Living In Paris

Did you know that only properly licensed landlords are allowed to rent out vacation apartments in Paris? Many of the landlords you see advertising Paris vacation apartments are renting them out illegally.

There’s been some limited press [update: see the July 6  New York Times article and The Daily Telegraph's July 9 article] and online discussion about the subject, but basically, the law states that it is illegal for any owner of a property in Paris not classified as commercial to rent out their property for any period of less than one year. That makes many of the weekly and monthly vacation rentals advertised, in fact, illegal. Owners are supposed to register these properties as commercial, which then makes their rental income subject to tax. (That’s why many of them don’t register.)

People renting out their homes (or second homes) in Paris is nothing new. What IS new is the recent crackdown  / attempts at enforcement by the Paris government. The New York Times article states that prompted by the tight rental market and lack of affordable housing for actual Paris residents (not vacationers) in the city, and also by the numbers of foreigner owners funneling real estate income out of the Paris economy, the Marie of Paris sent out 25 warning letters to unregistered landlords beginning in late 2009, threatening steep fines for those who rent without being properly registered.

What does all this mean for you? The good news is that the off-the-books landlords typically charge less for rent, which makes stays in Paris cheap for expats. The bad news is that being in an illegal apartment nullifies any insurance that could protect you in case of damage to the apartment (or worse yet, the building). The landlord’s insurance won’t cover you, so you’re personally liable for damage, unless you’re a resident of France and have homeowner’s insurance at your primary residence (i.e., a French resident from Marseille, who’s renting a vacation apartment in Paris and has French homeowner’s insurance on their home in Marseille. Their Marseille insurance would extend to their Paris rental). And your homeowner’s insurance won’t cover you if you’re occupying an apartment illegally.

SO WHAT CAN YOU DO?

It’s difficult to know which apartments are commercially registered, especially since even the apartments listed with agencies may belong to unregistered owners. One way to protect yourself is to rent from an agency that owns the apartments themselves, as opposed to managing the listings for various individual owners. These Paris apartments would be properly zoned. Conversely, I know people who aren’t concerned at all about the law and will rent from whoever offers the best deal. Until the laws are broadly enforced, you still have some options when it comes to renting a Paris apartment.

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Related posts

• What to Look for in a Paris Apartment
• Starting the Paris Apartment Search

Tags: Paris Apartments