Apartment living is the Paris way of life – many visitors to France have sampled this Parisian experience by renting a private furnished apartment for a short period, usually a week or two, sometimes several months.
The rental of private apartments in Paris has grown into a sizable industry, there are now an estimated 20,000 short term rental apartments in Paris offered on the Internet. This number may be much larger so I am asking for more information.
I no longer organise rentals in Paris, but I have reopened my files as this is something which is now personally involving us. We live in the South of France, but my daughter Miranda is now independent and making her career in Paris, however, finding a place to stay that she can afford is a nightmare.
Interestingly, as in the city of London, it is actually illegal for the owner of a private apartment in Paris to offer this for rent as a vacation property, or for any form of short-term furnished letting. There are a few exceptions, registered commercial properties for example, or for rentals to students, but these represent a small number of those properties advertised on the hundreds of websites offering Paris apartments. The licensing and registration of rental accommodation is beginning in other major cities, Los Angeles has also introduced new rules very recently.
The laws are clear, but, like many things in France, these laws have not been applied – until now.
Last year I met with some people from the ‘Direction of Logement et de l’Habitat’ which is bureau in the Mairie of Paris. They were investigating some of the higher profile rental websites. I was interested as I was thinking of restarting my vacation rental websites. I did not continue with this as I decided to invest my energy into our home at VillaRoquette, but because of the frustration and misery my daughter is experiencing, I am looking into the current position and this very serious issue has raised it’s head.
Prices charged for vacation rentals in Paris are around of four times the rental charged for a one year tenancy (the legal lease for a furnished rental), often many times more than this. Many Parisians say the acute shortage of rental accommodation in the city and inflated apartment prices in the beaux quartiers over the last few years was by this activity.
What I am finding is that The Mairie of Paris has been very active in contacting owners of properties rented out as short term lettings and instructing them that is they do not cease, they will face a fine of 25,000 euro, plus up to 1000 euro a day. (Official Statement)
Personally I welcome this, hopefully it will bring thousands of properties back into the rental market. It should also eliminate the poor quality apartments rented out through some dubious rental agencies, many of which work out of France and cheat millions of euro from their clients and avoid taxes (as well as licenses and insurance). This creates a danger for owners who may be tempted not to declare their income, it is the owners who will suffer huge fines and possibly lose their property.
This action by the City of Paris may seem to reduce the number of private apartments for vacation rentals for people to share ‘The Parisian Experience’ but any vacuum is soon filled and I believe some really good alternatives will be offered, I can envisage several very interesting opportunities to offer an authentic taste of Paris living.
Meanwhile I will be looking deeply into this subject and will be posting regularly – if you have any interest or information on this, as an owner, renter, investor or just like Paris, please respond to this post.
18 Comments on “Paris Apartments”
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Yeah but for families, esp with young children it’s way better than a hotel. We rented an apartment in Barcelona 2 weeks ago and it worked brilliantly.
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Hello Steve,
Yes I agree and the rental of apartment in Paris is not being banned, just the rental where it is clearly in breach of the law. This is often where a ‘middle man’ takes a lease from an owner for up to 9 years and then re-lets a pastiche of Parisian living at an inflated price. These properties are out-of-control and due to offshore companies evade the security and financial laws in France. Tenants are now at risk by no having insurance cover and owners are now at risk as they are legally liable.
There are some exceptions and any apartment accepted as a ‘commercial’ property can be rented to visitors on weekly rentals, so there will always be this unique opportunity in Paris
Tony
Posted on November 13, 2009 at 12:02 am.
I suppose as an American, it feels a bit like “big brother” infringing on your personal property rights. However, reading your article makes me realize that it is the scoundrel that ruins it for the apartment owner and or long term lease holder that finds it convenient and attractive to sublet for short period of time to help with the costs and or gives the owner/lease holder an opportunity to get me as a one month renter giving them the pleasure and resources to go to your home in the South of France for a month.
We have used vrbo for years to have had many pleasant holidays where we can do our own local grocery shopping and cooking. We have also been part of House Exchange groups and a Travel Club where you open your home up for hospitality, receiving a nominal payment of $20 per night with a maximum four night stay. It has all been so very wonderful without a hiccup. Another however is I never use a management company, and have always dealt with the actual property owners, similar to yourself. I wonder if there would be away to reduce the riff raff and still allow the good apples to continue.
