Free accommodation concerns an increasing number of situations in France: family support, hosting a relative in difficulty, cohabitation in a dwelling where only one of the occupants is the owner or tenant. The legal framework is based on the loan for use (or commodat), an ancient mechanism from the Civil Code that allows a person to occupy a dwelling without paying rent.
The obligations that arise from this remain poorly understood. Tax declarations, impact on social benefits, formalization of the contract, insurance coverage: each step engages the responsibility of both the host and the guest.
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Loan for use contract: formalize before hosting
The law does not require a lease when no rent is paid. A classic lease would even be legally inappropriate, as the financial consideration is its central element. The applicable mechanism is the loan for use contract, provided for in Articles 1875 and following of the Civil Code.
This contract is not mandatory, but its drafting protects both parties. It sets the duration of occupation (determined or undetermined), the conditions for returning the accommodation, the distribution of current charges (water, electricity, maintenance), and the reasons for early termination. Without a written document, proof of the free accommodation relies on testimonies or informal exchanges, which weakens each party’s position in the event of a dispute.
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For anyone wishing to better understand the steps for free accommodation, drafting this contract is the first reflex to have, well before administrative declarations.
A rarely addressed point: when free accommodation concerns a second home, the owner remains liable for property tax and must check that their home insurance covers occupation by a third party. The loan for use contract also serves as proof for the insurer.
Tax declaration and free accommodation: what changes for each party
The guest must mention their situation of free accommodation in their income tax declaration. The corresponding box (“occupant free of charge”) appears in the section related to the main residence. This mention conditions the calculation of certain tax benefits and the amount of the housing tax on the main residences still concerned.
On the host’s side, no rental income needs to be declared since no rent is collected. However, if the tax administration finds that a disguised rent is being paid (regular transfer, financial contribution indexed to a market amount), reclassification as a rental is possible, with the associated tax consequences: taxation of the amounts received and a retroactive obligation to draft a lease.
The certificate of free accommodation plays a role of proof here. This document, drafted by the host, confirms that the guest resides at the indicated address without financial consideration. It must be accompanied by a copy of the host’s identity document. This certificate is also used for procedures with prefectures, banks, or any organization requesting proof of residence.
CAF and APL assistance: the real impact of free accommodation
Since the updates to CAF notices in 2023-2024, free accommodation must be systematically declared to the CAF, even when the host is a relative. This obligation already existed, but the funds now remind it more visibly in their simulators and change of situation forms.
The consequences vary depending on the type of assistance:
- APL (personalized housing assistance) and ALS (social housing allowance) are not paid to a person hosted for free, as these aids assume the payment of rent or a fee.
- The RSA may be maintained, but the amount is recalculated taking into account the absence of housing costs, which often leads to a downward reassessment of the amount paid.
- The activity bonus follows the same logic: the absence of rent reduces the charges considered in the calculation, which modifies the final amount.
Failing to declare this situation exposes one to an overpayment that the CAF may claim over several years, with penalties in the case of proven fraud. Controls have intensified in recent years, particularly through cross-referencing tax data and quarterly declarations.
Special case: free accommodation and over-indebtedness file
The over-indebtedness commissions of the Banque de France increasingly take into account the situation of free accommodation in assessing a debtor’s repayment capacity. Specifically, the absence of housing costs reduces the “remaining to live” considered, which can accelerate the processing of the file but also lead to more demanding repayment plans. Commissions now require a written certificate and an estimate of the intended duration of the accommodation.
Home insurance and hosted person: who covers what
The host’s home insurance does not automatically cover the personal belongings of the guest. Only the occupant’s civil liability may be included in certain multi-risk contracts, but this coverage remains limited.
The guest has every interest in taking out their own civil liability insurance, or even home insurance covering their personal effects. The cost remains modest for basic coverage. In the event of a claim (water damage, fire), the absence of insurance for the guest may lead to a refusal of compensation for their own losses and complicate the claims of the host’s insurer.
The loan for use contract can usefully specify who bears the cost of insurance and what level of coverage is expected. This clause avoids gray areas in the event of damage to the accommodation or to a neighbor’s property.
Free accommodation remains a flexible arrangement, but each administrative step, from the loan for use contract to the tax declaration to the notification to the CAF, conditions the legal security of both parties. Neglecting one of them turns an act of assistance into a potential source of litigation.