre and Julie own a large apartment in the center of Bordeaux. They'd like to rent it out for short stays to supplement their income. Do they need to take any formalities, or are they free to rent it out?
Julie
We've heard that there's change for this type of rental
Answer: Following the Decree of April 28, 2017, known as the AirBnB Decree, communes can require short-term renters (you will be considered as such) to register with the commune. A 13-character registration number is then assigned to each short-term furnished rental. This will be used to verify the number of overnight stays per year for a given property. Bordeaux having voted, on July 10, 2017, this obligation to register with the town hall, it will be a compulsory step for you, if you wish to rent out your apartment on seasonal rental sites such as Airbnb, HomeAway or Abritel. Concretely, a meublé de tourisme declaration form must be filled in and sent to the mayor. This form can be picked up and filled in at the town hall, or completed directly online, via the Service-public.fr portal: CERFA Form N° 14004*02.
Julie
We're going to rent for less than 120 days a year, do we need to register?
Answer: Yes, the benchmark is 120 days per year, i.e. 120 nights per year. If your main residence (you must live there for at least 8 months) is rented out for less than 120 days, you don't need to do anything. Unless you live in a commune where registration is compulsory, such as Paris, Bordeaux or Nice. In your case, there's no escaping it! Outside France, some cities have decided to set a much lower limit on the number of nights: 90 days in London or San Francisco, and only 30 days in New York.
Pierre
And if we place our ad directly on the Internet, what do we risk?
Answer: The website or real estate agency that acted as intermediary will have to withdraw your ad immediately. You'll be outlawed! Since the ALUR law, there have been agents from the Department of Housing who check whether rentals are legal. With the AirbNb Decree, controls have intensified. In the event of infringement:
- 450 € is the fine for simply not declaring the property for short-term rental (idem everywhere in France).
- 50,000 is the fine for infringement of the Code de l'urbanisme, if the property is rented out without authorization, which can be imposed on the owner (this fine was 25,000 euros and has just doubled in the last month).
- In addition, a daily fine of 1,000 euros per day and per square metre can be levied until the situation is rectified.
Beware of condominiums!
Whether it's your primary or secondary residence, if you're in a condominium, you'll need to check that your building's condominium regulations don't prohibit furnished tourist accommodation.
Julie
What do I have to declare to the tax authorities?
Answer: It's a question of additional income... Obviously, as the owner-lessor, you have to include the rents received in your income tax return. They are subject to the industrial and commercial profits (BIC) tax regime. In municipalities where this is the case, you must also charge your tenant a tourist tax, which you pay to your municipality. In most cities, Airbnb, for example, collects the tourist tax directly. This means you don't have to complete any formalities.