How to limit the costs and risks for vacation rentals in France ?
Hospitality is good! The annual income pocketed by the lessers or tenants who offer accommodation to tourists is around € 2,000 per year for 26 nights. A recent study even showed that in Paris, these rentals reported 2.5 times more than a conventional lease. How to rent his or her property, an increasingly monitored activity, while respecting the rules?
The seasonal rental activity falls within the commercial field. It is to be declared to the town hall. In Paris and the cities of over 200,000 inhabitants, you must obtain authorization for the property use changes.
Tenants, meanwhile, escaped for the moment, a measure of law which aimed to monitor and control through the Internet via the platforms, whether they have the owner’s permission to sub rent their housing. Unless you have the authorization, this practice is strictly prohibited and exposes fraudsters to the non-renewal of their lease.
Adverts: HomeAway or Airbnb?
With an excellent reputation, Airbnb is the most visited platform for vacation rental.
The pro: a large attendance which allows faster demands.
The con: its high price: a 3% commission on rents.
Abritel is a less known and visited platform. But it generates an important revenue, the average rental period is longer and the ad is charged only € 249 per year (excluding online payment, on which the site fee can be from 1.7 to 2.7% of the rental).
Rates: adjust your renting price
Do not hesitate to resort to comparators such as Frogly.
This free website permits you to analyze the potential of your home for maximum rental rate, and that, up to 90 days in advance. Charged 9.90 euros per month, the service will quickly pay for the best placed apartments.
Thanks to that you can increase your prices based on events and competitions such as the Euro or Roland Garros.
Options: Show your property in its best light
“A traveler looks at the photos first, then the comments and, ultimately, the price” Sarah Roy, spokeswoman for Airbnb.
Put the odds on your side. Call on a professional photographer to shoot your property. Users only have the means to compare and make the choice.
Breakage or theft : all is not covered
For damage caused by the tenant, you can cash the bail he paid. But in case of water damage or fire for example, it requires that your insurance covers the “vacation rentals” activity to be compensated. If this is not the case (or so in addition to the benefits of your insurance), you can use the warranty included in the commission of the chosen rental platform . Thus, Airbnb is expected to cover up to € 800,000 of damage. However, understand that the platform requires you to file a complaint from 260 € of estimated damage.
Getting a compensation in case of theft by the tenant is not an easy task, most contracts requiring evidence of tampering …
Well, except to sign a so-called specific guarantee “use of the tenant,” nothing and nobody will protect you from a tourist who will pursue you in court for pecuniary enjoyment.
Concierge: Useful if you rent a lot
When the number of rentals are increasing, ensuring the key handover, home-cleaning, welcoming or providing breakfast quickly becomes daunting. In case you can’t do it yourself, you can entrust your property to a traditional real estate agent or use the new platforms of rentals concierging such as Bnbsitter or Welkeys.
Cancellation: do not overdo it
A disclaimer on your part will require you to repay the tenant.
On Airbnb, if canceled within seven days, it will cost you € 88 in penalties and a drop in the results pages. You should then use the “instant booking” service that allows to cancel without penalty up to three times per year.
If your tenant cancels his stay?
The traditional view is that you keep the deposit (25% of the rental). In case of last minute, you can claim the full price. On Airbnb, triggering the compensation will depend on the option chosen. If the “flexible” option does not guarantee full payment in case of cancellation less than one day, the “strict” option on promises to less than seven. These options are very deterrent against potential tenants. It is advised not to activate it unless demand is high in your area.
Rent a basement or parking:
These other square meters will enrich you. Whether to rent a cellar (80 to 150 euros per month for 10 square meters in a large city, 35 to 40% less in a small) or parking (up to 120 euros), flat Platforms such as parkadom or zenpark are multiplying.