Furnished rentals in joint ownership

The majority of furnished rentals take place in apartment blocks, but the regulations on joint ownership can totally prohibit joint owners from renting their furnished properties, provided that this is justified according to the building’s use.
So before investing in furnished property to rent, it is vital that you are properly informed on this matter.

The joint ownership legislation can prohibit furnished rentals

The 1965 law on joint ownership has a simple premise : each joint owner can use and legally profit from the private parts of his share, as long as he does not infringe the rights of the other joint owners or dishonour the stated use of the building.

The law of joint ownership can therefore legitimately restrict the right to rent a furnished property, if the restrictions are justified according to the building’s use : the stated purpose given to the building.

For example, in an « exclusively residential » building that’s made up of large apartments used as homes, a clause banning the rental of furnished service rooms to people externally is applicable. In the same way, clauses banning the rental of rooms in the same apartment to different people have been approved.

Bans on furnished rentals must be justified

On the other hand, in a « mixed » building, where one would find properties of all sizes as well as businesses, the clauses prohibiting furnished rentals are not applicable because they cannot be justified based on the building’s stated use.

The Court of Appeal has also ruled that the provisions of the joint ownership legislation, which made short-term furnished rentals subject to the autorisation of the general assembly for joint owners, were not applicable, since the regislation would otherwise explicitly allow professional services to be practised in a building that can cause similar disturbances to those of a short-term rental (Cass.3ème civ. 8 juin 2011 n°10-15891).

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About me

Maud Velter
Maud Velter
Legal & practical advice for furnished rentals
Associate and Legal Director of Lodgis, furnished rentals and property law specialist