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Hello Patricia
Thank you for writing, VRBO are an excellent company, they advertise directly for owners and are not agents.
This law currently only applies to central Paris, it can only be applied to any city in France of over 100,000 population. It concerns all owners, not agencies. The owner of an apartment, with few exceptions, cannot permit any rental in their property for short periods (such as a vacation rental) and it is the owner who will be fined and risks imprisonment, not a letting agent.
It seems that the city officials are at first sending letters to owners warning them of this, this has been happening for just over a year. Many owners are just waiting to see what will happen as legislation is one thing, but implementing it is quite another thing. However, I am seeing a lot of recent activity and I am writing these notes to try to help both visitors to France and property owners.
I would also like to see more reasonably priced accommodation for people who live and work in Paris, including my daughter, so, yes, I do have a personal interest, but my work and livelihood depend on tourism so I try to give a fair and balanced view.
Exchange groups are a great idea, I have looked into this several times and coincidentally I am doing some current research for a friend – it is not significant in France, do you have any experiences of French home exchanges?
Several of us are looking at ways to offer good value, legal and safe apartment accommodation in Paris as it is such a good way to experience the real French lifestyle so getting rid of the ‘riff raff’ will be a good thing.
Best wishes and thank you for writing
Tony
Posted on November 13, 2009 at 12:12 am.
I am not sure whether I am leaving this comment in the correct place, however, having enjoyed short term rentals in Paris during the past 12 years, I think it would be a retrograde step to “ban” such rentals. For my husband and I, being able to live in someone’s home in Paris has been a highlight, without exception the properties have always exceeded our expectations.
We have not stayed Paris for 6 years and each time I longingly look through the rental sites I notice that the rents are now quite high, but in comparison with hotels, even 2 star hotels, the rents are quite reasonable.
We live in Sydney, Australia, and there is talk of similar restrictions being imposed, but the reason is not so much because short term rentals (which are still relatively scare) reduce the available long term rentals but because the system is abused by some owners who allow overcrowding in small apartments creating havoc for the owners trying to live peaceably in their own apartments.
Surely the solution is to address the actual problem, whether it be noise, non payment of taxes, need for registered agencies or whatever, rather than close down a facility loved by so many travellers to a beautiful city.
It would also be to everyone’s benefit if the sham/scam operators were disclosed.
Hopefully a solution will be found that addresses the problems but keeps the unique “paris experience” of living in an apartment (and cooking!!) available.
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Hello Penelope
It is only the rental of apartments designated as non-commercial which are illegal, there are also a few other exemptions, so renting a classic Paris apartment will not be impossible in future, but it will be more secure (insurances and security for example) and must be correctly declared.
I agree, one of the problems I did not mention is the nuisance which can be caused by some short term renters. In my experience this has not been a problem, most visitors renting a good (and expensive) apartment in central Paris are good, respectable and honest folk and do not cause any annoyance to the other residents in a property.
My understanding is that the shortage of accommodation for Parisians caused by short term rentals in Paris is a very serious matter. The mayor is trying to redress this by enforcing a long established law and giving powers and penalties to ensure its effectiveness.
Private apartment rentals will not disappear – this only applies to residential properties and an apartment correctly designated as a commercial property can be rented for vacation lets.
I agree, it is a wonderful experience to live in a real Paris home – the fact is that most of these apartments are not homes, they are leased by agencies from the owners and then ‘dressed’ in a mockery of French style up and re-let at a hugely inflated price. As the law now prohibits this, they cannot be insured and I am certain that the insurance company, either of the agency or the owners, will not pay out should there be a loss or accident in these properties.
There are exceptions allowed in these laws, I will be publishing these on these pages as I learn and check them from the mails I am receiving.
I am certain that from this there will evolve a service to offer visitors the pleasure of living as a Parisian at a fair price and with confidence and security
Thank you for writing
Tony
Posted on November 13, 2009 at 1:36 am.
