The recent moves made by the City of Paris to apply laws* restricting the rental of apartments in central Paris may have significant effects for thousands of private owners, in Paris and abroad.
According to the Prefecture de Paris, nearly 38,000 apartments in Paris are being rented illegally, and moves to prosecute some of these owners of these properties have begun**. It is illegal for any owner of a property in Paris not classified as commercial to re-let their property for any period of less than one year. The sole exception is for student rentals, where the term can be no less than nine months. Property owners are obligated to make sure their apartments, and the rental activity, comply with the law, in order to satisfy the legal aspects Paris has set for retail rental "commercial activity." Any apartment advertised for short-term rental can be considered as having been rented, and therefore scrutinized under the law, by the authorities.
The reasons cited for the application of this law is to alleviate the chronic shortage of affordable housing in the city centre. Bonapart Paris and well known blogger about French life and property, Tony Tidswell, (blog http://www.2337.com) held a meeting with François Plottin, Chef du Bureau, at the Mairie de Paris’ Direction du Logement et de l'Habitat in Paris on Wednesday, 19 November and Thursday 26 November 2009. The team in charge of this re-application of the law* confirmed the department holds files of many properties currently being advertised for short term/vacation rentals. These owners are in danger of prosecution, according to Tidswell. "Penalties are severe and a fine of 25,000 euros can be imposed."
The only circumstance where an owner can apply for special consideration is by having the property reclassified as a commercially-zoned property (changement d’usage en locaux à usage professionnel ou mixte). If this is granted then an owner is authorized to rent short-term/vacation rental.
"This law potentially affects about 300 of my client-owners, many of them based in France the UK and the US," Susie Hollands, owner, Bonapart Consulting, a Paris-based real estate consulting firm. "What I'm advising is that they switch to longer term rentals of one year or go through the legal process to change their apartment's legal status to commercial." While the law has not been fully applied, Hollands recommends a pre-emptive approach to what can be a serious situation for owners.
For apartment renters, there is currently no infringement of the law, but, as the apartment is illegally rented, any property insurance could be invalid. A family or individual coming to Paris and renting a private apartment could be seriously at risk and must ensure they have sufficient personal and accident coverage. They must also note that any agreement they have for rentals exempts them from any liability or hazard that may occur at the site of the property (fire, water damage, public liability etc).
CONTACT FOR WORDS AND IMAGES: Susie Hollands - +33 6 17 40 82 04
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