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Impacts and Considerations The law on housing, development and digital development introduces significant changes that impact the right of individuals to rent accommodation throughout the year. Our expert in real estate law will decipher these changes for you.
The regulation on short-term rentals: limiting rental durations
Under the new legislation, the ability for individuals to rent accommodation for 365 consecutive days will be limited. Instead, a maximum limit of 120 days per year for such rentals has been established. This adjustment has prompted seasonal rental platforms such as Airbnb, Le Bon Coin and Abritel to put in place measures to comply with the new regulations. These platforms now block rentals that exceed 120 consecutive days.
Impacts and Considerations: Effects on Rental Platforms and Market Dynamics
This system was put in place at the end of 2018 and the penalties for non-compliance are substantial. Private owners can incur fines ranging from 5,000 to 10,000 euros, while rental platforms can be fined between 10,000 and 50,000 euros. Given the large number of listed properties, these fines could have a significant financial impact on intermediaries. However, it is important to note that these restrictions currently only apply to primary residences, allowing owners of secondary residences or bed and breakfasts to retain their freedom of rental duration.
Nevertheless, it is foreseeable that this type of rental will become less profitable over time due to the dissatisfaction of hotel professionals who have suffered a substantial loss of market share. While the law aims to strike a balance between the sharing economy and traditional hotel providers, the limitations on short-term rentals indicate a shift in favor of the latter.
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