Roche & Cie

Furnished rentals (Airbnb): reminder of the regulation in Lyon

19 Feb 2018

Furnished rentals (Airbnb): reminder of the regulation in Lyon

Since February 1st, 2018, leasing a home through rental platforms such as Airbnb, Abritel, etc… in the city of Lyon, is subject to new standards.

As a reminder, such rental platforms were created as part of an ambition of a collaborative economy. They offer Internet users, the opportunity to rent their main residence during their absence.

Over times, this activity has become a mean of renting a home, in the short term, in a sustainable way. However, this new activity of individuals is an unfair competition to traditional hotels, while escaping certain taxes, including the tourist tax.

As a result, and to face this competition, Airbnb oversees the collect of this tax paid by the hirers, and the reversion to some communes (large metropolises and tourist zones).

The decree of April 2017 provides, for cities with more than 200,000 inhabitants and tourist areas that wish, the possibility of tightening the rules for renting furnished short-term.


The new rules

The main measure forces owners to rent a property on the short run to register the dwelling at the town hall to obtain a registration number. This number must be visible on every online ad on the platforms and will allow municipalities to control the duration of leasing of property.

The rental of the main residence

In theory, to rent your main residence to a passing clientele, you do not have to apply for authorization. However, some large cities, to prevent this phenomenon from spreading, begin to set limits.

In Lyon, the rental of the principal residence must not exceed 120 days per year according to the Alur law in force.

The rental of the second home

On the other hand, renting a second home can be more complicated.

As a first step, you must declare, at the Town Hall, the property furnished as housing intended for tourism. A declaration form must be completed and sent to the mayor. In addition to the address and the number of rooms and beds of the accommodation, you must indicate the periods during which you intend to host tourists.

After doing this, you can also apply for permission to change the temporary use of housing at the town hall. (more information here)

Note that the authorization for short-term rental is limited in time and will not exceed 9 years.

In addition, renters offering properties of more than 60 m2 will have to compensate this rental by one of a property of equivalent surface, on the classical market and in the same district.

For SCIs for example, this compensation is mandatory from the first sqm regardless of the size of housing.

Focus on the clearing obligation

If you wish to rent your principal residence for a period exceeding 120 days per year or your second home, you are obliged to compensate for it by another dwelling.

In fact, municipalities consider that a furnished apartment removes a main residence from the housing stock. They then ask the lessors to counterbalance this loss by creating another home.

Two solutions are available for you:

  • propose to transform non-habitable premises belonging to you (businesses, offices) into housing;
  • buy a compensation title from a third party (housing company, for example) with this type of premises to convert them into housing.

To find out more about the existence of these transformable premises, the lessor can directly contact the municipal services, a specialized company or a social lessor.

In any case, the operation is expensive. Prices are negotiated between the buyer and the seller of the premises, without a fixed rate. For example, in Paris, on average, there is a little more than 1,500 € per sqm and up to 3,000 € / sqm in the most exclusive districts.

Note that in Lyon, this rule applies, according to the metropolis, the hyper Centre. This measure concerns entirely the 1st, 2nd and 4th districts and parcels of the 3rd, 4th, 6th, 7th and 9th districts.

See the map below:

 

 

 

 

 

 

 

 

 

 


Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.