In towns of more than 200,000 inhabitants, a decision from the town council could mean submitting an advance notice to the town hall in order to register all the properties offered to tourists as furnished rentals. This has been put into practice in Paris and Bordeaux.
Who are the landlords affected by this new registration requirement?
France’s Tourism Code, recently altered by the new Digital Republic law, states that a decision from the town council could result in submitting an advance notice concerning registering all short-term rentals for furnished accommodation for clients not taking up residence.
This registration requirement concerns all landlords who rent seasonally, including those who only rent out their primary residence for a few weeks a year.
Following the publication of the decree at the end of April stating that information could be requested for the registration, the municipal authorities in Paris and Bordeaux haven’t wasted any time.
Implementation of registering for furnished accommodation for tourists in Paris
From the 1st October 2017, the city of Paris will put in place a teleservice system to distribute the registration numbers that from the 1st December 2017 should feature on all online advertisements for short-term furnished rentals for clients not taking up residence. This time period is because the City Hall of Paris wanted to leave enough time for landlords to carry out this formality and also to allow online platforms to adapt.
What is a “short-term rental?”
The notion of “short-term” has not yet been legally defined. However, the Tourism Code states that furnished accommodation for tourists is “furnished detached houses, apartments or studios for the exclusive use of the tenant that are available for clients whose stay is temporary and measured in days, weeks or months and who are not taking up residence” and article L 324-1-1 states that furnished accommodation for tourists should be subject to an advance declaration to the city hall or registration.
The following article states seasonal leases must be the subject of a written agreement stating the price requested and be accompanied by a full inventory. From now on this contract should also include the registration number distributed by the town.
It is interesting to note that these articles are part of Section II of the code, entitled “Accommodation other than hotels and camp sites” and particularly in Chapter 4, “Furnished rentals for tourists and bed and breakfasts”. Renting a furnished home to tourists is therefore in principle subject to a seasonal lease. Yet the latter is defined by the Hoguet law, which regulates the real estate industry, as a non-renewable rental for a maximum of 90 consecutive days.
It would be reasonable to think that the registration number only applies to rentals of less than 3 months and not all rentals under a year. This would also correspond to the bill concerning temporary leases (3 to 12 months) that should be debated next autumn. Rentals for this length of time are a response to a need for housing and not to a need for tourist accommodation. This should be an interesting issue to see develop.
For more information on this subject, read about how landlords renting out their furnished properties are required to declare it to the town hall.
To find out more, you can also read the Paris city council’s ruling (in French) and the Bordeaux city council’s ruling (in French).