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US News Because of the coronavirus, short-term furnished rentals are on the edge

15:00  20 september  2020
15:00  20 september  2020 Source:   20minutes.fr

Illegal tourist rentals: the Court of Justice of the EU ruled in favor of the City of Paris

 Illegal tourist rentals: the Court of Justice of the EU ruled in favor of the City of Paris The judges were seized in 2018 by the Court of Cassation, itself seized by two owners of Parisian studios condemned for having rented their goods without the prior authorization of the Town Hall. The City of Paris has just won a major battle in its fight against Airbnb. On Tuesday September 22, the Court of Justice of the European Union (CJEU) issued its ruling in the case between the City and two rental companies of tourist accommodation - the companies Cali Apartments and HX.

While tourist rental has experienced a colossal boom in recent years, the health crisis has had the effect of a cold shower for many owners in need of vacationers to accommodate

La pandémie du coronavirus a refroidi les propriétaires de meublés de tourisme. © IStock / City Presse The coronavirus pandemic has cooled the owners of furnished tourist accommodation. SILVER - While tourist rental has experienced a colossal boom in recent years, the health crisis has had the effect of a cold shower for many owners in need of holidaymakers to accommodate

The rental investment has long allowed for individuals to build up an heritage , to finance subsequent projects or to secure income for their retirement. Some five million investors have made this choice.

Coronavirus. The British government does not rule out a new

 Coronavirus. The British government does not rule out a new lockdown © Daniel Leal-Olivas / AFP Outside a coronavirus testing center in East Ham, east London, this Thursday, September 17. The British government does not rule out resorting to a new general containment for all of England, a "last line of defense" but seeks to avoid such a measure by favoring the local restrictions which are multiplying, according to the Minister of Health Matt Hancock.

In this area, different schools exist between the followers of traditional rental and furnished tourism . Could the health context decide between them?

The attractions of furnished tourist accommodation

Seasonal rental has continued to develop in recent years, under the impetus of intermediary web platforms . While many individuals are content to rent their own home during their periods of absence, others have bought real estate in order to rent them to as many travelers as possible throughout the year, as part of the furnished tourist accommodation. .

Despite reinforced administrative and fiscal regulations, this solution has certain advantages. The rental period is daily, weekly or monthly, without ever exceeding more than 90 days for the same person, the contract is much less framed than for a classic rental and pricing is free. And the day you need the property to take a vacation yourself or to house a loved one, all you have to do is remove your ad.

Bar closes at 10 p.m.: in Paris, cafetiers between resignation and incomprehension

 Bar closes at 10 p.m.: in Paris, cafetiers between resignation and incomprehension © Christophe ARCHAMBAULT / AFP A few hours before the early closing of bars in the capital for two weeks, cafetiers in the Parisian district of Montparnasse are still hard to understand this measure. For them, it is a new net loss of turnover "impossible to recover". "We will do without, we have no choice." Like Stéphane, the Parisian cafetiers are looking gray this Monday a few hours before the mandatory early closing at 10 pm in the capital .

In terms of taxation, the status of non-professional furnished landlord (LMNP) also makes it possible to declare the rents received as industrial and commercial profits (BIC), with a reduction in the key, since you benefit from a reduction flat rate of 71% as long as the cash flow does not exceed 170,000 euros per year.

Towards a fall back on furnished apartments?

While tourist accommodation has boomed, the coronavirus pandemic has had the effect of a cold shower. All specialists agree that there will be an "after-Covid" in the real estate rental industry. Beyond the impact of the months of confinement, the limitation of international tourism frightens many owners who have realized the risk inherent in this rental strategy. Not to mention that in a context of strong competition, owners must adopt additional hygiene measures to reassure their future occupants. In addition to the usual change of linens after each stay, it is therefore necessary to thoroughly disinfect the entire accommodation.

Cruise ship with a dozen cases of Covid on board docks in Athens

 Cruise ship with a dozen cases of Covid on board docks in Athens © Copyright 2020, L'Obs The first cruise ship to return to Greece from containment docked at the port of Piraeus in Athens early this Tuesday, September 29, after the discovery on board of a dozen coronavirus contaminations, announced the Greek press agency ANA. The Maltese-flagged ship "Mein Schiff 6", operating for German tourism giant TUI, carries 922 passengers and 666 crew. 12 crew members on cruise ship sailing the Greek islands test positive for #coronavirus.

Consequently, some investors prefer to change their minds by turning in particular to traditional furnished rentals, which allow them to commit for a limited period (one-year or ten-month lease for the mobility lease), all by sparing the logistical complexity associated with a multitude of short stays. In addition, the taxation remains advantageous, since rents are also subject to the micro-BIC regime below 70,000 euros per year and give the right to an allowance for costs of 50%.

On the other hand, like an empty rental, it is necessary to adhere to the possible regulation of rents according to the geographical area, to respect a strict formalism for the transaction (contract, inventory of fixtures, security deposit, etc.) and think about insuring your property against possible damage and unpaid bills.

EconomyParking: The keys to investing without making a mistake EconomyStudents: A short rental for a specific audience, what does the mobility lease consist of?

Coronavirus. China, United States shun WHO vaccine access scheme .
© Dado Ruvic / Reuters Testing of future vaccines against Covid-19 is underway. More than sixty rich countries, but not China or the United States, have joined the mechanism put in place by the WHO to facilitate poor countries' access to the vaccine against the coronavirus, according to the list published on Monday, September 20 .

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