It?s true that these rental arrangements exist and, often, they are presented, rented, and paid for through foreign companies over the Internet.? In any case, this market will always escape traditional rentals because these ?pied-?-terre? properties are not for the purpose of being rented long-term, but instead to be used primarily by the owners when they visit Paris, then rented out to tourists during any open periods in order to cover the charges and property taxes, and also to avoid a possible squat.
The problem then rests in the fact that the Paris City Hall has not made the distinction between furnished rentals for tourists (on a nightly and/or weekly basis) and furnished rentals intended for individuals who come to France to work. The multinational organizations that are the principal renters of furnished apartments have since changed their behavior a few years ago.? De Circourt Associates can attest that before the economic crisis of 1993 (reinforced by that of 2011), these organizations would systematically sign one-year renewable lease agreements.? But now, in these times of such uncertainty, everyone is reducing the risks they take and most often these organizations will rent for shorter periods (3-6 months) in order to avoid doing long-term business with expat employees in the future, even if it means renewing a lease agreement multiple times.
Paris City Hall also holds furnished rentals responsible for the increase in property costs, whether they be rentals or an actual sale.? This just isn?t the case.? A furnished rental is let more often with the same monthly rent than for an unfurnished rental.? The advantages of furnished rentals are found in other areas apart from commercial goals.? In fact, the laws governing unfurnished rentals have driven property owners into a corner.? Without being able to ask for sufficient guarantees from potential tenants, they cannot be fully assured that the rent will be paid, and thus they have turned to furnished rentals.? These owners, who are mostly French individuals who reside in France and pay their taxes in France, have become the scapegoats for a problem which was created out of nowhere by legislation that is too tough and, it must be said, unfair.
Rent costs, just like the costs of bread, vegetables, clothes, taxes, and everything else in France have skyrocketed.? Are property owners going to be accused of this rampant inflation?? Furnished rentals for those who come to work in France is therefore not responsible, nor is the lack of dwellings, or the inevitable increase in rent as charges and taxes increase while available fiscal deductions are disappearing.? This increase in rent in Paris is equally the reflection of the total investment cost that an apartment purchase in Paris represents, where the price per m? now often exceeds 10,000 ?.
This is a serious problem, and city hall is repsonsible for it. Here are their requests:
The law anticipates that an authorization with Paris City Hall is necessary before transforming short-term rental property/properties for a term of less than one year (or 9 months for a student).? However, this authorization is unnecessary when the property constitutes the lessor?s primary residence. ?This is illogical since then it is only applicable for tourist rentals/only tourist rentals are possible!
Compensation :
The law forecasts that this authorization may be granted under the condition of transforming an equivalent surface area to the rented property for something other than habitation (for example, an office or business).? The goal of this compensation has an intention of preserving the balance between residential and economic dwellings.? However, how many owners possess a commercial space that corresponds to the property that they?re renting, just waiting for it to be transformed?
Without authorization, the owner could be fined 25,000? plus an additional fine of 1,000?? (maximum) per day per m? until the authorization is sorted out.? The?Grande Instance?Court (like the Paris Court of Appeals) applies these sanctions to owners who practice tourist rentals without authorization matched with compensation.
What are the solutions?
One must hope the courts will know how to differentiate between a tourist rental and a furnished rental on behalf of an expatriate living and working in France, or of a French family whose apartment burned down or is undergoing renovations, or of separated couples looking for a temporary solution, etc.
But in the interim, one must remind all the furnished rental clients that they can give their notice at any time, one month in advance, and sign a one-year lease.
This entry was posted on Thursday, August 2nd, 2012 at 11:07 am and is filed under Apartment Rental In Paris. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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