Seasonal rental rules are often poorly understood. Me Ribeiro, Real Estate Lawyer in Nice offers a summary of the rules that an individual must know to rent his home on Airbnb type platforms or Booking.
Renting furnished tourist consists of the rental repeatedly a furnished room for short periods to a clientele of passage that does not elect residence.
I The principle: the obligation to change the destination of the use of the property to rent furnished tourist
A) A property intended for tourist furnished rental must be the subject of a request for a change of use.
Traditionally, when you buy an apartment, it is used for housing. Thus, whether you occupy it as your main residence or you want to rent it following a lease (empty or furnished), the destination of the building is therefore “residential use”.
When you want your real estate investment to be solely for furnished tourist accommodation, you must apply for a change of use authorization.
In Nice, an application for authorization can be made by the owner of the house.
It is granted for a period of 6 years non renewable.
This authorization is temporary, nominative and attached to the person and not the local: it is therefore not possible to transmit it.
This first request for a change of use is not subject to the principle of compensation.
The authorization of change of use is issued by the Mayor of Nice according to the terms of the regulation voted in deliberation of the Metropolitan Bureau of December 21, 2018 that you can find here.
B) The second property intended for renting tourist accommodation must also be compensated.
In order to maintain an accessible housing offer for the inhabitants, the City of Nice imposes very strict conditions if you wish to have a second real estate intended for the seasonal hiring.
This principle is that of compensation: the compensation is mandatory from the 2nd housing put to rent by the same owner. Note that the principle is the same if you exceed the 6-year period mentioned above.
The principle of compensation consists in transforming premises that are not used for residential purposes into living quarters.
In concrete terms, you must be able to modify properties that are, for example, intended for renting offices in housing.
Needless to say, this condition is very difficult to respect for anyone who has a lot of real estate.
II The exception: the owner of his principal residence is exempt from the request for a change of destination
If you prove that the property is your principal residence, the authorization to change the use of residential premises is automatically authorized without having to request it.
There are two cumulative conditions:
- This must be your primary residence;
- The number of nights is limited to 120 days a year.
In addition, you are also not subject to the change of destination request if you only rent a room when the property is still your main residence.
From the moment it is your main residence and you do not exceed 120 days a year, the rule is very simple: you can freely put your property rental furnished tourist.
On the other hand, since it is no longer your main residence, the application for authorization is mandatory.
There are many pitfalls to avoid when it is not your primary residence or the property is purchased through a legal entity (SCI).
That’s why the help of a real estate attorney before investing is a great benefit to ensure the financial sustainability of your real estate investment.
Do not hesitate to contact Mr. RIBEIRO DE CARVALHO for any questions on this subject on his website.