IN BRIEF
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There new regulations regarding the furnished tourist rentals is now in force. It aims to reduce the tax advantages from which owners benefit, particularly those of furnished unclassified. The tax allowance was lowered by 50% has 30%, while classified furnished accommodation and guest rooms are also experiencing similar changes. In addition, a new condition stipulates that furnished accommodation must not be thermal strainers, in an effort to protect the environment and improve the quality of housing. These measures aim to rebalance the rental market and to facilitate access to housing for residents.
France recently updated its regulations regarding rentals of furnished tourist accommodation, a measure which significantly impacts owners and tenants. The objective of this new law is to further regulate the rental market, particularly in the face of the growing success of platforms like Airbnb. Indeed, with significant changes to tax reliefs and housing regulations, it is essential to stay informed about the implications of these decisions. This article will guide you through the main aspects of this new legislation and its consequences on the furnished market.
What are the New Regulations?
The New Regulations for rentals of furnished tourist accommodation, also called the Echaniz-Le Meur Law, were recently adopted to adapt to market developments. In a context where demand for short-term housing has exploded in recent years, this law aims to reduce the imbalances observed in the rental market. Owners must therefore familiarize themselves with these new rules in order to better comply with them.
Objectives of the Regulation
The main objectives of this regulation are to protect access to housing for residents while preventing abuses linked to seasonal rentals. Strong competition between furnished tourist accommodation and traditional residences has led to an increase in rents and a reduction in the supply of housing for permanent residents. The new law therefore attempts to restore this balance.
The Main Changes
Among the notable changes brought about by this regulation, we find in particular the reduction of tax allowances for unclassified furnished tourist accommodation. In fact, the reduction, which was previously 50%, will now be reduced to 30%, capped at €23,000 of annual revenue. This means that owners of non-labeled furnished accommodation will now have to pay more taxes on their rental income.
The Consequences for Owners
With the tax adjustments imposed by law, owners of furnished accommodation who have not applied for a label can expect significant changes in their profitability. Owners must now assess whether they wish to invest in the classification process to benefit from a more advantageous reduction, which remains set at 50% but with a higher ceiling.
Financial Impacts
The change in tax allowances directly affects the return on investment of owners. For those who do not plan to invest in an official ranking, this new reduction could reduce their profit margins. Owners will therefore have to strongly consider whether they wish to maintain their short-term rental business, especially in areas where regulations are tightening.
Energy Compliance Obligation
Another important aspect of this new regulation is the ban on renting housings called “thermal strainers”. In accordance with the legislation in place, any furnished tourist accommodation must comply with energy performance standards. This means that owners will need to invest in improving the quality of their homes in order to comply with these requirements.
Consequences for Tenants
Tenants will not be spared by this new legislation either. Indeed, the changes also aim to guarantee more accessible and better quality housing, thus aligning the conditions of seasonal rentals with those of traditional leases.
Access to Quality Housing
With regulations in place, tenants can now expect to rent accommodation that meets quality standards. This means they will be less likely to face problems such as poorly insulated homes or faulty installations. The regulations aim to establish a level of comfort and security for all tenants.
Reduction of Abuse and Illegal Practices
Another benefit for tenants involves a potential reduction in abuses related to illegal rentals. Thanks to the framework imposed by law, the control of seasonal rentals is becoming stricter. This promotes a fairer market for all players with legal housing.
How Can Owners Prepare?
Owners have a key role to play in adapting to these new regulations. It is crucial that they take the necessary steps to comply with new legislative expectations.
Housing Assessment
First of all, it is recommended to do a complete assessment of their home. This includes not only updating the classification, if desired, but also inspecting the energy efficiency of their properties. To ensure they meet required standards and avoid penalties, owners must act proactively.
Training and Information
Owners should also familiarize themselves with the new rules. Information sessions or specific training can be followed in order to fully understand all the obligations incumbent upon them under this new regulation.
In short, the New Regulations for Tourist Furnished Rentals bring with it a series of important changes that affect both owners and tenants. Whether in terms of taxation, rental conditions or energy obligations, this law requires special attention from all those who want to benefit from the boom in short-term rentals. The law aims to restore balance to the market while protecting the interests of the different players involved.
For more information on the tax consequences of the law, you can consult useful resources such as RMC Or Huffington Post. You can also find interesting opportunities by learning about new programs in Baillif and the administrative procedures necessary for the acquisition of real estate by consulting our resources, such as those on co-ownership agreements or investment criteria.
