Ever get that suspicious look when mentioning you rent out your Paris apartment? I mean, you have an apartment in Paris and you’re paying for it. Isn’t what you do with it your business? Aren’t you free to put an ad up and lease it whenever you’re not there?
Well, there’s nothing illegal about renting out a home, but with housing running low, especially in the French capital, it’s all about respecting the rules.
It’s a bit blurry for you? Let’s go through the exact conditions you need to respect as a lessor to rent out your home in Paris before you find yourself in a tricky situation. I included an infographic cheat sheet at the end of this post to make it simple to understand.
Remember Naz from the TV show “The Night Of”? Accused of something he didn’t do, his life becomes a nightmare. Ughhh! If you don’t want to go there, you need to be flawless and be able to prove you do things by the book. Start by answering these simple but necessary questions: Are you a homeowner or a tenant? Is it your main residence or secondary home? Are you renting for short-term or long-term periods?
Here’s How It Works:
Renting out your Paris home
You live in Paris or in the suburbs and love your home. It’s “welcomy”, well located, equipped and connected (who’d survive without it?) You know it would be an easy rental. Are you allowed to rent it out? Is there a specific procedure?
If it’s your property and your main residence (you live there at least 8 months per year), you can rent your apartment for short periods amounting to a maximum of 4 months cumulated over one year (an average of 10 days per month).
Why not longer? Because the use of your furnished rental is intended for housing only.
In this case, no special procedure is needed from your city hall or the Prefecture. However, if you live in an apartment building, check building regulations for objections to short-term rental from your co-owners.
As a tenant of your main residence, since the application of the Alur Law (March 27, 2014), sublets are forbidden (in furnished or unfurnished rental agreements) except with the written agreement of the landlord.
With your landlord’s authorization, short-term rental periods are accepted within the same maximum duration of four months per year. Tax payments are the same as a landlord’s.
In both cases, don’t forget to pay the taxe de séjour (tourist tax). Various online short-term rental platforms include this tax in their fees invoiced to hosts and transfer it to the town hall directly.
Renting out your Parisian secondary residence
You fell in love with Paris, bought a lovely place and plan to rent it out occasionally to pay your mortgage? You have two options: long-term and short-term rentals.
Due to a housing shortage in the Paris area and what is considered hotel competition, renting out short term the investment property you don’t live in all year is strongly discouraged.
As of January 1, 2015, an owner renting out a secondary residence in Paris for short-term periods (from day 1) has to follow a precise process:
- Declare your intention to city hall to do so.
- Request an authorization to use this residence as a furnished vacation rental (meublé de tourisme). This is mandatory in Paris and cities of more than 200,000 inhabitants (so Paris suburbs as well).
- Finally, you need to offer a compensation or replacement of the square meters you’re taking off the private, long-term housing market (as a rental or a purchasable property) by the same surface area (or sometimes double) in the same arrondissement for long-term housing. How? By transforming sales or office premises into a residence. Why in the same arrondissement? To prevent a shortage of long-term rentals in the most popular Paris areas (1st, 3rd, 4th, 5th, 6th, 7th, 8th).
Leasing your property on a long-term period is, on the other hand, a simple solution. Minimum rental periods are one year for furnished rentals, three years for unfurnished rentals and 9 months for students. No declaration to the town hall, no authorization required, no tourist tax to be paid.
What if you disregard the rules?
Playing hosts to various guests on a yearly basis in your main residence (as a landlord or tenant) or getting occasional rents from your Paris pied-à-terre is a risky business.
Renting out short term beyond four months for your main residence or from day 1 in your secondary residence with no declaration, authorization and compensation means facing a penalty of up to 25,000 Euros.
What happens when you sublet without asking for your landlord’s authorization?
It can lead to the termination of your rental contract and that of your subtenant. Plus, it can cost you damage fees or even criminal penalties. Regular rounds are organized by city hall teams to check on suspected rentals, often identified on online platforms by appearing too often.
Last, and to sum this all up, here’s an infographic cheat sheet:
Refer to it and share it with friends that might be interested by renting out. Your next step? Finding those tenants!