Airbnb 2024: What the new regulations change for short-term rentals

A Tense Context: Prioritizing Long-Term Rentals for Residents

Faced with a shortage of affordable housing for local residents, the "Anti-Airbnb" law, spearheaded by MP Annaïg Le Meur and supported by Housing Minister Valérie Létard, aims to rebalance the rental market. By targeting short-term rental platforms like Airbnb, this law seeks to make the market more favorable to long-term rentals. This measure is particularly crucial in so-called "high-demand" areas, where available housing for residents has become scarce.

Key Tax Measures: Reduced Benefits for Tourist Rentals

The reform significantly reduces tax benefits for furnished tourist rentals. Key provisions include:

• Tax deduction reduced from 50% to 30% for non-classified rentals: Starting in 2025, owners of non-classified furnished rentals will lose part of their tax advantage. This rate is now aligned with the 30% deduction for long-term rentals.
• Rental income cap: The annual income cap to qualify for this tax deduction is reduced to €15,000, down from €77,700 previously.

The goal is to encourage landlords to rethink their strategies and consider long-term rentals as a more viable alternative.

Classified Rentals: Tax Benefits Also Adjusted

Classified tourist accommodations, recognized for their comfort, will also see tax adjustments:

• Tax deduction reduced from 71% to 50% on rental income for classified properties.
• Lower income eligibility cap: The 50% deduction is now limited to landlords earning less than €77,000 in annual rental income, down from €188,700 previously.

These adjustments modify the tax advantages for classified rentals, encouraging property owners to weigh the benefits of long-term rentals.

Energy Standards: A Key Issue for Property Owners

In addition to tax changes, this law requires property owners to comply with strict energy standards:

• Ban on renting "energy-inefficient" properties: Starting in 2025, properties with a G rating can no longer be rented as furnished tourist accommodations. This restriction will extend to F-rated properties in 2028 and E-rated properties in 2034.
• Ten-year compliance period for existing rentals: Owners of F- or G-rated properties will have ten years to improve their properties’ energy performance.

For landlords, these requirements necessitate planning for energy renovation costs, an essential consideration for those wishing to continue their furnished tourist rental business.

Local Quotas and Reduced Rental Duration

Municipalities will now have the power to impose quotas to limit the number of tourist rentals in their areas. This authority will help maintain a balance between primary residences and tourist accommodations. Additionally, the law reduces the maximum annual rental period for primary residences from 120 to 90 days, further restricting short-term rental opportunities.

Impact on Property Owners' Strategies

This new regulation forces landlords to rethink their rental models. At Deplanche Immobilier, we closely monitor these changes to support our clients in their rental strategies. With tax adjustments, energy renovations, and new quotas, property owners should now assess the potential of long-term rentals, which could prove to be more stable and advantageous in the long run.