Tag: lat_48.8588897

Fully Booked Airbnb City: Paris, France

Post author By Robyn Peña
Post date September 22, 2022

There’s no doubt that the city of love is consistently adored for many decades because of its romantic vibe, classic French gastronomy, and world-renowned tourist attractions. According to recent statistics, Paris, France brings in over about 30 million tourists annually.

Can you imagine the number of visitors that have booked their respective accommodations in a span of one month? We have one word to describe it: Fully-booked!

In general, Paris is one of the most visited destinations across the globe because of its famous attractions such as The Eiffel Tower, River Seine, Notre-Dame Cathedral, and many more. Let’s not forget that this city is also a global center for art & fashion.

Property investors who want to start an Airbnb business in France should certainly do thorough research about rules and regulations as they vary per city. For instance, hosts should know that the Airbnb rules in Montpellier prohibit rent for more than 120 days per year and limits one per fiscal household for secondary housing.

Continue reading to learn more about Airbnb’s long-term profitability in Paris, France.

Is Airbnb Profitable in Paris, France?

Paris Property Group declared that this city has the most Airbnb rental accommodations with very high demand, however, has limited supply. Based on Airbtics, an average host can earn an average of €40,109 yearly for a 1-bedroom apartment/condo in Paris.

These Airbnb metrics are necessary in order for property investors to have an outlook of potential revenue and avoid losing hard-earned money. Knowing your preferred area’s occupancy rates, average daily rates and annual revenue is important in starting an Airbnb business to achieve success.

By using an accurate short-term rental calculator, you’ll be able to confirm that Paris is one of the best places for investment. There are indeed plenty of high-return investment opportunities in Paris.

Source: Airbtics Dashboard

What is the Average Occupancy Rate for Airbnb?

An excellent Airbnb occupancy rate should be around 65% with a remarkable increase monthly. The good news is that for Paris, the occupancy rate should not be doubted at all. Based on Airbtics, the YoY change in Paris, France increases by 324.16% and has had a 100% occupancy rate since April 2022. Talk about profitability!

Paris is one of the Airbnb cities with the highest occupancy rates, particularly during the peak season in September. In addition to this, Schengen Visa recently announced that France has the highest number of tourists this summer of 2022.

It’s interesting to know that despite the post-pandemic restrictions in various countries, the international traveler’s ratio in Paris remains at 76%.

Is Paris a Good Place to Invest in Real Estate?

Before purchasing an investment property in France, it’s important to have knowledge of the various kinds of mortgages, ongoing and upfront costs, and other fees associated with real estate. Based on a recent study, Paris real estate is a steady profitable investment that has tripled over the last 30 years. Sweet money deals for investors!

However, this may vary depending on the exact location of your Airbnb business in Paris. In order to track the Airbnb performance of your preferred neighborhood in Paris, it’s practical to take advantage of smart technology. By using a precise short-term rental calculator, you’ll be able to consistently monitor the demand & supply and spy on your competitors located within the area – and stand out among the rest.

What are the Airbnb Rules in Paris?

If you are worried about strict Airbnb rules in Paris, the good news is that there are only a few things to take note of:

Registering your Airbnb property is NOT necessary if you’re only offering private rooms for short-term rental, but is necessary if you’re renting an entire property, and if the property is your primary or secondary residence.
If you manage multiple listings, you’ll need to register each listing individually, receiving a registration number for each property you intend to list.
Rentals with bail mobilité or mobility lease are NOT required to register with the city.
If you plan to host guests throughout the year, you will need to convert your accommodation’s destination status by filing an application for urban planning permission to the City Hall.
Subsidized housing usually has rules that prohibit subletting without permission.

Top 3 Neighborhoods in Paris for Airbnb Investment

In order to properly identify which particular area is best for investment in Paris, here are the top 3 neighborhoods with the highest occupancy rates:

1. The 15th Arrondissement

Considering that this area is the most populated in Paris, The 15th Arrondissement is certainly home to prime areas for rental investment due to its close proximity to tourist attractions including The Eiffel Tower, Montparnasse Tower, and Bourdelle Museum.

Average occupancy rate: 79%
Annual revenue: €38,048
77% of the listings are allowed to operate short-term rentals with a local license.

2. The Golden Triangle

Home to Champs-Elysées and Avenue Montaigne, The Golden Triangle is one of the most prestigious neighborhoods to invest in Paris.

Annual revenue: €59,924
Average occupancy rate: 84%
95% of the listings are allowed to operate short-term rentals with a local license.

3. The 16th Arrondissement

If you are looking to invest in properties that are family-friendly, this neighborhood is highly recommended. Its close proximity to the Paris capital makes it accessible to travel.

Annual revenue: €30,604
Average occupancy rate: 58%
82% of the listings are allowed to operate short-term rentals with a local license.

