Investing in a commercial property for your Airbnb rentals

Since December 1, 2017, French cities with more than 200,000 inhabitants, such as Lyon, Paris, Bordeaux, or Nice, have implemented the measures mandated by the Airbnb Decree of April 30. You can no longer rent out your primary residence for more than 120 days per year, and you must obtain authorization for a change of use for your secondary residence. Furthermore, a registration number must be included on all your listings, regardless of the platform you use for your short-term rental. As a result, some cities are addressing the shortage of housing available for long-term rental. This raises the question: what other ways can a real estate investor benefit from the growing number of tourists in France? What is a commercial property? Why invest in one for your Airbnb rental, and what are the benefits?

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What is a commercial property?

By definition, a commercial property is a space where a commercial activity is conducted and a business is operated. This commercial activity must be independent and can be carried out by either an individual or a commercial company. In this context, using a commercial property for rental purposes is highly relevant, as it involves an independent activity that provides a service and entails hosting clients (Airbnb guests, Booking.com users, etc.).

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Why invest in a commercial property?

Rent all year round

Investing in a commercial property offers many advantages. The property already has commercial status and is not subject to the 120-day limit in cities with more than 200,000 inhabitants. You can rent your property on a short-term basis all year round on booking platforms like Airbnb or Booking.com. Consequently, it is necessary to renovate the interior of the commercial space to attract your clientele and generate sales. In other words, appropriate decor and complete amenities are essential to achieve maximum profitability.

Making your commercial property profitable

Secondly, the unique layout of commercial properties allows you to optimize space and charge a higher nightly rate. You might wonder how to make your short-term rental profitable. You can optimize your space by installing a mezzanine or using sofa beds, allowing your commercial property to accommodate various groups. Commercial properties can make this easier due to their locations and typical layouts. For example, ground-floor access means guests don't need to use an elevator, and high ceilings naturally create space for a mezzanine.

Meeting the demand

Investing in a commercial property is an excellent way to benefit from the 60 million guest arrivals on Airbnb worldwide between June 1 and August 31, 2018, including 6 million in France. Furthermore, Airbnb is among the top 10 booking platforms preferred by the French. In other words, 80% of French people book their vacations online. Consequently, we are seeing strong demand, and your commercial property will allow you to meet customer needs and achieve an optimal occupancy rate!

Maximizing your rental income

Short-term rentals generate 2.5 times more income than traditional rentals. Owning a commercial property allows you to rent on a short-term basis all year round (on Airbnb, for example). But why does short-term rental maximize your income? First of all, the winter truce resumed on November 1, 2018. The law stipulates that a tenant cannot be evicted from their home during this period, even if an eviction order has been issued by the courts. That said, with a short-term rental, you won't face issues with unpaid rent because you benefit from multiple bookings throughout the year. In addition, you can charge a higher nightly rate than for a long-term rental.

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Managing your commercial property

Being the owner of a short-term rental property can sometimes have certain disadvantages. You may lack the time to fully manage your commercial property. Welkeys, your Airbnb concierge service, supports you with listing creation, guest communication, check-ins, cleaning, and hotel-quality linens. Furthermore, Welkeys works to maximize your property's performance based on seasonality, square footage, and local events. This allows you to combine a high occupancy rate with quality!