A recent Paris legal victory over Airbnb has implications for those renting out their apartments short term.
If you list your apartment online or are planning to, strict guidelines are in place.
We examine the case to see what this means for owners planning to market their property to tourists in Paris.
An ongoing case against short-term rentals
This case is nothing new, and has been ongoing for several years.
Essentially, it concerns the limit on short-term rentals in Paris. You are only permitted to rent your apartment for a maximum of 120 days each year if the property is your primary residence.
This is to manage the availability of housing for Parisians wishing to live and work here, while also supporting the capital’s hotel industry.
We covered the topic in more detail in this blog a few months ago.
While many owners follow the legislation, this case now gives the City authority to resume legal action against those flouting the rules.
Estimated to be some 420 landlords, they may now face fines averaging €50,000 each.
The victory is likely to encourage other European governments to follow suit, clamping down on excessive online short-term rentals in their cities.
What does the Paris legal victory over Airbnb mean?
The European Court of Justice, Europe’s top court, ruled in favor of Paris last September.
The latest result assessed the specifics of the regulations and is from the Court of Cassation, France’s highest court.
The landlords in question are contravening the Code de la construction et de l’habitation (Construction and Housing Code) by using online platforms to rent out their properties for more than 120 days a year. This is illegal without correct authorization from the Town Hall.
It is not just listings on Airbnb, the most famous, but other rental platforms such as HomeAway, Leboncoin, Wimdu, Tripadvisor, and HouseTrip.
From now on, owners must carefully follow the rules laid down by the city, or face a substantial fine.
The legal proceedings have been on pause since 2019. But following the new Paris legal victory over Airbnb, the City can move forward with demanding fines from the landlords in question.
In total, these fines are around €21 million.
An exception to the rules
There is an exception to these rules, however, they are hugely restrictive.
Those who own a furnished second home in Paris and who wish to rent it out must apply to change the ‘registered use of the space.’
Next, they must purchase a commercial property of an equivalent or bigger size, and convert it into a livable dwelling as compensation.
This requirement is overly restrictive, on purpose. It is designed to discourage multi-property owners from renting their furnished properties to tourists.
It is unlikely that many owners will wish to proceed with such an onerous task.
Assistance with renting out your property
At 56Paris, we appreciate this is a complicated and ever-changing issue.
If you are an owner planning to rent out your apartment, our experts are on hand to help you.
We can guide you on how best to rent out your property legally while realizing the most lucrative option. Please don’t hesitate to contact the team to talk about your options.