Cross-Functional Pages

Glossary

All the terms related to contracts, taxes, and platforms, defined once and for all.

Short-term rentals involve three distinct sets of terminology: that of contracts, that of tax authorities, and that of platforms. None of these is difficult on its own, but they become complicated when combined, and the same word does not always have the same meaning in each context.

This glossary compiles the forty terms that appear frequently in this wiki and in our discussions. When a concept warrants more than just a definition, the page that covers it is listed.

Landmark

Two terms are often confused: you are required to pay property tax because you own the property, and the business property tax because you conduct business there. The two are cumulative.

Depreciation — The accounting allocation of the cost of property and furnishings over their useful life. Deductible only under the actual income tax system, and added back when calculating capital gains upon resale.

Fee Basis — The amount on which our fees are calculated: the rent actually collected, net of platform fees, excluding cleaning fees and tourist tax. Detailed on page 1.2.

Penalty — Amount due for each day of delay, following a formal notice that has remained unanswered for fifteen days. This applies to both parties and is capped at the replacement value of the unreturned items.

Endorsement — A written and signed amendment to the contract. It is attached to the contract itself. The formal requirements are set forth on page 7.1.

Student Lease — A nine-month furnished lease reserved for genuine students. The move-out date at the end of May is guaranteed only for this group.

Mobility Lease — A furnished lease lasting one to ten months, non-renewable, reserved for certain groups of people who are in training, on assignment, or being transferred.

Cessation of Business — Declaration to terminate your furnished rental business. Without it, tax notices will continue to arrive.

CFE — Business Property Tax. An annual local tax assessed by the municipality where the property is located, payable based on the business activity conducted there. Discussed on page 6.5.

Change of Use — A permit required by certain municipalities to convert a residential unit into a furnished vacation rental. Not currently required in Toulon.

Co-host — An access role for a platform account that allows the user to perform tasks without owning the account.

Setoff — The simultaneous extinguishment of two reciprocal debts, up to the amount of the smaller debt. This occurs automatically between certain, liquid, and due claims.

Damage Report — A document prepared within twenty-four business hours after a departure, which initiates the claims process with the platform or the insurance company.

Minimum contribution — The CFE floor is applied when the rental value of the property is low. This explains why a studio apartment and a large apartment sometimes incur similar amounts.

Payment Delegation — A mechanism through which the platform pays us directly the amount owed to us, thereby reducing your debt by that amount. This is not a payment collected on your behalf.

Joint Inspection Report — Inventory prepared and signed by both parties, including photographs. Reference document for any subsequent damage.

DPE — Energy Performance Certificate, rated from A to G. A minimum rating of D will be required as of January¹, 2034, for furnished vacation rentals.

Exclusive Marketing Agreement — Commitment to market the property on a short-term basis only through us. Does not apply to personal use, free loans, or long-term use after termination.

Integration Package — One-time setup service, starting at 360 euros (including tax), photo shoot included.

Housekeeping and Laundry Package — A fixed fee per stay, paid by the guest and then remitted to the property management company. Calculated once for your property, based on the size of the space and the number of beds.

Engagement Letter — A document that governs the provision of consulting services, separate from the concierge service contract and establishing a distinct liability.

LMNP — Non-professional furnished rental. General tax regime for most property owners.

Hoguet Act — Act of January 2, 1970, regulating real estate professions. The property management contract is not subject to this Act.

Tenant Search Mandate — A separate document from the property management contract, in writing and recorded in the mandate registry, required for long-term rentals.

Classified furnished rental — A furnished tourist rental that has been awarded a star rating following an inspection by an accredited organization. This entitles the owner to a 50% tax deduction under the micro-BIC regime, compared to 30% without a classification, and raises the revenue cap from €15,000 to €77,700.

Micro-BIC — Flat-rate tax system, with no accounting requirements, featuring a tax deduction and a revenue cap.

Formal Notice — A registered letter demanding compliance with an obligation. It triggers the start of the applicable time limits and determines both the penalty and late payment interest.

Multicasting — Publishing the same ad on multiple platforms, with schedules that are continuously synchronized.

Obligation of Means — A commitment to use all necessary efforts, without guaranteeing a specific result.

Capital gain — Profit realized upon the resale of the property. Since depreciation has been reinstated in the calculation, the benefit of the actual tax regime is no longer permanent but is partially deferred.

PNO — Non-Occupant Homeowners Insurance.

Notice Period — A one-month period between the notice of termination and the effective end of the contract. It applies to both parties, and no reason needs to be given.

Minimum and maximum prices — The limits you set that we will not exceed. These may be changed at any time by simple written notice.

Actual Tax Regime — A tax regime that requires bookkeeping, allows for the deduction of actual expenses, and permits depreciation of the asset.

Register of Mandates — A legal register in which real estate brokerage mandates are recorded, including mandates to find tenants.

Revenue per Available Room Night — A metric that combines occupancy rate and average rate. It is the only truly meaningful metric for assessing a property's performance.

Payment Split — Automatic distribution of a payment among multiple recipients as soon as it is received.

Dynamic Pricing — Adjusts the nightly rate based on actual demand, within the limits you've set.

Visitor Tax — A tax collected from travelers on behalf of the local government. Collected by booking platforms; your responsibility for direct bookings.

Property Tax — A tax levied on the ownership of real property. Not to be confused with the business property tax, which is levied based on business activity.

Rental Value — The basis for calculating the business property tax, as determined by the government.