Many short-term rental investors think they can rent their property for only 120 days a year. If until now you thought so too, know that this article is for you: we explain to you how to exploit the potential of your LCD investment all year round!
While the rise of short-term rental platforms like Airbnb and Booking.com has transformed the real estate market, French legislation is now trying to impose limitations. This is particularly the case with the 120-day rule.
But then, can you really rent a property for a short period of more than 120 days a year? What does this famous rule say and who does it apply to?
Discover in this article these specificities of French law on this subject.
The 120-day rule is a regulation of the Construction and Housing Code (CCH). It limits the duration of rental of furnished main residences via reservation platforms such as Airbnb or Booking.com. According to this rule, an owner can only rent his main residence for short periods of up to 120 days per year.
Primary residence is defined by Article 2 of the law of 6 July 1989 (amended by the law of 27 July 2023) such as housing occupied by its owner at least 8 months in the year.
The distinction between primary residence and secondary residence is therefore very important! In fact, the rule only applies to primary residences. However, many LCD investors think they are limited to 120 short-term rental days per year. This is where the mistake is: their property, considered as a second home, can be rented in LCD all year round.
You must then comply with the rules in force and register your furnished tourist accommodation with the town hall (Article L324-1-1 of the Tourism Code). This declaration is usually made in a few minutes on the internet and a registration number is issued immediately.
With the short-term rental market growing more and more over the years, the 120-day rule wants to “protect” the housing stock intended for permanent residence. It balances the tourist offer and the needs of residents, preventing the rise in rents and real estate prices.
This limitation allows local authorities to control and regulate the use of real estate, ensuring effective management of local taxation and declarations specific to short-term rentals, while supporting responsible and sustainable tourism.
The situation may be more complex for those who want to invest in cities with more than 200,000 inhabitants and in areas where the residential rental housing market is tight.
In this case, in order to use your LCD property and, therefore, to derogate from the 120-day rule, you must apply for a change of use authorization, as provided for by Article L631-7 of the Construction and Housing Code. It involves the transformation of a premises for a use other than that for which it was originally authorized. This same section provides that a premises is “deemed” to be for residential use if it was allocated to that use on 1 January 1970 and that it maintains this use regardless of subsequent uses.
For more information on the change of use, see our full article on this subject.
Don't get me wrong! This is a mistake that investors often make and a question that we are asked very often and we confirm it to you: you can rent your property all year round for short stays as long as it is not considered as your main residence.
If you want to invest in a property built before January 1, 1970 and in a city concerned by the authorization of the change of use, do not be discouraged and get support from professionals.
If you want more information on this procedure, but also want to delegate the management of your property, make an appointment for a consultation with our experts.
As you can see, to make the most of your investment in LCD, it is important to fully understand the workings of the 120-day rule and its application.
Make an appointment with our experts for personalized advice on your LCD investment and for complete management of your property.
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