Short-term rental: Why invest in a commercial space?

You are likely aware that new regulations now govern short-term rentals. As a property owner in Paris, Bordeaux, Marseille, Lyon, or any other city with more than 200,000 inhabitants, you must follow specific rules when renting out your primary or secondary residence on booking platforms like Airbnb, Booking, or Abritel.

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‍Since December 1, 2017, French cities with over 200,000 inhabitants have progressively implemented the measures mandated by the April 30 Airbnb Decree. You can no longer rent your primary residence for more than 120 days per year, and you must obtain authorization for a change of use for your secondary residence. This authorization may be subject to financial compensation.

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Additionally, a registration number must be included on all your listings, regardless of the platform you use for your short-term rental. To ensure compliance, some platforms, such as Airbnb, require you to specify the property's status before it goes live, namely whether it is:
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• a primary residence (120 days/year maximum)
• a secondary residence (change of use authorization required)
• a professional tourist accommodation or commercial space

In this article, we will focus on renting out a commercial space for short-term stays.

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Commercial space

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

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Why choose commercial spaces?

Rent all year round

As you have gathered, when you invest in a commercial space, you retain its commercial status, and it is not your primary residence. In this case, you can rent your property on a short-term basis all year round on Airbnb or Booking. However, you must ensure that your commercial space is adapted to the needs of short-term or seasonal guests (equipped kitchen, internet, furnished) and, most importantly, that your condominium bylaws allow for the commercial use of your unit.

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Maximize your space's profitability

The layout of commercial spaces often allows you to optimize rental profitability. Most commercial spaces are located on the ground floor or first floor, making your listing more attractive than a seasonal rental on the 5th floor (without an elevator)! Furthermore, the structure of a commercial space often allows you to optimize the space available for your guests. A commercial space may have very high ceilings, allowing you to install a mezzanine sleeping area, or have flexible space for an additional bedroom. This allows you to charge a higher nightly rate than for a standard two-person rental.

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Meeting rental demand

Let's not forget that with over 89 million foreign visitors in 2017, France is the world's top destination! Moreover, the rise of seasonal rental platforms (like Airbnb) represents 20% growth in the seasonal rental market—it is clearly booming!

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Maximize your income

Once your property is comfortably equipped and ready for rent, you can start to maximize your income. However, as a real estate investor, we know that your need for profitability is even greater. That is why we guarantee that choosing short-term rental is the right move.

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Unlike long-term rentals, you won't face issues with unpaid rent, and you can charge a higher nightly rate. If you do not wish to manage your commercial space yourself, you can call upon management and concierge companies dedicated to short-term rentals like Welkeys. Check-in, check-out, multi-platform listing management, guest communication, cleaning, linens, and pricing strategy: we handle the complete management of your rental investment.