Is Airbnb legal in Lille?
Don’t worry, Airbnb is legal in this French city! Lille, France, is among the top cities with a free business environment. According to our city rankings, this is a good place to live with high ratings in housing, safety and healthcare.
Currently, there are 3815 Airbnb listings in Lille, with 59% of entire houses earning up to €1,707 a month, 36% managed by professionals, and 64% managed independently. Apart from complete houses, Lille’s Airbnb offerings include 29% of private rooms and 11% of apartments(condos). Average Occupancy Rates in Lille is 44% and average daily rate is €98. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Lille can make up to €27,924 each year.
Short-term rental policy in Lille
– Rentals are automatically blocked once the limit of 120 days of rental has been reached
– Compulsory registration at the town hall of Lille
– If you rent a second home, your accommodation will no longer be for “residential use” but for “commercial use”. You must request a change of use of the accommodation from the town hall of Lille in order to rent a second home.
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.
