Costs and Benefits of Hiring an Accountant for LMNP
Costs and Benefits of Hiring an Accountant for LMNP Are you a non-professional furnished rental (LMNP) owner and unsure about hiring an accountant? This article
Many tenants have taken advantage of the rise of online short-term rental platforms (such as Airbnb) to “sublet” their apartments temporarily (or even permanently, for those who take it to the extreme!), particularly during their vacation periods.
One of the major issues raised by the democratization of short-term rentals is subletting and its general prohibition.
Indeed, Article 8 of the 1989 law outright bans the paid subletting of residential properties. As such, if you are a tenant, you are not allowed to sublet the property to another tenant for a fee, meaning in exchange for rent.
In case of a dispute, if it is proven that a tenant has engaged in subletting, the landlord can request the termination of the lease as well as the return of the rents paid by the subtenant, as they are considered civil fruits (3rd Civil Chamber, September 12, 2019).
However, like any rule, there are exceptions established by law and case law:
A tenant may sublet for a fee if both of the following conditions are met
The tenant must obtain written consent from the landlord regarding the principle of subletting and the rent amount. This written agreement must be attached to the sublease contract.
The sublease rent must be lower than the rent in the main lease.
For partial subletting (shared occupancy between the main tenant and the subtenant), the calculation must be made pro rata based on the area occupied by the subtenant.
For full subletting, the maximum rent is that of the initial lease.
In principle, subletting does not result in any change in the landlord’s situation. The landlord maintains no legal relationship with the subtenant. The relationship between the tenant and subtenant is governed solely by the provisions of the Civil Code relating to leases, as well as the 1989 law and its amendments.
The primary tenant must uphold their obligations as stipulated in the lease agreement and is fully responsible for the subtenant with respect to the landlord. However, in cases where the tenant fails to meet their obligations, the landlord can take action against the subtenant (and vice versa!).
Be cautious of the risks when your tenant asks for authorization to sublet their apartment! Qlower offers its clients access to experts who can review their leases and ensure their legal compliance.
This service is free during the launch period (though spots are limited!). Don’t hesitate to contact our team if you have any doubts or simply want peace of mind.
Costs and Benefits of Hiring an Accountant for LMNP Are you a non-professional furnished rental (LMNP) owner and unsure about hiring an accountant? This article
Qlower : Your Online LMNP Accountant Congratulations on owning one or more rental investments! Whether they are offered for rent unfurnished or furnished, you are
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