In recent years, several measures have been taken in France to regulate seasonal rental and among these, the principle of compensation, introduced in several cities, is the subject of debate. But what is it concretely? Decryption with our concierge YourHostHelper in La Grande-Motte.
The principle of compensation, enemy of seasonal rental?
For several years in France, several towns facing a shortage of housing have been fighting against the abuses linked to seasonal rentals and wish to regulate the short-term rental market. This is for example the case in the Basque Country, where there is grumbling against seasonal rentals. The practice has experienced a real boom in recent years, according to the Agence d'urbanisme Atlantique et Pyrénées, which has seen an increase of more than 130% in the number of furnished tourist accommodation between 2016 and 2020.
The president of the Basque Country urban community, Jean-René Etchegaray, explains: "Without public intervention and given the current rate, we would have reached 37 furnished tourist accommodation in 000". In September 2026, this number was estimated at 2022 in the 16 municipalities of the Basque Country that have implemented stricter regulations that are difficult to apply for owners: the principle of compensation.
In mid-September, the court authorized the urban community of the Basque Country to introduce this obligation, in order to fight against the expansion of housing for seasonal rental, which, according to the municipalities, unbalances the rental market and prevents many inhabitants to settle year-round.
AirBNB rental and compensation: the analysis of YourHostHelper La Grande-Motte
The Basque Country is not the only territory affected by housing shortages. Many other cities across France are experiencing the same problems and are trying to put in place measures to rebalance the rental market and recover housing for people wishing to rent for the long term.
Angélique Michel, director of the YourHostHelper concierge service in La Grande-Motte, explains how this new rule works: “compensation is a regulatory mechanism which consists of obliging owners wishing to permanently rent furnished accommodation such as AirBNB to produce a new housing of equivalent surface area and located in the same municipality”.
The rules of the compensation mechanisms
In the Basque Country, this mechanism was put in place on March 5, 2022 in 24 municipalities considered to be in a “tense” zone. In these towns, as in the other towns affected by the rule, an owner wishing to transform his accommodation into furnished tourist accommodation must first request authorization for a change of use from the town hall. This authorization is granted only if the owner compensates, that is to say that he transforms a room which is not intended for rental into housing for the year. Thus, for a new furnished tourist accommodation, a new accommodation is created. The number of dwellings available year-round in the municipality therefore does not change.
“However, the owners cannot rent just anything,” specifies Angélique Michel. The new accommodation must be decent, be located in the same municipality and have at least the same surface area”. It is therefore not possible to create accommodation in a neighboring town, just as it is not possible to transform commercial premises located on the ground floor so as not to harm small businesses.
The vacation rental industry strikes back
However, as soon as the compensation rule was adopted, groups of owners and concierge companies lodged appeals before the local administrative courts. The latter denounce measures deemed too restrictive, pointing in particular to a “serious doubt” as to the legality of the measures. In the Basque Country, for example, the court thus ruled in favor of the collective of applicants on June 3, asking local elected officials to review their regulations to propose an adjusted version.
Thus, at the beginning of July, after having followed the observations made by the judges, the Urban Community of the Basque Country proposed a revised and corrected version of the regulations, in particular to introduce "better proportionality" in the face of the "scarcity or even non-existence of premises eligible for compensation" underlined by the judges. Thus, we find in the new measures the possibility of buying “commercial rights” for the owners from others, to recover premises. The rule preventing commercial premises from being rented has also been relaxed, in order to allow commercial premises whose window does not overlook the public domain to be transformed too.
Towards a regulation of the seasonal rental market in France
Accommodation in a main residence, all of which is placed for short-term rental, is limited to 120 rental days during the calendar year. If only part of the accommodation (or a room without independent access, for example) is to be rented, there is no limitation. On the other hand, if the property is a second home and the rented part comes from a division of the main residence, or an annex, it is possible to benefit from a temporary authorization with change of use, but without the need compensation.
Regarding student rentals, the principle is the same. They must be rented 9 months a year to a student, then 3 months during the summer to seasonal workers (the accommodation therefore becomes furnished tourist accommodation). The change of use makes it possible to occasionally rent a property within a limit of 120 days per year. This request is made at the town hall and is mandatory and makes it possible to transform premises intended for housing for another use, such as short-term tourist rental.
The new version of this compensation obligation has just entered into force on March 1, 2023. However, the legal battle between the Basque urban community and the applicants is not over. After the suspension of the measure, a hearing on the merits, on the content and even on the legality of the measure must take place in the coming months.
For Angélique Michel, director of the Concierge of La Grande-Motte, “the principle of compensation is an interesting rule to stem the shortage of housing for the inhabitants. It is understandable that municipalities want to protect themselves and avoid losing their population. However, care must be taken that the measures adopted are not too strict, otherwise they will have the opposite effect: the owners of seasonal rentals risk deserting the town and moving elsewhere”.
AirBNB rentals and compensation: everyone wins
Many cities have adopted the compensation mechanism among their regulations related to AirBNB and vacation rentals. Their aim is not to harm the development of this activity but to regulate the market in order to avoid an excessive rise in real estate prices at the local level, while keeping a certain number of properties for rent in short term in order to attract tourists. Although difficult to implement in all the municipalities concerned, the principle of compensation is one of the measures that will ultimately make it possible to find a balance and satisfy everyone. The municipalities will have accommodation to accommodate new arrivals and the owners will be able to continue to rent their furnished tourist accommodation throughout the year.
