If you own French real estate and you are considering entering into the nightly rental business with the help of systems like AirBnB there are important items you need to consider, here are six:
One
Bed tax / tourist tax / visitors tax – taxe de séjour
We don’t know what area you are in France so different rules may apply to you or your French property owner if you start doing nightly rentals. We recommend you check about bed taxes (tourist tax, visitor’s tax, taxe de séjour) or the equivalent short term occupancy tax that may or may not apply in your area.
As you know French government offices are often looking for ways to raise money through taxation and we have heard they are starting to surf the net to find people who rent and don’t disclose income or pay appropriate taxes. Check with your local government so you are informed before you take action.
Two
License
You may be required to have some type of business license in the area you have your nightly rental property so when you check about the ‘bed tax’ find out do you need to have a license to operate a short term rental accommodation.
Three
Security
When I heard one of the founders of AirBnb being interviewed Brian Chesky said most of the owners he knows about really check out the people who they are renting to. Make sure you do. So you have peace of mind as well as a piece of extra income.
Four
Wear and Tear
Flooring, paint, furnishings and appliances will all be impacted by the extra people staying in your property. This needs to be factored into the cost of your rental business venture.
Five
Income Tax
Make sure you are aware of the overall tax implications of you earning extra income from your property.
Six
Insurance
Make sure your French real estate home owner insurance covers any negative event that could happen when you have someone staying in your property.
We are here to help if you would like to connect with an English speaking French real estate agent in your area of choice please let us know and we will help you connect and we charge you nothing for our assistance. Contact us.