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The Senate has given its final approval to a proposed law aiming to better regulate the short-term rental market. The law is set to provide new monitoring tools for mayors and align rental obligations with those of long-term housing. The text, refined by the mixed joint committee, now awaits a vote by the National Assembly.
Eighteen months after it was introduced, the lengthy journey of this law proposal, intended to strengthen local regulation of short-term rentals, is reaching its conclusion. The bipartisan proposal from the National Assembly is expected to be definitively adopted this week in Parliament. The Senate adopted the text on November 5, following a compromise with Assembly members last week. The National Assembly will vote on the committee's final conclusions on Thursday, November 7.
Before the vote, Housing Minister Valérie Létard praised the “pragmatic” proposal, eagerly awaited by both local officials and the French public during a period of housing shortages in high-demand areas.
The proposal, which has garnered broad consensus, brings the legal framework for Airbnb-style short-term rentals closer to that of long-term rentals, covering both tax matters and energy performance obligations. “It was our shared responsibility to ensure fairness in these regulations,” emphasized the minister.
A key measure in the proposal reduces tax benefits for short-term rentals compared to long-term residential rentals. The tax deduction for classified short-term rentals and bed-and-breakfasts will decrease from 71% to 50%, with a cap lowered to €77,700. For unclassified short-term rentals, the deduction will fall from 50% to 30%, aligning with unfurnished rentals, with a €15,000 cap.
For energy renovation, new short-term rentals must now follow the same timeline as standard rentals. This means that properties with an energy performance rating of G will be prohibited by 2025, F-rated properties by 2028, and E-rated by 2034. This measure prevents the movement of properties out of the long-term rental market and into short-term rentals as these climate-related regulations come into effect.
Although there may be ongoing adjustments to these deadlines, the housing minister stressed the need to ensure equal treatment of housing options to prevent a shift from long-term to short-term rentals.
For existing short-term rentals, the law provides a 10-year adjustment period, with all properties required to meet a minimum D rating by 2034 — a “realistic and reasonable” timeframe, according to the LR rapporteur.
The law also provides a suite of tools for municipalities to use in areas where the supply of traditional housing has significantly decreased due to the rise in short-term rentals. “The law will allow for regulation that meets local needs… only where it is justified and necessary,” emphasized Senator Sylviane Noël (LR), rapporteur of the proposal.
With this law, municipalities can set quotas on short-term rentals and establish zones exclusively reserved for primary residences, especially in high-demand areas.
As of January 1, 2025, mayors will also be able to reduce the maximum number of days a primary residence can be rented from 120 to 90 days..
Grâce au texte, les communes auront par ailleurs accès à davantage d’informations, et pourront donc améThe proposal also grants municipalities more access to rental data, enabling improved regulatory action. Each rental property will require registration with a unique number assigned at the time of declaration to the municipality. A national online service will be established to facilitate this.
Additionally, the proposal impacts co-ownership regulations, allowing general assemblies to prohibit short-term rentals by a two-thirds majority rather than requiring unanimity.
Source : publicsenat.fr
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