There is another reason why people do not rent long term in Paris & that is the legal system is totally in favor of the rentee. If a tenant does not pay their rent you cannot evict them!! It must go to a tribunal which not only is very expensive as you need a huissier to send it to a tribunal, who may in turn then require a lawyer. This process takes at least 6 months & if the decision comes down between October to the end of March, you cannot evict because it is winter & it is illegal to evict in winter. So even if it is a given that the tenant will be evicted, the process usually takes a year so that you are out another year’s rental income. We experienced this first hand & will NEVER rent out long term again. There are a huge number of scummy tenants aware of this & know that they can stay rent free for more than a year. They go into the rental contract with this very thing in mind. Beware. Until the laws in France attend to this rediculous situation, people like us will take our place off the market rather than ever rent long term. Any eviction should occur as soon as rent is not paid as the rental contract is broken. The laws need to change in order for there to be more long term rental properties.
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I have also experienced this first hand and had a tenant in our home who refused to pay and who would not leave for 8 months, unless we paid them a large sum of money. We refused and eventually they left, but I still believe that a tenant should have strong rights.
If we are fortunate enough to be able to own more property than we personally need, then we also have responsibilities to others. It is our choice and we should ensure that if we do allow others to occupy our assets, then we must take what care we can to ensure the tenant is a good and fair person. As landlords we can use agencies, some who will give guarantees.
But this is not the point of this discussion, like it or not, the law is clear that in the center of Paris the rentals of private apartments, with some specific exceptions, for a period of less than a year are illegal. It is this fact I am addressing in the hope that some owners who are as yet unaware of the law do not get into trouble – that visitors to Paris are safe, insured and secure and that the crooks who have exploited this activity for a long time are stopped.
Posted on November 13, 2009 at 2:48 am.
Will this spread throughout France? To small cities and towns?
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Hi Barney,
No, it is specifically for a city with a population of more than 100,000 and then only if the city applies the option of enforcing the law.
In France is is only the center of Paris and only private landlords – there are some exceptions allowed, in my trip to paris next week i hope to be interviewing someof the city officials about this.
Posted on November 13, 2009 at 2:53 am.
comment by email – From Philip Nash
City of Santa Fe, New Mexico has similar prohibition against short term lets, minimum is 30 days. I suspect such legislation comes from lobbying by the hotel industry rather than some altruistic motive.
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I have found out about other rental restrictions around the world, I am sure other industries, hotels for example, are keen to protect their own services – this is not unreasonable as a hotel has to pay for compliance with strict safety and security measures, all income is inspected and standards have to be maintained.
Other reasons I understand, for example in parts of Florida, are to stop short term rentals which are used for covert cover for illegal operations, drugs etc.
The point is that this type of uncontrolled rental is now illegal in Paris – I am sure the city are not making friends with many tax paying owners and they will be larger lobby than the hotels.
Posted on November 13, 2009 at 1:35 pm.
I am the owner of Bonapart Consulting and since 2003 I have been assisting people who wish to live in Paris. That’s how I developed my service for buyers of property (the people I helped to rent property decided they wanted my help to buy). I tried to resist managing properties after purchase as it’s THE job nobody wants to do ( see our competitors, we are one of the only companies that does everything, buy, renovate, manage – the un-sexy parts!) but the clients begged me to look after their affairs and I couldn’t find a company to outsource this to who would look after them…..hence the fact the company grew and now our small team look after a very smart little portfolio that we have helped purchase, decorate and look after lovingly. We really enjoy it and the contact with the visitors to Paris is great fun, highly rewarding and of course, full of surprises.
The aim of the service has always been to work with integrity and make sure that the clients who purchase are totally looked after as many of them just have no idea what they are getting into when they purchase property here in France, from a bureaucratic level or just in terms of rental law, taxes and insurance.
That is why I have been digging and digging to find out about these moves by the Prefecture du Paris. I know what he is getting at as the difficulties to find lodging here has grown to ridiculous proportions (see my post on Jeudi Noir a few year’s ago). Our clients are not Parisian parasites, they really love this place and my company prides itself in helping them integrate socially and culturally with the city, our weekly arts and culture magazine http://www.ivyparisnews.com has been a labor of love for years .
We’ve had clients from all over the planet and they have had tiny to larger budgets, but all had one thing in common, they were nuts about this city! They needed to use a service that kept them abreast of the millions of small details that could put their investment in Paris at risk, have some time to spend there and then carefully manage their property during the time they are in their own homes (working hard and dreaming of the short trips to Paris that keep them going throughout the year!). Our clients are often able to afford their Parisian pad by mixing some personal usage with a rental activity that helped cover their costs – the main activity is housing those people on medium term stays in the city and this type of rental activity would help owners cover costs and perhaps pay a trip over on top of this. The main benefit is the use of a second home in this amazing city.
