What should we know about seasonal rental?
According to the Tourism Code, seasonal rentals correspond to "furnished villas, apartments, or studios, for the exclusive use of the tenant, offered for rent to a transient clientele who makes a stay characterized by a rental by the day, week or month, and who does not elect domicile there".
Which seasonal rental lease?
Unlike conventional residential leases, subject to the law of 6 July 1989, seasonal rentals are governed only by the Civil Code (Article 1713 et seq.).
The duration, price and conditions of the civil code lease are freely set by both parties. This type of lease is very often used on properties considered "atypical" with for example a beautiful view, a large balcony, a large area, etc.
Namely:
The seasonal lease must contain:
> The inventory of fixtures of entry and exit must be carried out in the presence of the lessor (or his representative) and the tenant.
> Several documents must be attached to the lease agreement:
The duration, price and conditions of the civil code lease are freely set by both parties. This type of lease is very often used on properties considered "atypical" with for example a beautiful view, a large balcony, a large area, etc.
Namely:
- The lease cannot be signed for more than 90 days.
- The lessor may indicate a maximum number of occupants allowed.
- The landlord has the right to prohibit a pet
- The landlord does not have the right to oblige the tenant to take out insurance
- Seasonal rentals as furnished rentals must meet certain requirements. Thus, the accommodation must have the mandatory equipment in a furnished property.
The seasonal lease must contain:
- Information about stakeholders (name, contact details, etc.)
- The exact duration of the rental (with arrival day and departure day). The tenant simply leaves the premises on the end date of the lease, without having to send a letter of notice
- The characteristics of the accommodation (address, surface area, full description, services available (example: swimming pool, parking)). The lessor must attach information to demonstrate that it complies with the security requirements.
- The price and payment conditions of the rental
> The inventory of fixtures of entry and exit must be carried out in the presence of the lessor (or his representative) and the tenant.
> Several documents must be attached to the lease agreement:
- An energy performance diagnosis (DPE) if the total duration of seasonal rentals in the accommodation is greater than 4 months per year
- A state of risks and pollution
- A statement of the risks of exposure to lead (CREP) for dwellings built before January 1, 1949
What regulations for a seasonal rental?
The seasonal rental contract must mention:
The deposit
They do not definitively bind the tenant or the lessor. They can be kept by the lessor in case of cancellation.
They must be returned twice by the lessor who renounces the rental (Article 1590 of the Civil Code).
The deposit
When the sums paid have been stipulated as a deposit by the rental agreement, this deposit definitively binds the lessor and the tenant.
The tenant may be obliged to pay the full rent in case of cancellation.
In the event of a dispute before the civil court, the tenant can only be exempted from paying the entire rental if he demonstrates that he was forced to terminate due to force majeure.
> The rules to respect in seasonal rentals
With regard to seasonal rentals, two main legal statuses are possible:
As it is a particular type of furnished rental, furnished rentals are part of industrial and commercial profits (BIC). Therefore, in seasonal rentals, taxation is done at the time of the annual income tax return.
It is necessary to declare rental income through form 2042 C-PRO.
Depending on the situation, you will need to check the box:
- The price and terms of payment (including deposit or deposit).
- The estimated amount of the tourist tax. When the accommodation is rented via an online booking site, the tourist tax is collected directly by the website which transfers it to the municipality concerned.
- The consequences of cancelling a reservation.
- The rules concerning the security deposit and the inventory of fixtures (The law does not regulate the security deposit, but the amount of the deposit is generally 20% or 30% of the total amount of the rent. The deadline for return is 3 months after the departure of the tenant).
The deposit
They do not definitively bind the tenant or the lessor. They can be kept by the lessor in case of cancellation.
They must be returned twice by the lessor who renounces the rental (Article 1590 of the Civil Code).
The deposit
When the sums paid have been stipulated as a deposit by the rental agreement, this deposit definitively binds the lessor and the tenant.
The tenant may be obliged to pay the full rent in case of cancellation.
In the event of a dispute before the civil court, the tenant can only be exempted from paying the entire rental if he demonstrates that he was forced to terminate due to force majeure.