Conclusion

If you are looking to invest in an Airbnb city with maximum cash-on-cash return and 100% assurance that it will bring long-term profitability, in-depth research is a stepping stone. However, the data points mentioned in this article such as Airbnb occupancy rates, annual revenue, & traveler’s ratio should be your basis for investing in an Airbnb business in Paris.

Now that you are aware of how this Airbnb city became fully booked, don’t miss out on greater opportunities! With the help of our reliable data analytics tool, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features.

Tags Fully-booked Airbnb, lat_48.8588897, lng_2.320041

Guides

The Ultimate Guide to Buying an Investment Property in France

Post author By Robyn Peña
Post date July 7, 2022

Purchasing a property investment in France is a complex task and it requires a lot of analysis. In this article, we’ll feature the various kinds of mortgages in France, upfront & ongoing costs of investment property, taxes, and other fees that you should consider. Learn how you can strategize property investment in France & make an informed decision!

Variable Rate Mortgages

Variable rate mortgages can fluctuate, either on a 3- or 12-month basis, which affects your duration or monthly payments. This is usually decided before the loan is in place. The advantage of a variable rate is that there are usually no penalties for early repayment, partial or total.

Fixed Rate Mortgages

Fixed rate mortgages are worth considering in France as the rate is often fixed for the entire duration of the loan, up to 25 years.

Capped Rate Mortgages

Capped rate mortgages are interesting because the variable rates are incredibly low at the moment. Capital Repayment Mortgages Capital repayment mortgages are the main type of loan offered by banks in France, where you are repaying both capital and interest from the start of the loan.

Interest Only Mortgages

The purpose of this investment is to acquire interest and serve to repay the outstanding capital at the term of the loan.

How to apply for a mortgage in France?

The process of choosing and obtaining a mortgage in France can seem complex and obscure. Here are some of the requirements that you will need:

1. Mortgage Application

The first step is to request an official mortgage offer from the lender of your choice. Once the seller and buyer have signed a preliminary sales agreement, the bank is assured that the buyer can afford the loan (per French standards), and the property’s value supports the loan request.

2. Mortgage Agreement

Once you have completed the necessary application paperwork and agreed to the life insurance coverage, the lender will send you the mortgage offer. This may take up to 10 working days (but not more than 30 days) before signing and accepting the offer.

3. Notary Procedure

Finally, the lender will send a copy of the mortgage agreement to a notaire (notary), who will prepare the deeds of sale. The whole process typically takes around 2-3 months from signing the initial sales agreement to completion of purchase.

Here are some of the requirements:

Completed mortgage application form
Copies of the borrower’s passports or valid ID
Proof of income (self-employed individuals need audited financial statements for three years)
Bank account details
Proof of current address
Completed preliminary sales agreement
If improvements are to be constructed on the property, a property title or preliminary sales agreement for the land, building license, and the building contract and plans
The title deed or loan deed with a complete repayment table if the property is to be financed with a remortgage or equity release

How do mortgages work in France?

Mortgage costs in France depend on multiple factors – they are usually more expensive for existing properties than for new builds.
You can expect to pay between 10-15% of the purchase price in total transaction costs when buying property in France, including taxes and insurance.
Fees relating to the mortgage include mortgage arrangement/administration fees – typically around 1% of the amount borrowed (plus VAT)
Notary fees – usually about 2-3% for a new property and 6-8% for a property older than five years (plus VAT) Valuation survey – sometimes a requirement of lenders, costs around €250.

In addition to this, you can easily calculate how much the approximate monthly payment for your mortgage is using an online mortgage calculator in France.

Costs of Investment Property

Now that you have familiarized yourself with the kinds of mortgages, the next step is to learn more about the costs of investment! The average price of houses currently on the market is €10,650 per square meter.

The average monthly rent ranges from €32 – €35 per square meter. Let’s take a look at the major cities in France and create a comparison:

Location	Apartment price (per sq.m) within the city centre	Apartment price (per sq.m) outside the city centre
Paris	€13,852	€10,335
Nice	€6,325	€4,725
Antibes	€5,125	€4,000
Lyon	€5,100	€3,057
Toulouse	€4,688	€3,043
Nantes	€4,288	€2,622
Montpellier	€3,660	€2,575
Lille	€3,220	€2,540
Marseille	€3,200	€2,530

TOTAL EXPENSES & TAXES

Here is a summary of expenses & fees that you will need to consider when investing a property in France:

EXPENSES \| FEES	AMOUNT
Notary Fees	3-10% (+20% VAT)
Registration Fees	0.60% - 4.89%
Land Registry Salary	0.10%
Real Estate Agent’s Fees	1.50% - 5% (+20% VAT)

What is a good cash return / net rental yield?

You can generate good cash flow from your residential investment property by either renting out long-term or short-term. For the long-term rental, you’ll rent out your property for a minimum of 12 months. There’s very little maintenance to do and you’ll need to visit the property on a quarterly basis to do inspections & other similar errands.

