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Why Should You Invest in Airbnb?

In terms of seasonal rental, there are many possibilities. Currently, the trend is towards renting from one person to another, as this solution offers very interesting opportunities from a tax point of view, while obtaining a significant additional income.


Making an Airbnb investment to obtain an additional source of income

Since the creation of Airbnb, the community platform has not stopped growing. It has grown incredibly and today it is an essential site when you want to take advantage of a rental investment. It is exactly the same case in France and this is why many people choose to invest in Airbnb.


Airbnb can be a great source of addtional income.

In this context, the exchange between the other and the traveler is done only through the platform. The negotiations are done between the two parties, without the need to go through another intermediary. For the owner, it is a real boon to rent a property, whether it is his main residence or his second home.


By adjusting the price to the market rate, the owner can earn additional income. Nevertheless, be aware that there are many rules to consider before buying to rent in Airbnb.


Buying for Airbnb with a new property

If you decide to invest in a new home, you must have the status of non-professional furnished renter, i.e. LMNP. This way, you respect the legislation in force on the French territory, but you also have reduced charges. It is important to know that the majority of the targets are interested in renting furnished accommodation, because it is a temporary stay.


If you are wondering about the tax system, you should know that these elements are directly governed by the industrial and commercial profits. But you have to be careful with the amount of rent you pay. As long as you do not exceed the ceiling of 72 500 € per year, you can remain on the system of industrial and commercial profits. Otherwise, you will be subject to another tax regime and social charges.


Therefore, it is imperative to make the declaration of your incomes under penalty of being sanctioned.


Why is it interesting to buy to rent in Airbnb?

Once you have LMNP status, you can start renting out your property on a seasonal basis. It is a particularly buoyant market, but also encouraged by the government. It will be necessary to acquire a new home and in such conditions you will benefit from an exemption of the property tax for a period of two years. This privilege is a strong incentive to make a rental investment.


But that's not all, it's a greatly simplified status, because there are no particular administrative procedures to set up on a short-term rental. The only requirement is to make a declaration at the town hall and you should know that other obligations have been imposed for towns of more than 200 000 inhabitants. You must take an additional step at the town hall to obtain a registration number. If you do not, you are in violation of the law.


Regarding the rule for cities with more than 200,000 inhabitants, the declaration corresponds to a change of use for a primary residence as well as for a secondary residence. Regardless of the duration of the lease, it should not be forgotten that tourist rentals are particularly regulated. Therefore, it is imperative to verify this before investing.


Is an Airbnb investment promising?

Many businessmen prefer short-term rentals on the Airbnb.com platform. But on your side, if you have never tried it, you certainly have many questions about the performance of the investment. As long as you are acquiring in a popular area, you are able to charge an interesting price, which is an excellent way to have additional income.


The market is therefore particularly beneficial for any person wishing to start up on the Airbnb.com platform. But be careful, this is different if you want to rent more than 120 nights per year. Indeed, the legislation remains strict and whether it is for a primary or secondary residence, it is forbidden to make a seasonal rental more than 120 days out of the year.


Why choose an Airbnb concierge?

As you can see, there are many rules that must be respected. On your side, you want to generate additional income from Airbnb, but you don't want to waste time in tax and administrative procedures. In such a case, why not consider working with an Airbnb concierge service like Upperkey.


By entrusting a professional concierge service like UpperKey, you can relax and enjoy your profits stress-free.

This is a particularly comprehensive service that allows you to be completely relieved of the various technical and administrative constraints. You entrust the management of your property directly to a professional agency and you collect your income at the end of each month. As you can see, this is a greatly simplified solution that will leave you with a lot of free time and above all you don't have to deal with the specificities of the platform.


How much income can you expect after buying to rent on Airbnb?

To be honest, the rental return depends on different factors. The size of the property, its location, the number of bathrooms, the number of bedrooms and of course its general decoration.


As a result, you can expect a profitability three times higher compared to a traditional lease. But for that, it is imperative to invest in a tourist city as it is the case in Biarritz, Anglet, Bayonne, Bordeaux, Cannes, Paris, Lyon, Marseille or Toulouse.


Touristic cities like Cannes are popular among guests and would generate more profit.

Of course, in order to generate maximum income, you must take into consideration the occupancy rate. Generally, this is between 40 and 60 percent for the most touristy cities. But this is not the only factor, because if you decide to rent in a city known for its festivals and congresses, as is the case in Cannes, prices are literally boosted while the occupancy rate is not necessarily high.


What advice do you have for renting on Airbnb?

If you decide to buy a property on your own to rent it on Airbnb.com, you have to put all the chances on your side by doing a market study to buy first a property according to its location. Then, you must optimize the space to have a maximum of sleeping and bathroom. You should also be careful with the decoration, as it will stand out on the photographs in your ad. If in doubt, go through an Airbnb concierge, as they will be able to provide you with all their expertise.