What are the features of a bail mobilite / mid-term rental ?


What’s a bail mobilite ?

The law ELAN (23rd November 2018) has introduced a new type of rental contract in its article 107 : the bail mobilite.

The bail mobilite is a contrat signed by the owner of a furnished self-catering accommodation, and a temporary tenant (students, interns, employees on a job mission of professional training …).

This contract is edited for a stay between 1 and 10 months, and can neither be renewed nor extended. The duration mentioned in the contract can be modified once, however the total length of stay must remain 10 moths.

At the date the contract comes into effect, the tenant has to be in one of the following situations :

  • Professional training
  • Higher learning
  • Apprenticeship
  • Internship
  • Voluntary commitment in civic service,
  • Job transfer,
  • Temporary professional mission.

At the end of the contract, if the tenant and the owner sign a new contract for the same apartment, this new contract must be a yearly furnished rental. The tenant can cancel the contract at any point, if the respects the one-month notice. The owner cannot terminated the contract before the contract’s end date (unless the tenant violates the terms of the contract).

Who can benefit from a mobility contract (bail mobilite) ?

Because it is compulsory that the reason for the mobility contract is strictly professional reason, the tenants who can benefit from this type of contract are necessarily traveling professionals or people in training. On the other hand, no age requirement applies to the mobility contract.

Some examples of possible tenants may include:

  • Students, for example from EM Lyon, Centrale Lyon, Universite Catholique UCLy, Universite Lumiere Lyon 2, Universite Jean Moulin Lyon 3, Universite Claude Bernard Lyon 1, etc. Wherever your place of study may be, Urban Sejour can offer you a comfortable furnished apartment;
  • Trainees, in particular medical or paramedical trainees at the HCL / Hospices Civils de Lyon or the Croix Rousse Hospital, or trainees from other fields;
  • Traveling professionals who come to Lyon for a mission or a transfer, including executives (or other employees), professionals coming to Lyon for a trade fair (such as the salon de Sirha or the Foire de Lyon), or again doctors, researchers, doctoral students, teams of workers, theater companies… Urban Sejour offers temporary apartments suitable for professional stays;
  • Expatriate professionals returning to France with their families and seeking a temporary accommodation, or even an apartment for a long-term stay.

Whatever your field of activity, the reason for your business trip or the location of your workplace, Urban Sejour will be able to offer you suitable self-catering apartments.

Features of the bail mobilite

  • A length from 1 to 10 months
  • Only for furnished apartments
  • Non-renewable contract : the owner gets his flat bakc automatically at the end of the contract and only a classic yearly contract at the end of the rental. However, the bail mobilite can be renewed one, if the whole stay does not exceed 10 months.
  • No security deposit can be asked of the tenant.

Security deposit

The owner is prohibited from demaning a security deposit, but he can request a deposit that is not cashed.

In this case, the tenant can resort to the garantie Visale (warranty) for :

  • Students of apprentices,
  • Other tenants.

The accommodations managed by Urban Sejour are perfectly adapted to a mid-term stay with a bail mobilite contract. All our apartments are furnished tastefully and very well equipped for professional stays, all taxes and charges included in the rent price.

How to declare a mobility contract and what is its French tax law

For seasonal rental, ie the rental of a furnished apartment for a short period of 90 nights maximum, the accommodation must be declared in advance to the town hall, as a furnished tourist apartment. The mobility contract (bail mobilite) does not require such a declaration.

On the other hand, chosing a bail mobilite does not have any consequences with regard to the owner’s French tax regime. the tax receipts are imposed within the framework of the traditional / classic furnished rental.

If the owner earns less than 70,000 Euros of rent per year and he has not chosen the regime reel, the microfoncier regime will be taxed, which has a reduction of 50%.

However, if the owner is in the regime reel or receives more than 70,000 Euros of rent per year, he will be able to deduct all his charges and expenses and apply depreciation. In the event of a property deficit, the deficit will be deductible from the owner’s income, depending on the regime to which he is subject: either the professional furnished rental regime (also known in France as LMP), or the non-professional furnished rental regime (also known as LMNP).

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