This week I started to inform existing clients, staff and those prospective buyers who wish to work with us of these new moves by the Prefecture de Paris. They have a right to know about this and the whole affair is being completely hushed up. Many agencies have their heads in the sand but that’s no reason to let other people, their clients make a foolhardy investment at a time when serious laws are coming into play which could change the rental and buy to let investment landscape forever.
I’m not crazy about these moves themselves as they strike at the very heart of our core business but I refuse to keep silent about this.
This is a very hasty response but I will be back on this thread soon.
Susie Hollands
Posted on November 13, 2009 at 3:26 pm.
By email –
Tony,
This is HUGE news. There are so many individuals I know who basically make their living (or afford to keep apartments) by renting them out. Whew– selfishly, I’m glad I’m not one of them. But I have always enjoyed renting a flat when in Paris.
Of course I imagine a lot of them will go non-advertised/ non-declaree, but even so. Wow. I knew it was true for London.
Or will the government try to have all apartments part of the Gites de France network?
Anyway, I’ll follow this with interest. Thanks for the news.
Best,
Polly
la vie à Paris
Polly-Vous Francais?
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Hi Polly,
I have been sitting on this for over a year waiting to be sure it was not just an empty threat, but it seems clear now that the ‘Direction du Logement et de l’Habitat’ of the Mairie de Paris are now stepping up their campaign. I have copies of letters sent to owners stating the penalties they face for non-compliance.
My aim is to establish clearly the facts, set them down clearly, open up discussions and through this to help and advise owners of apartments in Paris their options and to seek alternatives.
The other point that concerns me is that if an owner then goes ‘non-declared’ then they take a big risk – it is not jut a matter of tax evasion (a national sport in France and many countries) – it is in fact a criminal act and the tenants are at risk with complicity and will have no protection or insurance cover.
I am glad to see that the Mairie of Paris has acted slowly and has given owners more than a year so far. But when this is advertised more widely, any person renting an apartment where the owner is not allowed to rent for short period (most in fact), will realise that they are breaking the law – ignorance is not a defense in French law.
All renters should now insist that the owner or agent gives proof of their status to be allowed to rent an apartment as a vacation or short term accommodation.
I may try to lobby the departments of the Mairie on behalf of individual private owners for some official ‘leeway’ for rentals, for example in the summer season when many Parisians leave for the south – this seems to be what is being (unofficially) done anyway – the targets that I am aware of are the offshore, commercial agencies who buy up or lease apartments, refurbish them like a junk shop on a film set, and then re-let them at astronomical prices which distorts the whole conception of rental values in the city center.
This really does need some publicity and you could help with you blog – I am in Paris next week and one of my objectives is to talk with the Marie de Paris about the problems of insurance for owners letting, many of whom are still unaware that their insurance will be invalid as they are renting illegally – no insurance company is going to pay out if a vacation tenant is injured when the letting is illegal. The owner would be liable for damages, which could never be paid.
I’m prepared to bet that 95 percent of direct rentals in the center of Paris, to US citizens who deal directly with the owners, are now not insured for the tenant (or the owner now) and I know that not many people know this.
As with the big travel companies, the insurance covers should be clearly stated on the rental agreement.
There is also the problem that private travel insurances relating to an incident in the rental property (or perhaps anywhere) may now be invalidated as the rental is illegal and the tenant is, unknowingly, complicit.
I am not affected in my own place in the South, it is only the 20 arrondissments of Paris this concerns, at present. I am not now involved in any rentals in Paris, but I do have many friends and clients who do travel regularly to Paris or own property in Paris.
Tony
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Tony
Wow. I’m still blown away by this. Do you think most American (or other foreign) apartment owners are aware of this? I think not! Or they’re perhaps in denial and think it’s one of those French laws that everyone ignores sans probleme.
Keep me informed. It’s sure to explode soon.
Best
Polly
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Polly
It would seem from the number of owners, French, American, British and others, I have spoken to recently that most are unaware of these laws. The laws are not new, but the decision to enforce them is an initiative only started last year and it seems that only in the last few weeks has firm action been started.
The difference is now that this is not just an initiative of the Mayor of Paris, but is accepted as a regional policy and is part of a government initiative through the department.
