The short-term rental market in France is entering a new era of stricter regulation, as the French National Real Estate Federation (FNAIM) has published a report clarifying which activities carried out by property management and concierge companies fall under legislation governing real estate brokerage and property management services.
The report comes at a time when France is stepping up oversight of short-term rentals, while implementing a new framework for the mandatory registration of tourist accommodation and stricter penalties for violations.
According to FNAIM, businesses involved in managing Airbnb-type properties cannot be considered mere service providers when they undertake activities such as publishing and managing listings, negotiating bookings, selecting guests, or signing rental agreements on behalf of property owners. In such cases, holding a specific professional license under the Hoguet Law is required. The law constitutes the main legal framework governing real estate brokerage and property management activities in the country.
By contrast, services such as property cleaning, key handovers, guest reception, linen changes, and the provision of tourist information are not considered activities that require special licensing.
The report places particular emphasis on the issue of handling funds. As highlighted, even holding or managing payments that belong to the property owner may legally be regarded as the management of third-party funds, a practice that requires a specific property management license. This interpretation seeks to put an end to a grey area that has existed within the short-term rental sector in recent years.
Strict penalties and fines
Strict penalties and finesPenalties for those operating without the required license are particularly severe. French legislation provides for fines of up to €30,000 for the unlawful handling of funds, while the new regulatory framework introduced by the Le Meur Law in 2024 allows for civil fines of up to €100,000 per property in cases of serious violations.
FNAIM’s intervention coincides with a broader effort by French authorities to strengthen oversight of the short-term rental market. Among the new measures are the mandatory registration of all tourist accommodations in a national registry, stricter tax rules, and enhanced inspections in cities with high tourism activity, such as Paris.
At the same time, the market is gradually moving toward greater professionalization. An increasing number of short-term rental management companies are choosing to obtain the necessary licenses or collaborate with licensed professionals, as compliance with the regulatory framework is becoming a significant competitive advantage.
This development is also of particular interest to other European markets, including Greece. The growing trend toward stricter supervision of short-term rentals, increased obligations for property managers, and greater accountability for intermediary service providers is becoming a common direction across several European countries, as governments seek to balance tourism growth, housing policy, and the orderly functioning of the real estate market.
