Short-term rentals in Nice: is it still possible to rent out secondary residences?

Vacation rental owners are increasingly preparing for changes in regulations surrounding furnished tourist accommodations in major cities. Nice is no exception and has seen its regulations become more complex since July 2021. Renting out a secondary residence has become more tedious.

‍

Why are cities implementing restrictions on furnished tourist accommodations?

The issues are the same as elsewhere: the excessive presence of so-called "Airbnb" rentals leads to a reduction in housing available for long-term residents, which in turn drives up real estate prices in Nice (rents, property values), resulting in a very tight real estate market. Hoteliers also suffer from the proliferation of seasonal rentals, which represent significant competition for their market.

‍

The goal of implementing stricter regulations for furnished tourist accommodations is to allow residents, hoteliers, and vacation rental owners to coexist on relatively equal terms in Nice.

‍

Renting out your primary residence in Nice for seasonal use

The procedure for renting out primary residences in Nice remains unchanged despite the regulatory updates, as it is only possible to rent such a residence for 120 days per year. This limited rental duration is in itself a sufficient regulation.

‍

The rental process begins by declaring your property as a furnished tourist accommodation with the Nice city hall. Simply create an account on the platform dedicated to the tourist tax.

‍

Following registration, you can generate a registration number, which is now also mandatory to post your listing on booking platforms (Airbnb, Booking, Abritel, etc.). Once the property is listed, you will need to remit the tourist tax through this same platform.

‍

Renting out your secondary residence in Nice for short-term stays

Regulatory restrictions primarily concern the process of renting out secondary residences. The new requirement is to obtain authorization for a change of use under various conditions, which differ depending on whether the applicant is an individual or a legal entity.

‍

Procedure for individuals

As stated previously, to rent out a secondary residence as an individual in Nice, you must now obtain authorization for a change of use from the Nice city hall by filling out the form provided for this purpose. Once obtained, the authorization is valid for 6 years and is granted only once per tax household.

‍

If the owner wishes to continue their vacation rental activity beyond the 6 years, they must comply with the principle of compensation to obtain a new authorization for a change of use.

‍

The principle of compensation involves renting out two properties simultaneously: one dedicated to seasonal rental and another dedicated to long-term housing. For the compensation to be validated by the city hall—and thus to obtain the authorization for a change of use required for renting—both properties must be equal in size, and one of them must be a commercial space converted into housing.

‍

Furthermore, if an individual wishes to rent out more than one secondary residence, they must comply with the principle of compensation starting from the second property listed.

‍

Procedure for legal entities

Legal entities wishing to rent out one or more secondary residences in Nice are systematically subject to the principle of compensation to obtain their authorization(s) for a change of use. Thus, from the very first property listed, legal entities, such as real estate investment companies (SCIs), must prove that they comply with the principle of compensation.

‍

For both individuals and legal entities, once the authorization for a change of use is obtained, the process for renting is the same as for primary residences: declare your property as a furnished tourist accommodation, obtain your registration number, and pay the tourist tax.

‍

It is also important to keep in mind that the Nice city hall reserves the right to revoke granted authorizations for a change of use, even if the 6-year period has not yet expired.

‍

Establishment of a Housing Protection unit to oversee regulations

To monitor and enforce these new regulations, the Metropolis and the City of Nice have established a "Housing Protection" unit consisting of sworn officers who conduct inspections to ensure compliance with the new legislation. In the event of an infraction, they are authorized to intervene and issue official reports.

‍

Failure to comply with regulations regarding change-of-use authorizations can result in fines of up to 50,000 euros. If the infraction concerns the registration number, the fine can reach 5,000 euros.

We are here to support you in renting out your primary or secondary residence! We offer a comprehensive vacation rental management service to help you save time, optimize your rental income, and ensure your guests have a great stay.