Paris Mayor, Anne Hidalgo, waged war on rental platforms such as Airbnb last year, suggesting that they’re turning the city of romance into an ‘open-air museum’, reserved purely for tourists. The key gripe was the amount of hosts advertising on the short-term rental platforms that weren’t registered with the city, and therefore breaking the law.
Every property offering short-term lets on a complete house or apartment must register with Paris City Hall. Only then are they able to display a unique registration number on any of their site listings to show they’re operating within the legal structure.
Thousands of Paris homes are still unregistered despite City regulations
It appears that there are over a thousand homes on Airbnb alone that aren’t registered with the City. The registration allows the authorities to monitor property usage, and when owners and investors break the short-term regulations. The regulations and registration allow the authorities to see which hosts are merely making a few extra Euros each year by letting a property that’s temporarily not in use or unoccupied, and those who are operating as a business. Airbnb replied saying that they have implemented systems to respect the rules of the City. The hotels and industry accommodation suppliers are feeling the pinch of what the short-term letting sites have brought to the table. There are still a lot of ruffled feathers in this sensitive area of the industry, and it’s not an easy market to settle back down.
Paris’s short-term rental registration
As one of the most visited and popular tourist destinations in the world, you can understand the City’s efforts to achieve a fair market place. So far, they’ve endeavoured to provide healthy and responsible options for residents, renters, and tourism professionals alike.
It’s also Airbnb’s biggest market city. It leapt from a few thousand listings to over 40,000. Then in 2019, the figures jumped to 60,000 in a single year. You can understand why Paris authorities have chosen to make a beeline straight to this platform and the others just like them. To keep track of all operations, the City requests that all rental facilities, whatever their operational size, are transparent to the authorities.
It’s a simple process, designed to keep things nice and easy for those who are playing by the rules.
1. Visit the Paris City Hall website to register your property
2. Create an account (or sign in to an existing account), and complete the online declaration
3. You will be sent an email receipt that includes your 13-digit registration number
4. Enter your 13-digit number in the relevant section of your account on any of the short-term letting sites where your property is advertised for lettings
It really couldn’t be much simpler.
What are the short-term rental regulations for Paris?
In October 2017, the authorities in Paris put this registration system in place on short-term rentals of entire houses and apartments. It was intended to keep a track on tourism accommodation that was outside of the typical hotel and bed and breakfast business models. For those simply renting out a single room of their home, the registration wasn’t necessary. The underlying purpose was to keep a check on what they considered business operations disguising themselves as private property owners. The authorities were happy to allow residents to make a little extra income from their existing property, but not from letting an apartment each and every month, year-after-year. The registration is simple and requires no proof or documentation. It is, merely, a declaration of intent that offers operational transparency. Owners will have to register each property individually. So those with more than one property will need to make the appropriate number of registrations.
There are a selection of categories that your Paris property can fall into.
· Primary residence A property that owners live in for at least 8 months each year.
· Secondary residence A property that the owner lives in for less than 4 months of each year. For example, a holiday home or a pied-à-terre
· Non-residential space A property dedicated to providing accommodation to tourists. For example, hotels, bed and breakfasts and serviced apartments
The 120-night yearly limit for primary residences
There is a limit of 120 nights per year that hosts are permitted to let their primary residence under short-term rental agreements.
For hosts planning to let a property for more nights each year than this, the authorities consider it as business use and will require a change of use or destination.
Change of use and compensation
For owners opting for a change of use, from residential to commercial, then a compensation rule has now come into effect. There are a range of other rules and regulations to follow regarding short-let rentals. Where the use of the property is changed, an area of commercial space of the same surface area must be purchased and converted into a residential property. For more information and legislation about compensation properties, you should contact the Housing Department at Paris City Hall.
Change of destination
A change of destination is the act of converting rental or non-rental premises (e.g., shops, offices, etc.) to tourist accommodation. Again, full information is available from Paris City Hall. Contact the Housing Department for further details.
Exceptions to the Paris 120-night limit
There are exceptions to every rule, and the 120-night limit in Paris is no exception.
Many professional hosts, operating clearly as a commercial manager of multiple apartments, will sidestep the limit on all of their properties. This is an area where using a professional company to let your property, such as UpperKey, offers a way of avoiding all the legal confusion and cutting out the paperwork—more so than ever when letting your properties in Paris.
Absence due to health or business—or matters beyond your control
You could be entitled to rent out your primary residence if you’ve been away from the accommodation for over 4 months of the year, due to health or professional reasons, or a force majeure.
Letting for periods of over 90 days
If you only rent out your property for terms of over 90 days, then the limit may be lifted.
The “bail mobilité” scheme
This flexible agreement is provided for short-term periods of 1 to 10 months, for professionals, students, apprentices and more, looking for somewhere to stay during their placement.
Suggested areas of tenancy applicable for the scheme include those in:
· Vocation training
· Higher education
· Volunteers in civic services
· Job transfers
· Temporary work assignments
The programme provides a non-renewable lease and is rent capped. Renters can leave the property at any point of their stay as long as they give one full month’s notice.
Why not leave all the hard work to the professionals?
Reaping the profits of a Paris property isn’t as cut and dry as most investor owners would like it to be. If you aren’t local, then short-term lets are problematic. There’s the upkeep of the property, regular servicing, meeting and greeting guests, handovers, laundry and more to manage. There’s also all of the work you’ll need to continually monitor and manage to maintain a steady flow of guests and visitors. That means organising the marketing, understanding the legal aspects and making sure you’ve got all of your taxes covered.
Wouldn't it be so much simpler to hand over all that responsibility to somebody else? Someone with incredibly high standards, a great reputation, and who offer the best guaranteed-rent rates you’re likely to find?
Let UpperKey take care of every last, little detail
We’ll manage the legislation. We’ll keep a steady flow of guests and tenants. We’ll also keep your apartment looking stunning, and all without you having to lift a finger. It’s the simplest way you’ll find to make a solid and steady income from your Paris property investment.