Implications of renting out a property on behalf of the owners in France?

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We are UK residents. We own a property in France which we currently rent via a third party management agency - we have a Bail Commercial, are registered as locations de logements meublés à titre non professionnel (LMNP) under régime simplifié for this and have an accountant who deals with our tax liabilities.

As a separate venture, we have also recently taken on another villa in France to rent for seven weeks this summer on behalf of the owners, who want to rent but don’t want any involvement in the process. Our services include advertising the property, dealing with enquiries, taking booking payments and organising the on-site management via a local couple (who are registered as a micro-enterprise). We will pass on a % of the rental to the villa owner. The owner’s property insurance covers the villa and its contents for holiday rentals, all renters have to provide us with evidence of multi-risk insurance to cover them during their stay. Our income from this and rental of our own villa will be less than 23,000 euros and less than 50% of our total income.

Can we simply continue under the LMNP regime, just declaring the additional income from the second villa? If we wanted to expand and rent other villas for other owners at what point would we need to change our business status? Will we fall foul of needing to be a ‘qualified’ trade? Advice on insurance required for the villa we don’t own i.e. professional cover - assurance responsabilité civile and/or multi-risques professionnelle?

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