However, if you are after high return investments such as over 10% net rental income, running a short-term rental is what you need to consider. By doing short-term rental, you need to target somewhere between 10 – 25% net rental yield, and 20-50% cash return during the first year.

Airbtics is designed to showcase accurate data for simulating cash returns using the ultimate Airbnb Calculator. Choose to stand out among your competitors & try Airbtics!

Tags lat_48.8588897, lng_2.320041

Airbnb Rules All About Airbnb

Paris Airbnb Rules

Post author By Robyn Peña
Post date July 5, 2022

Home > Resources > Airbnb Rules >

Paris Airbnb Rules is a complete guide that will provide you with an overview of the guidelines and get you started on your journey!

July 11, 2023

Is Airbnb legal in Paris?

Don’t worry because Airbnb is legal is Paris! This French city is known for its gorgeous, imposing monuments. These iconic structures, often an exemplar of a particular era in architecture, are one of the city’s instantly recognizable elements. The preeminent of Paris’s landmarks is the Eiffel Tower.

Currently, there are 12784 Airbnb listings in Paris, with 69% of entire houses earning up to €2,549 a month, 19% managed by professionals, and 81% managed independently. Apart from complete houses, Paris’ Airbnb offerings include 13% of private rooms and 12% of apartments(condos). Average Occupancy Rates in Paris is 46% and average daily rate is €159. According to short-term rental property data source Airbtics, a 2-bedroom apartment in Paris can make up to €45,912 each year.

Short-term rental policy in Paris

– Registration is NOT necessary if you’re only offering private rooms for short-term rental, but is necessary if you’re renting an entire property, and if the property is your primary or secondary residence

– If you manage multiple listings, you’ll need to register each listing individually, receiving a registration number for each property you intend to list

– Rentals with “bail mobilité” (mobility lease) do NOT need to register

– If you plan to host guests throughout the year, you will need to convert your accommodation’s destination status by filing an application for an urban planning permission to the City Hall

– Subsidized housing usually has rules that prohibit subletting without permission

France’s General Legislations

You NO LONGER need to register your accommodation if:

– You rent a single room of your primary residence.

– You rent a bed and breakfast (chambre d’hôtes), a hotel or another hotel-like type of accommodation.

– You rent only on “bail mobilité” (mobility lease) scheme for a minimum of one month to a tenant justifying, on the effective date of the lease, to be in professional training, in higher studies, in apprenticeship contract, in internship, in voluntary engagement within the framework of a civic service, or on a temporary assignment in the context of his professional activity. Check out our article for more info about the mobility lease.

– You rent for long-term stays only – for a minimum of 1 year.

Whether you rent your main or secondary residence for a period of less than or more than 120 days per year in Paris, it is mandatory to make a declaration to the Town Hall (Mairie de Paris).

Short-term rental policy in France

– Required to report specific data to the French tax authorities on a yearly basis

– Report income from the rental of furnished premises on your annual tax return in the Industrial and Commercial Profit (BIC) category

– Guests who have booked a “mobility lease” accommodation are automatically exempt from paying tourist tax

– A primary residence is allowed to be put up for rent in full for a maximum of 120 days per year

– You can rent your secondary residence all year long provided you’ve declared your rental activity to the city.

Pros and Cons of running Airbnb

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

2. Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

3. Earns more money than a long-term rental – It’s simple to calculate: €1500 for a vacation week vs. €1500 per month to rent for a year.

4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.

Conclusion

If you’ve made it this far, you’re thinking of starting an Airbnb.

We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.

You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as

– which neighborhood to target,

– which amenities are in high demand,

– what is the market’s historical performance,

– what are the occupancy rates of a two-bedroom house,

– should I do a two-bedroom house or a three-bedroom house?

Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.

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Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

Tags Airbnb Rules & Regulations, lat_48.8588897, lng_2.320041

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Is Airbnb Profitable in Paris, France?

What is the Average Occupancy Rate for Airbnb?

Is Paris a Good Place to Invest in Real Estate?

What are the Airbnb Rules in Paris?

Top 3 Neighborhoods in Paris for Airbnb Investment

1. ​​The 15th Arrondissement

2. The Golden Triangle

3. The 16th Arrondissement

Conclusion

Variable Rate Mortgages

Fixed Rate Mortgages

Capped Rate Mortgages

Interest Only Mortgages

How to apply for a mortgage in France?

1. Mortgage Application

2. Mortgage Agreement

3. Notary Procedure

How do mortgages work in France?

Costs of Investment Property

TOTAL EXPENSES & TAXES

What is a good cash return / net rental yield?

Is Airbnb legal in Paris?

Short-term rental policy in Paris

France’s General Legislations

Short-term rental policy in France

Pros and Cons of running Airbnb

Pros

Cons

Conclusion

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