When we talk about short-term rentals, our first thought turns to the known rules: declaration at the town hall, the 120-day limit, taxation...
However, there is a point that is often overlooked: as soon as an intermediary becomes involved in property management, another legal framework applies: the Hoguet Law.
The Hoguet law applies to anyone who habitually intervenes on the property of a third party.
This applies to:
- Rental or subletting
- Holiday let
- the management of a property
- or a mediating role
In short: as soon as you are not managing your own property, you could be affected.
Is short-term rental included?
The law defines seasonal rental as a non-renewable rental of a maximum of 90 days. As soon as there is a management mandate, the activity is therefore considered to be property management.
So no, the short duration is not outside the scope and can fully fall within the remit of the law.
The real issue: who are you acting for?
If you manage your own property → there is no problem
If you are intervening for someone, be careful, as what seems to be a simple service could actually become a regulated activity.
Concretely, this could be:
- manage bookings
- organise stays
- to collect rent
- manage a property
Very concrete obligations
If you are concerned, you cannot pretend that nothing is wrong.
The law generally requires:
- A professional card issued by the Chamber of Commerce and Industry
- professional indemnity insurance
- a financial guarantee (in the case of fund management)
- A written mandate with the owner
No sum can be requested before the official completion of the transaction.
Money: the real tipping point
As soon as funds are handled, the rules become significantly stricter: it is no longer a simple service, but a strictly regulated activity.
- Administrative obligations
- accurate tracking
- Mandatory supporting documents
It is no longer a simple service, but a strictly regulated activity.
Real sanctions if this is not respected
One might think that this framework is theoretical. In reality, the sanctions are very concrete:
- up to 6 months in prison and a €7,500 fine
- up to 2 years and €30,000 in some cases
- contracts called into question
- liability incurred, even for a company
Key takeaways
The Hoguet law is not an administrative detail.
It applies as soon as you act on behalf of a third party, lays down precise rules and directly engages your responsibility
Short-term lets may be affected. You can manage a rental for someone, but it's never a minor undertaking.
The presence of a written mandate is essential to avoid any risks.
