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Buying Property for Airbnb and Renting It

Buying property for Airbnb is an interesting alternative to developing your income. Indeed, the famous platform is now essential in the short term rental of furnished tourist accommodation. But it should be remembered that the process remains framed by law and that the slightest infraction risks costing you dearly.

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Take into account the number of nights

Buying to rent in Airbnb can be a particularly interesting formula for developing additional income. But you should know that this is done in the context of a furnished tourist accommodation and that therefore specific rules apply. This is a short term renting and should not be viewed as along term rentals.

Therefore, it is important to find out about the specific rental conditions in relation to the country in which the property is located. As an example, the rules in Dublin will not be the same as in Zurich.

This observation is also valid for an Airbnb Orléans or the rental of a villa in Marrakech with Airbnb.

In France, the number of nights will be limited to 90. But the most commonly used rule is that of 120 rental days per year.

What is the difference between traditional renting a primary residence and a secondary residence?

Buying for Airbnb remains perfectly possible, but there is a significant distinction in relation to the type of residence.

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Take the case of a main residence, it is impossible to rent more than 120 days each year, this represents four months of rental. The reason is simple, a main residence is defined as such: living at least eight months a year in the accommodation. If this is not the case, it is necessary to review the qualification of the accommodation in lumbar residence.

But that's not all, some French cities like Bordeaux, Paris or Nice require the lessor of an Airbnb property to make the declaration in order to obtain a registration number. This information will also be communicated on the Airbnb platform.

If, on the other hand, you wish to rent a secondary residence, it is imperative to make a prior declaration to the town hall. In addition, it is imperative to respect the rule of 120 days each year. The penalties are particularly heavy if you do not respect this principle.

Representing the importance of understanding the regulations for Airbnb property investment in the country
Complying with regulations is crucial to avoid penalties.

Acquiring a new home to rent on Airbnb

Buying an Airbnb apartment to rent out is a great way to increase your passive income. But it is always important to respect the instructions of the platform and the legislation. As an Airbnb hosts, you have obligations. If you wish to invest in new housing, it is imperative to have the status of non-professional furnished rental company or real estate agents.

In this way, you will be able to deduct the charges. But you should know that you are targeting a temporary audience, who will be interested in furnished short term rentals, because you have to keep in mind that this is a temporary stay.

Regarding tax issues, they are very clear on the subject, because the income generated by an rental falls directly within the framework of industrial and commercial profits. However, there is a nuance in relation to the amount of rent.

If the amount of the rental does not exceed the ceiling of €32,900, it is then possible to opt for the micro BIC tax regime. Depending on the system chosen, the taxation will not be the same and it is important to ask yourself the question from the start before buying a property to rent it on Airbnb.

In all cases, the declaration of income generated from the Airbnb platform must be done, under penalty of being sanctioned.

What are the best financing options for renting a house or apartment on Airbnb?

As you can see, very specific rules apply and you could be lost in front of its tax and administrative obligations. Do not panic, there is another option by directing you to a concierge service like UpperKey . A completely transparent service with a specific team that will be able to support you in the purchase of a property and its furnished short term rentals.

For your part, you are relieved of a very restrictive obligation and you know that your property will be optimized to have a maximum occupancy rate.

What are the advantages of buying to rent on Airbnb?

Once you have been able to obtain LMNP status, you will be able to draw a great deal of income directly from short term rentals. Indeed, it is a booming market on French territory thanks to many advantageous tax measures. First of all, by acquiring an apartment or a house, you benefit from an exemption from property tax for a period of two years.

Moreover, when the tenant (may be business travelers or leisure ones) of a house or an apartment on stays for a short period, property owners do not need to carry out an administrative procedure. This is not the case when considering a rental, because a prior declaration must be made at the town hall.

Vigilance regarding the location of Airbnb rental properties

Buying to rent in Airbnb must be done with vigilance, because there are many disparities depending on the area. Indeed, some cities benefit from a strong tourist development and therefore a better attractiveness. As a result, the income will then be much greater, even if it is a question of renting a simple studio.

Tourist rental requires a detailed analysis of the housing market in order to determine the most sought-after AIrbnb rentals. Once the analysis is complete, real estate investments in a property can be made with the aim of renting it later on

How to determine the profitability of an Airbnb rental property bought to be rented?

You have acquired your rental property and have completed your registration on the Airbnb platform . From now on, you seek to obtain the best possible profitability and this goes through your occupancy rate.

The majority of seasonal towns have an occupancy rate of around 40%. As explained above, some cities are much more attractive and can greatly exceed 60%.

However, this is not the only criterion to take into consideration because some French cities like Cannes have a rather low rate of bookings. But given that there are many congresses and its famous festival, the prices are literally doped.

Again, this comes down to carrying out an accurate analysis of the real estate market to avoid investing in real estate in an unattractive area or with a real estate investment property that does not correspond to the search of Airbnb tenants.

Once again, it is preferable to be accompanied by real experts who will bring you all their know-how and skills. To avoid ending up with a less profitable investment than expected, choose Upperkey . The concierge will provide you with total support both at the time of purchase and in the management of your property.

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Achieve optimal profitability through high occupancy rates

Is it possible to optimize your purchase to then rent on Airbnb?

Of course, some elements are essential, such as the living area of the property. When you have the opportunity, do not hesitate to invest in a 30 m² small apartment, as you will have the possibility of accommodating up to four people.

Also favor the location near a nerve center, shops or the city center. Then, the general layout of the property and its interior decoration will influence the pricing.

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