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

New "Anti-Airbnb" law: Towards tighter controls on short-term rentals

Passed on 7 November 2024, the "Anti-Airbnb" law introduces a decisive turning point for short-term rentals in France. This legislation imposes new restrictions on owners of furnished tourist accommodation, along with significant tax and environmental measures. The aim is to encourage long-term rentals, particularly in areas where there is an urgent need for accommodation for residents. We take a closer look at the main points of this law, which will redefine the strategies of landlords.

A tense environment: prioritising long-term rental for residents

Faced with a shortage of accommodation accessible to local residents, the "Anti-Airbnb" law, introduced by MP Annaïg Le Meur and supported by Housing Minister Valérie Létard, is seeking to rebalance the rental market. By targeting short-term rental platforms such as Airbnb, this law aims to make the market more favourable to long-term rentals. This measure is particularly crucial in so-called "tense" areas, where there is now too little accommodation available for local residents.

Main tax measures: reduced benefits for furnished tourist accommodation

The reform brings a marked reduction in tax benefits for furnished tourist accommodation. Among the key provisions:

• Tax allowance reduced from 50 % to 30 % for unclassified furnished accommodation: from 2025, owners of unclassified furnished accommodation will lose part of their tax allowance. This figure is aligned with the 30 % allowance for long-term lets.
• Ceiling on rental income: the annual income ceiling for this tax allowance has been reduced to €15,000, compared with €77,700 previously.

The idea is to encourage lessors to review their strategies and consider long-term leasing as a more viable alternative.

Classified furnished accommodation: tax relief also reviewed

Classified tourist accommodation, recognised for its comfort, is also seeing its tax burden adjusted:

• Tax allowance reduced from 71 % to 50 % on rental income for classified properties.
• Lower income ceiling: the 50 % allowance is reserved for homeowners generating less than €77,000 in annual rental income, compared with €188,700 previously.

These adjustments change the tax advantages of classified furnished accommodation, encouraging owners to assess the benefits of long-term letting.

Energy standards: a key issue for homeowners

In addition to the tax changes, this law requires landlords to comply with strict energy standards:

• A ban on letting "thermal flats": from 2025, G-rated properties will no longer be able to be let as furnished tourist accommodation, a restriction that will be extended to F-rated properties in 2028 and E-rated properties in 2034.
• Ten-year retrofit period for rented accommodation: owners of properties rated F or G will have ten years to improve the energy performance of their homes.

For landlords, these requirements mean that they have to anticipate the costs of energy renovation, which is essential for those wishing to continue renting out furnished tourist accommodation.

Local quotas and shorter rental periods

Municipalities will now be able to impose quotas to limit the number of furnished holiday accommodation units in their areas. This power will enable them to maintain a balance between principal residences and furnished tourist accommodation. The law also reduces the maximum annual rental period for tourist accommodation in principal residences from 120 to 90 days, thereby restricting the possibilities for one-off rentals.

Impact on property owners' strategies

These new regulations are forcing landlords to rethink their rental model. At Deplanche ImmobilierWe are keeping a close eye on these developments in order to support our customers in their rental strategy. Between tax adjustments, energy renovations and new quotas, landlords now have an interest in assessing the potential of long-term rental, which could prove more stable and advantageous in the long term.