Landlords with a lease in place for several years will only be able to take advantage of the tax breaks created in the new rental law after contract renewal. This recently approved legislation is scheduled for review at the end of 2019.
The legislature voted in favour of the PS proposal mandating that the minimum term of lease contracts should be 12 months. The minimum time period does not apply to contracts for non-permanent housing or special transitory purposes, namely for professional motives, education, training or tourism.
Marriott International and Hostmaker announced a collaboration to introduce a new holiday home rental undertaking under Marriott’s Tribute Portfolio Homes brand. This venture marks Marriott’s first step into the home-share market, nine years after Brian Chesky founded Airbnb and disrupted the travel industry. The move comes at a time when Airbnb is attempting to step out of its “alternative travel” image, introducing concepts like Airbnb Plus that offer a more curated travel experience. Meanwhile, other traditional hospitality companies like AccorHotels and Hyatt have also launched similar endeavours.
Worried and even frightened by suggested new policies that the Government is creating for the rental market, APPII recommends dropping the “IRS” tax rate on 5-year contracts, rather than 10 or 20 years, as has been proposed. The association president considers the shorter period to be more realistic in achieving the goal of stimulating the rental market.
Following similar moves in London and Amsterdam, the holiday letting firm announced that hosts in four key Parisian neighbourhoods will only be able to rent out their entire homes for no more than 120 nights per year starting in 2018. The restrictions will bring Airbnb into line with current local regulations. Paris is the platform’s largest city based on listings.
The consumer group, “Deco”, and the “PSP” warn of potential dangers with vacation rentals, especially when using the internet. Every year Deco receives dozens of complaints related to scams associated with holiday home lets. While the internet can be the dominant means of publicizing and reserving holidays, it is essential to use care, especially when making online payments.
There are more houses being sold today but high prices in central urban areas are pushing buyers out to the suburbs. Simultaneously, rentals are in decline. Letting accounted for 60% of real estate activity at the height of the crisis but has fallen sharply in the last two years. In 2016, lets accounted for just 25% of housing turnovers.