Energy-Inefficient
Properties:
End of Rentals?

Ban on renting energy-inefficient properties - Chalet in La Plagne with improved energy efficiency for rental

The ban on renting energy-inefficient properties, introduced by the Climate and Resilience Law, aims to combat energy-wasting housing by imposing restrictions on properties classified as F and G in the Energy Performance Diagnosis (DPE). For now, this measure applies only to long-term rentals, but with the climate crisis intensifying, many wonder if this ban could soon extend to tourism rentals.

1. Current Regulation
for Energy-Inefficient
Properties

The Climate and Resilience Law, enacted in August 2021, represents a turning point for owners of energy-inefficient properties. Here are the key steps:

  • Since August 2022: Rent increases for properties classified F and G have been frozen, preventing any adjustments.
  • Since January 2023: Properties classified G, considered "the most energy-consuming" with energy consumption above 450 kWh/m²/year, have been banned from rental.
  • 2025: All properties classified G will be banned from rental, regardless of energy consumption.
  • 2028: Properties classified F will no longer be allowed to rent.
  • 2034: Properties classified E will also be banned from rental.

These steps primarily target long-term rentals. However, given commitments to the energy transition, some associations and policymakers are considering extending these bans to short-term and seasonal rentals, often listed on platforms like Airbnb.

2. Why Target
Tourism Rentals?

Tourism rentals account for a significant share of properties in certain French regions, especially in mountainous, coastal, and urban areas. As they are often secondary residences, they currently escape the rental ban on energy-inefficient properties. However, the environmental footprint of tourism is considerable, and several factors motivate the idea of extending this ban:

  • Reducing the carbon footprint: Properties classified F and G consume disproportionate amounts of energy, often due to poor insulation. In winter, for example, these properties require intensive heating, particularly in mountainous tourist regions.
  • Encouraging energy renovations: If the ban extends to seasonal rentals, it would incentivize secondary residence owners to undertake renovations to improve the energy efficiency of their properties.
  • Making accommodations more attractive to eco-conscious travelers: With growing ecological awareness, travelers are increasingly favoring properties that meet environmental standards.

3. Economic Impacts
for Owners

Extending the rental ban to seasonal energy-inefficient properties could create challenges for secondary home owners. Bringing some properties, especially older ones, up to energy standards represents a high cost, and current subsidies, such as MaPrimeRénov’, only cover part of the work.

For owners of tourism rentals, this could result in:

  • Significant renovation costs: Insulation, window replacement, heating system modernization, etc.
  • A risk of reduced profitability: Some owners, faced with these expenses, might choose to withdraw their property from the rental market, reducing supply in tourist regions.

4. Future Perspectives
for Rentals

For now, extending the ban on renting energy-inefficient properties to tourism rentals is not yet included in the law. However, several proposals have been made, and climate change advocacy groups are calling for an extension of these measures. If such regulation evolves, several aspects could be considered:

  • Creation of a transitional period: to allow owners to comply with the standards.
  • Specific subsidies and aids: for secondary residences, enabling owners to adapt their properties to energy requirements without compromising profitability.
  • Geographical distinctions: Depending on the environmental sensitivity of certain areas (mountains, protected zones), regulations could be stricter or more lenient.

5. Advice to Anticipate
Future Regulation

While waiting for a potential extension of the ban, seasonal rental owners can take proactive steps to improve their property’s energy performance now:

  • Conduct an Energy Performance Diagnosis (DPE): to identify the property’s weaknesses in terms of insulation and energy consumption.
  • Opt for targeted energy renovations: Insulating the attic, replacing windows, or installing an eco-friendly heating system can significantly improve a property’s energy rating.
  • Explore available aids: In France, MaPrimeRénov’ and other programs help reduce the cost of energy renovations, even for secondary residences, under certain conditions.

Towards More
Eco-Responsible Rentals?

If the ban on renting energy-inefficient properties were extended to tourism rentals, it would mark a significant step toward the ecological transition of the real estate sector. Secondary home owners would then need to invest in improving their property’s energy efficiency to keep it on the rental market.

By anticipating these potential regulatory changes, owners can both enhance their property’s value, reduce its environmental impact, and meet the expectations of a clientele increasingly concerned about the ecological footprint of their vacations. Future legislative developments will clarify whether renting low-performance properties will remain possible, including for short-term rentals.