Renting your apartment is an objective with the aim of building up capital and generating additional income. Unfortunately, even if the rental remains in theory very simple to set up, you risk being confused by the many administrative requirements. Indeed, the legislation remains very precise on the subject with the supervision of rents, the prior declarations to the town hall and the obligations that you have as a landlord. However, there is no need to give up on your project, because there is a solution by directing you towards rental management.
Take into consideration the rent control in Paris
This is a measure implemented since 2015 under the Alur law. From the moment you have an apartment to rent in the Paris region, the rent price cannot exceed the reference rent in Paris. The only exception is a 20% markup, but we'll get to that later.
The City of Paris has 80 districts which have been grouped into 14 geographical sectors. Then, a median rent was established based on the price per square meter. The calculation follows specific rules such as the year of construction of the property and the number of rooms in the accommodation. Each year, a reassessment is made. Regarding the increased reference rent, it cannot exceed the 20% ceiling. Note that there is also the reference rent reduced within a limit of 30% of the reference rent.
This is a criterion to absolutely take into account to rent with a rent in total adequacy with the regulations in force. The easiest way is to perform a simulation to avoid disappointment. Another possibility is to choose seasonal rental rather than long-term rental. Know that the latter remains particularly advantageous, especially if you work with a concierge.
The obligations to respect to rent your apartment on Airbnb
When it comes to your main residence, the seasonal rental cannot exceed the limit of 120 days per year. Beforehand, contact your town hall or go to its website to complete a declaration. An imperative step in order to obtain a registration number that you indicate at the level of your ad. Moreover, this specificity does not only concern the Airbnb platform, but seasonal rentals as a whole. In addition, do not forget to pay the tourist tax using the tax scale of your tax.
Renting a second home on Airbnb is also possible. Once again, a reconciliation with the town hall is the first step in registering the property and making a change of use. You make the change of destination to hotel accommodation, allowing you to have a proper registration as a seasonal rental.
If you are a tenant of a property, be careful with the rules of co-ownership and your landlord. Indeed, some regulations prohibit seasonal rental and only a modification of it allows you to rent your property on Airbnb. At the same time, you must obtain the agreement of the owner. You inform him that you are renting your property on Airbnb and that the price of the night cannot exceed the amount of the rent on a pro rata basis.
All about the Airbnb mobility lease
With the introduction of the ELAN law in 2018, the introduction of a mobility lease remains another possibility. Indeed, it is a furnished rental contract for a period of between 1 month and 10 months maximum. However, you must respect very strict conditions and rent only to people with precarious mobility.
Know that the advantages are multiple with the possibility of modifying the duration of the lease when you do not reach the limit of 10 months. For example, the tenant wants to keep the accommodation longer and you have the opportunity to do so, allowing you to generate additional income. However, the mobility situation must be proven for the temporary tenant. Precautions to take when signing the lease.
For example, the tenant is in vocational training, he is pursuing higher education, he is currently on an apprenticeship contract, he is doing an internship or voluntarily commits to civic service. The other exceptions relate to a temporary assignment for a professional activity or a professional transfer.
The Airbnb platform allows this type of rental, but don't forget to specify it in your ad. You define the prices, of course including the charges, while taking into consideration the cap on Parisian rents. Once the reservation has been set up, you complete the mobility lease, read the contract carefully and prepare all the additional documents such as the list of recoverable charges, the property regulations and of course the technical diagnoses.
When the traveler arrives, you give him all the annexes and you draw up an inventory. Each party signs a copy of the contract and you have nothing more to do.
Taking into account taxes on Airbnb
As a host, you generate income through the platform. It is taxable income and therefore it is imperative to declare it to the tax authorities. Then you pay social security contributions and income tax. Regarding your obligations, we advise you to contact a tax advisor to find the most appropriate solution according to your situation.
Indeed, taxation remains a complex subject and if you are in special circumstances, the administrative obligations are not the same. Except in special cases, you declare all of your income as furnished rentals. There is a specific sheet on income tax, more specifically in the category of industrial and commercial profits.
Regarding VAT, it is useless to include it, because you are not a professional. To facilitate reporting, Airbnb sends you an annual income statement each year. All information is sent by email to simplify your procedures. But on your side, do not forget to manage the declarations.
Why does the UpperKey concierge help you in renting an apartment in Paris?
Investing in stone is always beneficial for creating real estate capital and generating income. But many rules exist and they must all be respected to avoid finding yourself in default vis-à-vis the legislation. This is where UpperKey Concierge comes in.
You entrust them with the total management of your property, whether for long-term or seasonal rental. You will discover a professional service, managing the administrative, accounting and tax aspects. Not only will you save time, but you no longer have to worry about managing your property.
When renting an apartment in Paris through the Airbnb platform, UpperKey takes care of both putting your ad online with an attractive description and professional photos. The service manages all interactions with tenants and therefore you do not deal with any disputes. Finally, you receive your income monthly and you benefit from support regarding their declaration.