Recently there have been developments affecting Airbnb rentals in France.
A new decree for businesses, along with a successful ruling from the Paris authorities against Airbnb, means following the legislation is more important than ever.
We take a look at the implications for those renting out their Paris apartments, specifically when using online rental sites.
The growing trend for short-term online rentals
The rise of Airbnb and other online rental sites has changed the property industry around the world. Along with Airbnb, which is the biggest, others include HomeAway, Vrbo, HouseTrip, and Wimdu.
But no other city around the world has resisted the movement more than Paris.
There are several reasons. First, Paris wants to ensure the already limited supply of housing is available to those wishing to live and work in the capital. Second, the Parisian hotel industry lobbies to welcome guests without competition from apartment rentals.
In addition, Parisian residents object to neighboring apartments in their buildings being rented out like hotel rooms, with the additional noise and building traffic it can generate.
We have covered this topic many times in our blog, earlier this year and also last summer, as it is of particular interest to our clients.
But the latest developments strengthen what we already know: short-term rentals are only allowed for a limited time, and only when following strict rules.
Restrictions on Airbnb rentals in France
To slow or even stop the increasing number of online rental listings, the Loi Numérique (Digital Reform Bill) came into law in 2016.
This bill requires the registration of the property with the local Mairie (Town Hall) to obtain a registration number. This number must appear on the website listing.
Failure to comply with the rules can mean a fine of up to €25,000.
On top of all this, landlords are only permitted to rent out their apartments for a maximum of 120 days each year, if the property is their primary residence. Otherwise, a fine will also be payable. Secondary residences may not be rented out short term, unless the property has commercial zoning.
The latest crackdown on online rentals
In June, the government issued a new decree. This states that businesses wishing to transform their property into a rental must obtain prior authorization from the government.
This is to stop a growing trend of adapting and renting out ground floor business premises to tourists, as short-term accommodation.
The new decree applies to all businesses, including stores and offices. From July 1, it is technically already in effect.
However, the exact conditions that businesses must meet are still not clear, including whether it bans only ground-floor premises, or all.
Reports suggest the new decree will be fully effective by the start of 2022, by which time we will know more.
It’s just another tightening of the restrictions around online rentals in Paris and other French cities.
Paris authorities win their case
But that’s not all.
In a separate case, the French courts have fined Airbnb €12.5 million for illegal listings in the French capital. That is equivalent to $9.47 million.
This is due to a number of listings that didn’t show the required registration number. Although Airbnb argued this is the responsibility of the owner, the court ruled in favor of the government.
Over a thousand property listings are therefore deemed illegal, and the fine is for €12,000 per property.
Airbnb must now pay the fine to the Paris government, but released a statement about the ruling. They say, “Airbnb will help hosts and guests follow the rules, such as by enforcing registration for hosts in Paris and other major cities across the country.”
The ruling is the latest blow to Airbnb rentals in France, as it becomes ever more restrictive to rent using this method.
The experts at 56Paris are here to help
For a full guide to renting out your Paris apartment, and how to stay compliant with current French legislation, please read our easy guide here.
Of course, we understand that the rules surrounding rentals in Paris are ever-changing, and can be a minefield. So we are here to help.
Please do get in touch with our experienced team, who can assist you. We freely give advice with no obligation.
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