There is an acute housing crisis in central Paris – the freeing up of 20,000 to 30,000 apartments for a standard one year rental that this action could generate is needed – actually this number is a small percentage (under 4 percent) of all accommodation in central Paris and so the vacation usage can easily be absorbed by hotel and legally registered accommodation.
The problem has been accentuated by the rapid growth in the number of private apartments now advertised for vacation usage – it is an Internet phenomenon – ten years ago there were a handful of agencies advertising and a sprinkling of private owners which was not causing a problem or seriously affecting the local housing – now there are over 38,000 apartments in this arena – many bought as ‘investments’ to cash in on the racked-up rentals that can be gained from tourists. This has created an inflated value for rental values further exasperating the local housing problems.
I knew about this over a year ago, but, like many people who received letters from the Mairie, I considered that is could be a ‘puff of wind’ from politicians looking for votes an decided to ‘wait and see’, yet to keep a close eye on activities. Warning bells rang a couple of weeks ago when I heard of the size of the penalties and that the Mayor ’s office was no longer the motivator, but the prefecture.
I have over 10,000 newsletter readers, many in the United States, many of whom are interested in living in France and buying property here. I believe it is necessary to bring this to their attention. No only because investments may be at some slight risk, but my main concern is for the safety of renters, the question of insurance being invalid as the occupancy of the apartment is illegal and insurance companies will find any excuse not to pay if there is damage, an accident, or worse.
I am also trying to find ways to assist owners, I have some ideas and I am working on these to make sure that the insurances and legality is watertight, I do hope to have some structures and advice I will be able to give very soon. But first I believe that people should be aware of the present situation and avoid severe penalties or insurance difficulties.
tt
Posted on November 13, 2009 at 11:08 pm.
Posted on FaceBook by Kathy
We’ve always had very good experiences with Paris apartment rentals, Tony. I think because we deal directly with the owners . . . just as we did with you (in Nizas).
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Hi Kathy,
I agree, dealing with a person and renting in their home is a great experience – Paris is definitely ‘gunning’ for the unscrupulous agencies, but the only law they can apply is a ‘catch all’ for the owner of the property.
One thing I am trying to do is to ‘lobby’ for the individual owner ) most of whom know nothing about this at the moment and who could be at risk by having their insurances invalidated, so this makes it important for renters to know that they may not be insured when renting an apartment in the center of Paris – so it is essential now for any renter to get proof of valid insurance for a short term tenant in any property in Paris.
Tony
Posted on November 14, 2009 at 10:47 am.
Tony,
This topic concerns me, and yes, it is huge! I live in the US, and for years have stayed in short-term rentals in Paris. Some have been rented through agencies and some directly through the owner. They have all been wonderful experiences. So wonderful that I have decided to purchase my own apartment in Paris and want to rent it out (short term) when I’m not there. I DO feel very fortunate to have the means to do this, although barely. I have no problem paying whatever taxes I will owe the French government for the privilege of doing this.
I am confused about what you have written regarding registering apartments of this type as commercial–are you saying it is difficult to receive this classification? If I buy an apartment now, what are the chances I can get the proper approvals I will need to rent it out short term legally? Do you know of further resources I can consult about this?
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Alice,
I am putting all the links and resources I can find on this website – everything i have so far is in French and mostly from the French government website.
The department in Paris does not have a specific website for this, I went directly to their offices this week to meet the head of the department and I plan to return next week and interview the directors of the prefeture nd, hopefully, people representing the senate of government dealing with this.
I do have copies of the application for change of use, but, this will only be granted if you already own property in the same area of Paris which are already designated as commercial and are double the surface area of your residential unit, and if this is then changed to residential use, and even then it is completely at the discretion of the Prefecture. In other words an apartment you buy for 500,000 euro means you already have to own property in the same arrondissment worth 500,000 euro, and spend a great deal converting that to residential – it is a real ‘catch 22′.
I will be putting all leaflets and application forms on this site as soon as I stop travelling and meeting officials, hopefully by next Monday.
I am only reporting the facts here – in my opinion it wil be very difficult for the authorities to enforce this law to the 30,000 properties they have identified. I know they are in the process of taking strong action against some larger owners renting through very visible agencies. But to take the hundreds of thousands of small legal actions against the tens of thousands of individual private owners is unlikely, at present – this is only my opinion based on my personal experience with French authorities and not advice.
