Vacation Properties Under New French Regulations
As the premier short-term rentals news platform informs us, recent changes in legislation will allow Paris and other French municipalities more control over vacation properties management. This is particularly relevant for local companies aiming to list properties on short-term rental platforms like Airbnb.
French Government’s Latest Decree
Issued last Sunday, a new decree mandates that any company wishing to convert properties into short-term rentals must first secure authorization from local authorities. This sweeping regulation affects various businesses, including retail stores and office spaces, emphasizing a rigorous approach to vacation properties management.
Implications for Short-term Rental Market
This legislative change aims to curb the rapid expansion of short-term rentals available in Paris via platforms such as Airbnb. The decree underscores the government’s commitment to preserving the urban landscape by maintaining a healthy balance between employment, housing, and local services.
Requirements for Business Authorization
Scheduled to take effect on July 1, the specifics of what companies must do to obtain this authorization remain under development. Ian Brossat, a city official, indicated that detailed conditions are being drafted and expected to be finalized by year-end, with enforcement projected for early 2022.
Stricter Controls and Compliance
Earlier in February, Airbnb tightened its own policies in France. The platform now requires local government approval for hosts, and those failing to display a registration number face significant penalties, including removal from the website. This move aligns with past legislative efforts in Paris that restrict the number of days a primary residence can be rented out to 120 days annually and mandates tax registration for all property owners.
Long-term Rental Conversion Guidelines
Property owners wishing to offer furnished homes to vacationers for under a year must navigate several bureaucratic hurdles, including a mandatory conversion of registered property use. Furthermore, they are required to purchase and convert an equivalent commercial space into residential housing as part of the compensation strategy.
Impact on Local Businesses
While past regulations offered a simpler process for local businesses to engage in vacation properties management, the latest decree introduces more stringent measures. Now, converting a business space into a vacation rental will be a more arduous and time-consuming process.
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