The needs of the French in terms of housing have undergone a clear evolution in recent years, with the advent of a new trend which is disrupting all life in society. Seasonal rental is today the new way adopted by everyone, to get away from it all in a foreign country. Its variable cost and very low compared to hotels and other high standing hotel establishments, yet with almost similar services, allow households to reduce the holiday budget accordingly. Thanks to this new trend, the number of French people traveling in 2017 reached a record number of 64%. On the other hand, the current rental property market is experiencing a dramatic decline.
To a variety of "seasonal rentals"
Tourist service providers in the largest French cities have plenty of imaginations to find new ways to satisfy their customers. Beyond professional service providers, individuals are now making a place for themselves in the sector by offering various local services at reduced prices such as carpooling, low-cost companies, etc.
The real estate sector is no exception to this new trend. Now, hotels have created new rivals: tourist accommodation.
The advantages of seasonal rentals
Seasonal rental is a phenomenon initiated at the beginning by couch-surfing based on "home tourism". Much cheaper than hotels and yet more advantageous in a way, vacation rentals have grown very quickly to end up appealing to all travelers. This system has many advantages, mainly economic, but also societal because it allows visitors to quickly integrate into society.
The disadvantages of furnished tourist accommodation
While seasonal rentals can generate additional income for owners, it can also annoy the neighborhood and cause a lot of inconvenience. Many people living around furnished tourist accommodation complain about noise pollution caused by tourists. Not to mention the degradation of certain common spaces in the case of a building, for example. Because we must admit that seasonal tenants are sometimes very noisy and less respectful than tenants for life.
As a result, rental property is experiencing a sharp drop in income in terms of long-term rentals, in favor of more attractive and less expensive seasonal rentals.
Long-term rentals on the decline
As a result of this more income-generating rental method, long-term rental is attracting more and more owners. Failing to sign a lease contract for a long-term rental, they can now opt for a rental by the night or by the season, which is much more profitable. This makes it easier for tourists to find less expensive furnished accommodation for a short stay, but more and more difficult for permanent tenants to find a roof over their heads. In addition, fewer and fewer of them are interested in permanent accommodation in the heart of a tourist area because of the inconveniences mentioned above.
On the other hand, landlords are forced to drastically lower rents to compete with seasonal rentals. But in vain !
The new rules
To balance the scales, new laws are needed with vacation rental owners. They must now register to obtain a number guaranteeing a limit of 120 rental days per year. A reduction in rents is also planned in the rental property sector, but this will always be to the detriment of long-term rental. Tourism being a source of additional income for many owners, seasonal rental (even illegal sometimes) seems to be the choice unanimously.
In conclusion, if the State thinks one day that it will be able to control this phenomenon without causing a negative impact on long-term rental, it is advisable to strengthen the rules and controls with the owners of furnished tourist accommodation.
The advice of our rental management agency:
YourHostHelper, your rental management agency in Cannes, is at your disposal to inform you and guide you in the world of seasonal rental. Our experience leads us to know both the legal environment surrounding this rental method and also to understand the regulations of online rental platforms (Airbnb first, but also Abritel, Expedia, booking, etc.). We manage dozens of rentals per year and make it a point of honor to respect these requirements while getting the best out of both owners and travelers.
Rental management is not possible without taking into account all the ins and outs of this type of rental. This is why all our employees are trained and experienced in this field, so as to provide you with the best advice and integrate you as well as possible into this new mode of consumption and holiday accommodation. We communicate with regularly on all the developments concerning the management of short-term rentals and make sure to apply the various regulations to the letter.
The peer-to-peer vacation accommodation model has really changed the real estate rental market by bringing short-term rental to the forefront over a very short period of time. It is therefore natural for this new “eco-system” to experience rapid changes and sometimes positive, sometimes negative evolutions. Still, YourHostHelper is there to support you and help you better understand the legal changes and new mores regarding short-term / seasonal rental.
Undertaking franchise in short-term rental management:
The study of the impact of seasonal rentals on rental property highlights an interesting point: the period in which we are living is conducive to setting up a business in this area. Demand is growing, along with the search for service providers capable of supporting owners in their efforts. However, the market is changing rapidly and outsiders may find it difficult to find a place among “historic” rental management agencies or those directly recommended by the platforms. This is why it is strongly recommended, if your wish is to integrate yourself into this competitive market, to do so through a franchise or brand license.
YourHostHelper meets this need with the implementation of its concierge franchise. This franchise is accessible to any entrepreneur having the skills to meet the requirements of this profession and wishing to settle in a city where YourHostHelper is not yet present. Do you want to know more? Visit our page Rental management brand license or browse our blog articles on this topic. We look forward to welcoming new people to the YourHostHelper adventure.
