Everything that will change for “AIRBNB Rentals” from January 1, 2025
New French Furnished Rental Law (Loi Le Meur): Why Hiring a Professional is More Essential Than Ever
The recent legislative reform on short-term furnished rentals introduces significant changes that directly impact property owners. As a specialized agency in seasonal rental management, we have analyzed the four key aspects of this new law. These changes highlight the growing importance of partnering with a professional to navigate this evolving landscape with confidence.
The Four Key Aspects of the Reform
- Extension of the Energy Performance Diagnostic (DPE)
- Increased Powers for Mayors
- Simplified Regulation by Co-Ownerships
- Revised Taxation of Rental Income
1. Extension of the Energy Performance Diagnostic (DPE)
The DPE, a key tool for evaluating a property’s energy efficiency, is becoming mandatory for any change of use, except for primary residences and overseas territories.
New Requirements:
- For new rentals:
- By 2025: Minimum DPE rating of E.
- By 2034: Minimum DPE rating of D.
- For existing rentals:
- Compliance required (DPE rating between A and D) by 2034.
Key Takeaway: If your secondary home is rated F or G, you will no longer be able to obtain a rental permit without making the necessary upgrades. Anticipating these renovations is critical. Our team offers audits (based on your DPE) to help you quickly and efficiently make your property rental-ready. Contact us today!
2. Increased Powers for Mayors
Local authorities now have enhanced tools to regulate short-term rentals.
New Measures:
- Intermediary Responsibility: Agencies and concierge services can face fines of up to €100,000 for non-compliance.
- Mandatory Registration: A national online registry will be operational by May 2026.
- Stricter Penalties:
- Up to €10,000 for failure to register.
- Up to €20,000 for false declarations.
- 90-Day Limit per Year: Starting in 2025, short-term rentals of primary residences may be limited to 90 days annually (currently 120 days).
Key Takeaway: Administrative obligations are becoming increasingly complex, with severe financial penalties for errors. Our team can provide a detailed assessment of your situation, guide you through compliance requirements, and manage the necessary steps on your behalf. Reach out to us for assistance!
3. Simplified Regulation by Co-Ownerships
Co-ownerships now have easier means to regulate or restrict short-term rentals.
New Rules:
- Existing Buildings: Rental rules can now be modified with a two-thirds majority vote (instead of requiring unanimity).
- New Buildings: Co-ownership regulations must explicitly state whether short-term rentals are allowed or prohibited.
- Increased Transparency: Owners must inform the co-ownership of their rental activities, which will be discussed at the general assembly.
Key Takeaway: Renting a property within a co-ownership is becoming more challenging, with a higher risk of restrictions imposed by your neighbors.
4. Revised Taxation of Rental Income
The taxation of furnished rental income has also been revised:
New Tax Rules:
- Non-Classified Properties: Tax deduction reduced to 30%, capped at €15,000 per year.
- Classified Properties and Guest Rooms: Tax deduction reduced to 50%, capped at €77,700 per year.
Key Takeaway: The reduced tax advantages for non-classified rentals make property classification even more valuable. Contact us for assistance!
Why Hiring a Professional is More Crucial Than Ever
These new regulations add significant complexity to the management of short-term rentals. From anticipating energy upgrades to handling administrative and tax requirements, as well as complying with local regulations, managing everything on your own—or with an inexperienced provider—has become increasingly risky.
Our Agency Offers:
- Expert guidance to ensure your properties meet all compliance standards.
- Comprehensive management of administrative and legal procedures.
- Optimized strategies to maximize your rental income, even in this challenging regulatory environment.
By entrusting your property to a professional agency like ours, you gain not only peace of mind but also long-term value for your investment.
In light of this new law, it is essential to anticipate and adapt to the increasing demands of short-term rentals. Contact us today for personalized support tailored to your needs. Together, we’ll make your investment a lasting success!
Contact us
A Promising Future for Short-Term Rentals
Despite stricter regulations, the short-term rental market in France remains highly attractive. Tourist demand is strong, and travelers continue to favor furnished accommodations for their flexibility and authenticity.
By collaborating with a professional rental management agency, you gain invaluable expertise to navigate these changes. Optimized management ensures compliance with new obligations, maximizes rental income, maintains steady occupancy rates, and delivers high-quality service to tenants.
Take advantage of these changes to thrive in this dynamic market!
Contact us today to learn more about how we can manage your vacation home with excellence.