Paris Apartment Rentals More Information

The recent application of laws to restrict the rental of apartments in central Paris is of major significance to the financial investments of thousands of private owners. It is also a matter of serious concern to anyone renting an apartment from a private owner as they may not have adequate insurance cover.

In the first post on this subject, below, I have outlined some of the issues. This week I made a trip to Paris to interview the heads of the departments dealing with this for the Prefecture of Paris.

I will be reporting further on this as I have been invited to arrange meetings at a high level and bring other media in to help make owners and renters aware of the dangers and risks.

Many people have written to me, a few postings on this page show some doubts and concerns.

This is an email exchange I have replied to today which I hope clarifies some of the points raised, so I am publishing it as it addreesses some of the questions I am receiving.
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Tony

Again, I just keep saying “wow, this is huge.” Do you know if there is any proposed percentage of short-term rental under which this won’t apply (i.e. summer rentals, as you suggest.) In other words, if the apartment is normally owner-occupied but for a short perood is leased out?

I almost based my financial well-being and living in Paris on such a scenario — owning a small flat that I rented out short term and renting a larger one to actually live in. Is it all from the crise de logement? Do you think it’s party-related (i.e. Delanoe as a socialist trying to fight back)?

Many people who go “non declaree”rent only to friends so I guess they hope it will be amicable. Keep me informed and as soon as we can collect a bunch of info I’ll be glad to publish something. So many friends of mine make their livelihood from short-term rentals!!

Another classic example (which Americans never understand, I can’t speak for UK citizens) of the French nuance of permis-tolere-interdit. We only understand black and white,

Let me know what you uncover in your meetings in Paris with la Mairie!

Best,
Polly
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Hello Polly,

I came to Paris yesterday and had a meeting with the chef de bureau of the department dealing with this matter, he introduced me to some of his team and I was able to interview them ‘on the record’. It has just been brought into the remit of the Prefecture, rather than the Mairie as it is now considered a matter of significant importance.

I was told that there is no exemption from this. There are no circumstances where an owner can apply for special consideration except by having the property reclassified as commercial (see below).

Everything I have written about this subject in these notes has been confirmed. It is illegal for any owner of a property in Paris which is not classified as commercial to relet their property for any period of less than one year, the sole exception is to a student where the term can be no less than nine months.

I will be uploading documents onto http://2337.com which an owner can apply for permission to change the use of a lodging. If this is granted, to commercial from residential, then an owner may rent short-term. However to get this permission, a property owner must first change existing commercial property in the same arronddissment from commercial into residential (a 50 sq m apartment needs 100 sq m of commercial property to be reassigned), typically on a two to one ratio. In the vast majority of cases for private individual owners, this is a non-starter.

My understanding is, as it has been for the past year, that 38,000 apartments in Paris (according to the Prefecture) are being rented illegally and this will be stopped by prosecuting the owners of these properties.

I was shown files of some properties which I know from my own experience of property rentals in Paris last year, which are being advertised for vacation short-term rentals. These owners are being considered for imminent prosecution.

Of course, many owners will ignore this and continue to rent to friends or through offshore agencies – but – the activity is illegal and the penalties severe. The prefecture knows that the other tenants in a block of apartments will report any signs of tourism activities to them (it is traditionally built into the ‘French’ system and standard practice) – in French law, any apartment being advertised for short term rental can be considered as having been rented and the proof or ‘innocence’ is the obligation of the owner of teh property. If, for example, there is proof of any telephone, electricity, gas or other service being used while the owner was not in occupation, then an owner will not have a leg to stand on (all these service companies do provide data).

I was shown proof of the huge volume of information already recorded from the Internet for Paris apartments being let short-term.

These are the facts, I will be having further meetings with directors from the prefecture and have been asked to invite the press to publish this information and to advise owners and renters that they will be at risk.

The position for owners is now clear. For renters, there is currently no infringement of the law, but, as the apartment is illegally rented, any property insurance will be invalid. A family or individual coming to Paris and renting a private apartment could be seriously at risk an must ensure that they have sufficient personal and accident cover and that any agreement they have for rental exempts them from any liability or hazard that may occur in the property (fire, water damage, public liability etc).

I agree, this is of huge importance.