The housing crisis and more particularly long-term rentals, most of the time residential, continues to create a real imbalance between demand and local supply. This situation has persisted for many months and even several years. One of the observations that was made is that this emanates, at least in part, from the success experienced by seasonal rentals with owners. This economic model often proves more profitable than long-term rental while keeping accommodation available for owners when they want it. Our concierge agency in Grenoble invites you to find out more about this news.
Is Airbnb the enemy of long-term rentals?
In this way, many owners have withdrawn their property from the long-term rental market to favor seasonal rentals, creating a real imbalance and a housing crisis. The government then took measures to restore the balance. During a recent interview with Le Parisien and published on September 26, the Minister of the Economy, Bruno Le Maire, announced targeted actions aimed at regulating furnished tourist rentals. In essence, the project is very interested in seasonal rental platforms and their economic model of private rental, Airbnb in the first place.
Mr. Lemaire thus unveiled a plan aimed at providing essential support to people who face real difficulties in finding accommodation, while adopting a less favorable position towards owners of furnished tourist accommodation, for whom these new provisions may be less well received. The tax adjustment they currently benefit from will be reduced, from 71% to 50%, according to information provided by the Minister of the Economy. The objective is to relieve congestion in the traditional rental market which has been hampered by the proliferation of this new category of real estate.
Short and long term rentals on an equal level:
“It is important to note that currently, around 100 homes in France benefit from a tax advantage of 000%,” underlined the Minister of the Economy, expressing his astonishment at this situation. He added: “This represents a considerable incentive not to rent out your home, because you can make as much profit in three months as in a whole year! This is why we will reduce this tax advantage to 71%, thus bringing these Airbnb rentals on the same footing as other furnished accommodation. ".
The idea here being that if Airbnb rental no longer has major advantages, many owners will undoubtedly review their strategy and perhaps return to long-term rental. This reduction in the tax advantage naturally adds to the multiple local regulations deployed by municipalities and communities to drastically limit the development of Airbnb rentals in their territory.
For our agency concierge in Grenoble, this approach of course has limits. First of all, tax benefits are often addressed by homeowners as the name describes them: benefits. However, these are not motivations or deep reasons. Undertaking seasonal rental is often a project in its own right which cannot rely on such feverish motivation. If an adjustment of tax advantages will have an impact on the market, it will certainly not be revolutionary.
Consider the financial benefits for owners:
According to a study carried out by the economic consulting firm Asterès, commissioned by Airbnb for the year 2022, the median income of owners who rented their accommodation on the platform amounted to 3 euros net the previous year, after payment taxes and duties. This is a significant amount, varying according to the owners, but which should now be reduced as a result of the new regulations.
Be careful, however: the tax advantages are only part of the rental project. Whether you choose long-term or short-term rental, the economic model does not depend solely on the tax advantages offered by the state. Your seasonal rental project must be approached as a whole. To support you, our concierge agencies are at your side to advise and guide you. Do not hesitate to contact the YourHostHelper agency closest to you!
