What you should know about obtaining a rating for your holiday rental?
What is a holiday rental?
« Furnished villas, apartments or studios, for exclusive use by the tenant, offered up for rental to a passing customer whose stay is distinguished by the following characteristics: renting by the day, week or month, not taking up residence and not exceeding 120 days. » (French Tourism Code).
The rating standards have been updated to enhance competitiveness through improved facilities and services. The new standards thus contain 112 control criteria (some of them mandatory and others optional) and are more demanding.
The 4 key areas:
– Qualitative rating criteria
The rating criteria are customer-oriented: obtaining a rating now requires a certain level of compliance with regard to the quality of the facilities and services provided.
– Updated rating criteria
The rating criteria are determined following a process of full collaboration with all the national players concerned (professional bodies, consumer representatives, the government). They are set up in a scoring system, and are now to be revised every 5 years.
– A rating awarded for a period of 5 years
Obtaining a star rating is a purely voluntary endeavour, and the inspection of the accommodation is carried out by accredited and approved inspection bodies, based on rating criteria approved by decree. To preserve the validity of star ratings, accommodation is now to be evaluated every 5 years.
– One single rating index going from 1* to 5*
In order to give tourist customers a reliable set of standards, each accommodation is now given a rating of between 1* and 5*. All rated accommodation is thus evaluated according to three main areas: the level of comfort offered by the accommodation, the quality of the facilities provided in the establishments, and the codes of practise in play concerning environmental impact and accessibility to customers with disabilities.
Why obtain a rating for your holiday rental?
A rating is reassuring for customers
The success of a holiday strongly depends on the quality of services provided by the accommodation.
What with all the scams on the internet, people are justifiably wary when booking their holidays: there’s a real need to make them feel supported and reassured.
With this in mind, the rating system is a way to offer customers reliability, showing them that property owners are committed to providing quality service:
– As an owner, you receive assurance that your facilities are in line with customer expectations.
– The customer knows what to expect when booking your holiday rental.
A tax advantage
« Income related to the rental of furnished accommodation listed as « holiday rental » has a standard abatement of 71%, as it belongs to a microenterprise regime; whereas the standard abatement for income from rentals not listed under the microenterprise regime is only 50%! ».
Maintaining a flat-rate tourist tax
As of January 1st, 2019, holiday rentals that are not rated or whose rating is pending are subject to a so-called « proportional » tourist tax, corresponding to 5.5% (additional tax (TAD) included) of the price per night per occupant. This amount is limited to the threshold applicable to 4* hotels (€2.53 including TAD in 2019).
Eg.: €1,050 per week / 7 days = €150 per night – €150 / 2 people = €75 per night and per person – €75 x 5.5% = €4.125 becomes the reference rate of the tourist tax per night and per person.
But since the tax is limited to the 4* hotel threshold, it can be no greater than €2.53 in 2019. Before the reform: €0.88 x 2 = €1.76 per night for 2 people. After the reform: €2.53 x 2 = €5.06 per night for 2 people.
Obtaining a rating for your holiday rental allows you to stick to a flat-rate tourist tax, one that is determined according to the number of stars.
Membership to the national holiday cheque agency
Holiday vouchers involve:
– 4 million beneficiaries (+ 170,000 tourism providers). In France, 1/3 of all holiday vouchers are spent on accommodation.
– Free listing on the website www.ancv.com
– A reassuring and convincing system of payment – it’s useful to emphasize this – that also prevents the risk of not getting paid.
What steps to follow
The procedure detailed here below comes at a fee, that you will be required to pay.
The owner requests a rating inspection from the Tourist Office and receives a file containing:
– The presentation flyer.
– A table that shows the rating index so you can determine what category your accommodation comes under.
– The CERFA n ° 11819 * 03 rating request in order to schedule a date for the inspection visit.
– The general terms and conditions of sale, setting out mutual obligations.
– A government form to fill out with a description of your accommodation.
– A form to fill out in the event of a claim following the rating inspection.
Once the completed file is received, you will be given an appointment within the following 3 months (except in July-August).
Our organization carries out an inspection visit and then, within a month at most, sends the owner the inspection certificate that comprises the « Rapport de Contrôle » (inspection report), the « Grille de Contrôle » (inspection grid) and the « Décision de Classement » (rating decision) for the category shown in the inspection report. All the information is sent out in a format specified by the organization: digitally (by email) and on paper (by mail) within the 30 days following the rating inspection.
After receiving the inspection certificate, the owner has a period of 15 days to reject the rating proposal. At the end of this period, and in the absence of such a refusal, the rating is acquired and has a validity of 5 years. The owner may use the « Décision de Classement » (rating decision) document to demonstrate the holiday rental rating to authorities (tax, etc.), customers, institutions and so on.
Price of the inspection visit
The price of the inspection varies according to the surface area of your holiday rental:
– Rental with a surface area of less than 60 m² inclusive: €100 inc. tax.
– Rental with a surface area of 61 to 150 m² inclusive: €150 inc. tax.
– Rental with a surface area of over 150 m²: €185 inc. tax.
– A discount of 25% applies to the rating process for each additional rental by the same owner (taking the rental with the largest surface area as the first to be rated)..
This price includes::
– Receiving and processing your request.
– The rating inspection.
– Travel expenses for any inspection within the Grimaud municipality.
– Payment should preferably be made by cheque, payable to the public treasury.
The price does not include::
– The cost of a potential counter-inspection:
o For a rental with a surface area of less than 60 m² inclusive: €50 inc. tax
o For a rental with a surface area of 61 to 150 m² inclusive: €75 inc. tax
o For a rental with a surface area of more than 150 m² inclusive: €92.50 inc. tax
– Travel expenses for a rating inspection outside the municipality of Grimaud: €0.70 inc. tax / km, taking Via Michelin as base.
The day of the rating inspection
On the day of the inspection, your rental accommodation must be shown in its usual rental condition; that is, ready for renting. The owner, or his/her agent, must be present.
The criteria grid is comprised of mandatory points and ‘à la carte’ (optional) points.
To obtain a rating, the owner must score at least 95% of mandatory points by the end of the inspection.
The remaining 5% can be compensated through ‘à la carte’ points.
Criteria checked as NA (Non Applicable) during the inspection will not be taken into account for the rating decision.