Grand Annecy: New regulations for short-term rentals?

Elected officials are preparing it; while not yet officially announced, owners of vacation rentals in Annecy and the Greater Annecy area should prepare for upcoming restrictions on renting out their furnished tourist accommodations.

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The full details of the new regulations for furnished tourist accommodations in Greater Annecy are not yet known, but it is already possible to get an idea of what will come into effect during 2023. A new threshold seems to have been crossed last year, prompting the city to step up its oversight of vacation rental owners' activities.

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IMPORTANT: The implementation of these new regulations for furnished tourist accommodations in Annecy, initially scheduled for June 1, 2023, was suspended by the Grenoble Administrative Court on July 12, 2023. The Court had been petitioned by the Haute-Savoie Concierge Services Union last April. Deemed to be “a sufficiently serious and immediate harm” to the clients of concierge companies, the new regulation is currently revoked.

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Why regulate furnished tourist accommodations in Annecy more strictly?

The desire to further regulate furnished tourist accommodations in Greater Annecy is driven by the Agglomeration's goal of fostering more responsible tourism and, above all, a better balance between short-term and traditional long-term rentals. The aim is to offset the loss of residential housing from the real estate market, which is causing growing tension in housing supply and demand.

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In the past, prompted by booking platforms, the city had already implemented a requirement to obtain a registration number to post a vacation rental listing online. This was an initial tool for regulation and for facilitating the census of furnished tourist accommodations in the municipalities of Greater Annecy.

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The registration number: an initial regulatory tool

Thanks to this registration number, the city has been able to more easily verify compliance with regulations among owners. Indeed, platforms like Airbnb provide a summary table at the end of the year of the furnished tourist accommodations listed using the registration number, their status (primary or secondary residence), as well as the owner's name and the number of nights booked per property.

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Once this document is received, municipalities can, for example, ensure that primary residences are only rented out for 120 days per year or that secondary residences offered for rent have been properly declared after obtaining authorization for a change of use. These are two rules already in effect in Greater Annecy for short-term rentals.

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What will the new restrictions for furnished tourist accommodations in Greater Annecy entail?

A limited number of furnished tourist accommodations based on the sector

Generally speaking, for the city of Annecy, a maximum cap of 1,757 furnished tourist accommodations will potentially be established, and the city will be divided into 3 distinct zones. In reality, given the current location of vacation rentals, it is not possible to distribute the properties equally. Indeed, 70% of the furnished tourist accommodations in Greater Annecy are concentrated in Annecy. Furthermore, 60% of that 70% are clustered in the Old Town (Vieille Ville) district.

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The municipality plans to:

• reduce furnished tourist accommodations by 40% in Zone A: Old Town, Courrier, and Marquisats
• reduce furnished tourist accommodations by 20% in Zone B: lakeshore, inner-ring road, and train station area.
• maintain current levels of furnished tourist accommodations in Zone C: the rest of the municipality.

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These reductions will certainly lead to the withdrawal of approximately 500 properties from the short-term rental market in favor of the long-term rental market in Annecy.

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Increased complexity in obtaining a change-of-use authorization

To limit the number of furnished tourist accommodations in these zones, it appears that the conditions for granting change-of-use authorizations for secondary residences will become more complex.

There will be no compensation principle as is the case in most cities that have recently applied restrictions on furnished tourist accommodations, but rather a cap to limit the short-term rental of secondary residences. This cap will translate into an average quota for granting change-of-use authorizations based on the location of the property in question. Consequently, obtaining a change-of-use authorization will no longer be as simple.

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New change-of-use authorizations granted will be valid for 5 years with tacit renewal depending on the Greater Annecy municipality. The issuance procedures are not yet known, but a waiting list—the details of which are still unknown to us—will likely be implemented for owners who have not obtained authorization.

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How can I offer a property for short-term rental in Greater Annecy?

Until further notice, the process for listing a property for short-term rental in Grand Annecy remains unchanged. Owners of a primary residence who wish to offer their home for short-term rental must:

1. Register their property as a furnished tourist accommodation with the town hall using the dedicated platform provided. Following registration, you must display the registration number obtained on booking platforms to publish your vacation rental listing. Pay the tourist tax collected on nights booked via the dedicated platform. You may only rent out your primary residence for up to 120 days per year.

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To rent out a secondary residence in Grand Annecy, the process is almost identical, with one exception:

1. Before registering your property as a furnished tourist accommodation, you must first obtain authorization for a change of use from the town hall. Then, you must register your property as a furnished tourist accommodation with the town hall using the dedicated platform provided. Following registration, you must display the registration number obtained on booking platforms to publish your vacation rental listing. Pay the tourist tax collected on nights booked via the dedicated platform. You may only rent out your primary residence for up to 120 days per year.

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We will keep you informed as soon as the new regulations regarding furnished tourist accommodations in Annecy come into effect.

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