Please keep in touch with this website and with me if you wish. My interest is to look for opportunities and solutions which can come from this problem.
Tony
Posted on November 20, 2009 at 1:29 am.
Hello,
This is very interesting indeed. Can someone please direct me to a government or Paris city administration website with further information about this new law?
Thank you
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Hello Asta,
I am in the process of adding more links and putting on down-loadable files relating to all the information and requests for change of use. I answered some points that may be useful to you in the comment above this one.
I am not yet aware of any other information on this subject, but I am researching and have further meetings with the departmental heads and will post all I can find out in this blog
Tony
Posted on November 20, 2009 at 6:20 am.
Despite all the worried emails I am receiving from those involved in Banking, Renting property, Servicing property and individual owners, it does not seem that after we met the Chef du bureau that there is really much more to say on the subject.
the rules are clear and the mairie de Paris and the Prefecture de Paris feel very strongly that this activity of short term seasonal rental has artificially forced up the price of lodging for ordinary Parisians, they (and I) have no wish for Paris to be turned (further) into a Ville Museé…they cited Venice in Italy as an example.
They mean to crackdown on the rental activity simply by making some high profile prosecutions.
Truly, this will be hard, they have a job on their hands to gather evidence and push this through but they have a larger team than originbally thought and two year’s worth of dossiers.
They are efficiently carrying out orders and like it or not, those of us in Paris with any involvement with furnished rental have to act to scrutinise our activities and start to comply with this newly applied legislation.
Posted on November 30, 2009 at 1:56 am.
Hello and thank you for making the effort to highlight this issue.
You mention there are some ‘exceptions’ that would allow an apartment to be rented out short-term. Can you be more specific at all?
I was thinking of purchasing a small apartment in Paris as my personal residence. However, I would only need the accomodation Monday – Thursday.
Would I be able to rent out the property for the days I would not need it or would I be breaking this newly introduced law?
I have been renting long-term in Paris for the past 18months and have just had enough of paying so much rental each month and receiving a non-existant service from the landlord/agents when problems occur in the ancient apartment.
Thank you.
Posted on December 10, 2009 at 4:10 pm.
Hello Mario,
The only exceptions are for an apartment which is scheduled as a commercial property, most residential apartments will not have this and it is very difficult, and expensive to change from residential to commercial.
The enforcement of the law is not aimed at the sort of occupation you describe, but, strictly speaking renting at weekends for vacation rentals would be illegal.
One aspect of rentals which the authorities are actually encouraging is a bed and breakfast usage, this would require you to provide a breakfast over the weekend period, perhaps this is possible if someone can assist with a croissant and coffee in the mornings.
I would suggest you advertise this directly yourself as a bed and breakfast service, do not use any agencies as these are highly visible and targeted by the City authorities.
Do let me know if you are looking to buy an apartment, people are contacting me privately offering sales now.
Best Wishes
Tony
Posted on December 10, 2009 at 4:54 pm.
Hi Tony,
Thanks for your reply and advice.
I am, in fact actively looking for an apartment and currently researching the areas i think would give the right balance between having something as my own place and been able to offer it as a bed & breakfast.
Not wanting to mess you around, my timescale for purchase is around March/April next year. Please do let me know closer to the time if you have requests a month or so before that.
I believe you would have my direct mail address.
Regards,
Posted on December 10, 2009 at 5:28 pm.
How is the “center of Paris”, where the law is being enforced, defined? Are any arrondissemonts exempt?
Posted on December 27, 2009 at 10:55 pm.
Georges,
The leaflet I was given by the Mairie last year (a copy is shown from a link on this site) states they are concerned with the center of Paris – basically arrondissements 1 to 7 – but technically the law relates to any city with over 100,000 population so this would apply to all paris.
My understanding is that the actions against owners and landlords will be tested with legal action against cases in the areas affected greatest by tourism, perhaps the 6th, 3rd and 4th, but at present it is a matter of waiting to see what happens over the next few weeks.
Posted on December 27, 2009 at 11:52 pm.
M. Montblanc: Merci! We are especially interested in how the law will apply to our 50 m-sq apartment in the 18th. (And I now can spell”moose” in French.) A bientot…
Posted on December 29, 2009 at 3:19 am.