Stricter legislation for Airbnb rentals in Lyon

Following the meeting of the Lyon Metropolitan Standing Committee on March 25, 2022, stricter regulations for Airbnb rentals were decided. This new regulation takes effect on June 1, 2022, and complicates the process of obtaining change-of-use authorizations for tourist rentals by introducing a compensation requirement. Only tourist accommodations in the city center and those larger than 35 square meters in the rest of Lyon are affected by this change. But what exactly is this compensation system?

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Regulations for tourist rentals in Lyon

Setting aside the new regulations for a moment, let's look at the steps for renting out a tourist property in Lyon. For seasonal rentals, it is necessary to distinguish between primary and secondary residences being rented out. Primary residences can be rented for a maximum of 120 days per year. Beyond this period, their status changes.

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To rent out primary and secondary residences, you must:

• Register your property as a tourist rental: by filling out the declaration form based on the location of your property (City of Lyon or elsewhere). Display your registration number on all booking platforms: this number is generated by the online declaration service in your personal account after you have registered your property as a tourist rental.

• Pay the tourist tax: this is calculated based on the number of nights you have collected from travelers over a certain period. For the city of Lyon, collection periods are quarterly, and payment is made online after declaration:

• 1st quarter: declaration before April 20 2nd quarter: declaration before July 20 3rd quarter: declaration before October 20 4th quarter: declaration before January 20

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For renting out secondary residences, there is an additional step: the application for a change-of-use authorization. Once this authorization is obtained, you can follow the steps mentioned above. Starting June 1, 2022, the change-of-use authorization becomes more complex due to the compensation principle that the metropolitan area has decided to implement.

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New regulations for Airbnb rentals starting June 2022

Compensation principle for the Lyon metropolitan area

As in the Basque Country, the Lyon metropolitan area has decided to impose a compensation principle for tourist rentals. Starting June 1, 2022, to obtain the change-of-use authorization required to rent out a secondary residence, you must comply with the compensation principle.

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This compensation principle consists of balancing the short-term rental of a property (for tourism) with the creation of a property dedicated to long-term use (residential). Therefore, if you decide to rent out a property as a seasonal rental, to obtain your change-of-use authorization, you must compensate for this rental by converting a space not intended for residential use (such as an office or commercial space) into a home. The criteria for the compensation to be accepted are:

• both properties are located in the same district both properties have the same surface area

This new procedure is intended to provide and encourage the creation of residential housing, thereby reducing tension in the Lyon real estate market, lowering property prices and rents, and easing pressure on the housing supply in Lyon. In short, it is about compensating for the "loss" of a residential property to seasonal rentals.

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Which areas are affected by this new condition for change-of-use authorization in Lyon?

The entire Lyon city center is subject to the compensation principle. All owners, at the time of their change-of-use authorization request, must prove that they also meet the compensation requirement by providing a file containing:

1. the form for the change-of-use request a notarized certificate, a sales agreement, or a deed of sale for the commercial space that will serve as the future residential property for rent

The file must be sent to the following address: urbanisme.usages@mairie-lyon.fr.

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For owners of seasonal rentals outside the city center, only properties of 35 square meters or more are also subject to the compensation principle to obtain a change-of-use authorization.

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Properties smaller than 35 square meters outside the city center are not subject to this, but must still apply for a change-of-use authorization, though without the need to compensate by creating a residential unit. Change-of-use authorizations outside the city center are limited based on location.

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Summary of new regulations for Airbnb rentals in Lyon

• Introduction of the compensation principle: one tourist rental = one residential unit
• Converting non-residential space into housing
• The compensation principle is required to obtain the mandatory change-of-use authorization for renting out secondary residences on Airbnb.
• Primary residences rented for fewer than 120 days per year are exempt
• Secondary residences in Lyon's city center are automatically subject to the compensation principle
• Secondary residences outside the city center larger than 35 square meters are subject to the compensation principle.

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Need help renting out your Airbnb in Lyon? We are here to assist you with managing your short-term rental and to answer all your questions. Feel free to contact us!