> The rules to respect in seasonal rentals
With regard to seasonal rentals, two main legal statuses are possible:
- Non-professional furnished rentals (LMNP) if the annual rental income is less than € 23,000
- Professional furnished rentals (LMP) in other cases
As it is a particular type of furnished rental, furnished rentals are part of industrial and commercial profits (BIC). Therefore, in seasonal rentals, taxation is done at the time of the annual income tax return.
It is necessary to declare rental income through form 2042 C-PRO.
Depending on the situation, you will need to check the box:
- 5ND for classic vacation rentals;
- 5NG for classified vacation rentals.
What advice for owners wishing to use seasonal rentals?
Use an agency to manage your vacation rental so that it takes care of time-consuming tasks (advantage: no need to travel):
- Create the ads
- Manage bookings
- Respond to customers
- Prepare the property
- Welcome
- Property maintenance
Equipping the property for a seasonal rental:
Equipment that could make all the difference:
- Wifi equipment
- The integrated kitchen
- The parking space
- The workspace
- The washing machine
- The dryer
How to rent your property in seasonal rental?
This type of rental is concluded:
This type of rental is short-term. It can be the rental of a main residence or second home.
Please note :
If you wish to rent your property for a period of more than 120 days / year, the accommodation will no longer be considered as a main residence, but as a second home. This is why it will be mandatory to go to the town hall to declare it.
At the time of registration, the JORF decree of 30 April 2017 specify the information to be provided by the lessor:
In some municipalities, landlords must also apply for a change of use permit (the change of use is temporary. At the end of this one, the dwelling returns to its main use of conventional dwelling.). This is particularly the case for the city of Paris.
Note : The city of Paris is not currently concerned by the obligation of the rental permit, but this is the case for many municipalities in Ile-de-France.
- through a real estate agency
- from individual to individual
- via rental platforms such as Airbnb (or Abritel, Amivac, Homelidays, etc.)
This type of rental is short-term. It can be the rental of a main residence or second home.
Please note :
If you wish to rent your property for a period of more than 120 days / year, the accommodation will no longer be considered as a main residence, but as a second home. This is why it will be mandatory to go to the town hall to declare it.
At the time of registration, the JORF decree of 30 April 2017 specify the information to be provided by the lessor:
- Full identity of the registrant
- The address of the dwelling and the invariant number of the housing tax
- The status of the dwelling (principal residence or not)
- The periods during which the declarant wishes to rent his property
- The number of rooms and beds
- The level of classification of the quality of furnished tourism
In some municipalities, landlords must also apply for a change of use permit (the change of use is temporary. At the end of this one, the dwelling returns to its main use of conventional dwelling.). This is particularly the case for the city of Paris.
Note : The city of Paris is not currently concerned by the obligation of the rental permit, but this is the case for many municipalities in Ile-de-France.
How to prepare your home for seasonal rental?
Preparing your accommodation for seasonal rental is:
Namely:
> The guide to real estate diagnostics
- Free up storage
- Secure all personal belongings in key closets
- Maintain the property regularly
- Do maintenance at least once a year (interior and exterior painting, replacing bed linen, services and floor mats, overhauling all electrical appliances, heating, air conditioner, water heater, etc.)
Namely:
- Electrical installations must comply with standards.
- The installation of a carbon monoxide detector is recommended.
- The fire safety standard requires the presence of a smoke detector (DAAF) in the dwelling.
- The NF P01-012A standard requires the presence of guardrails on windows, stairs, balconies to fight against accidents.
- If there is a swimming pool, it is mandatory to install a security device (pool barrier or pool alarm).
> The guide to real estate diagnostics
Ce qu’il faut retenir :
- Seasonal rentals are governed only by the Civil Code.
- The duration, price and conditions of the civil code lease are freely set by both parties.
- A deposit and deposit must be paid.
- This type of rental is concluded: through a real estate agency, from individual to individual or via rental platforms such as Airbnb
- If you wish to rent your property for a period of more than 120 days / year, the accommodation will no longer be considered as a main residence, but as a second home. This is why it will be mandatory to go to the town hall to declare it.
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Posted on 20/06/2023 by
Andy LECUYER
