VINGT Paris

VINGT Paris owner Susie Hollands in New York Times article on Paris rental market

From New York Times Text: Jean Rafferty,
Image: Benoit Tessier, Reuters

Many people buy a pied-à-terre in Paris to use for a few weeks a year and to rent the rest of the time. Most of them don’t realize, however, that they are breaking the law. Now, the city government is trying to address the problem with a more direct approach to enforcement.

Mayor Bertrand Delanoë ordered an agency last year to warn property owners that renting out residential apartments for less than a year at a time violated French law. The move was intended to address the lack of affordable housing in the city center. Those who ignored the warning, he said, would be prosecuted.

Only about 25 letters have been sent since enforcement began last autumn - most of them in response to complaints made by neighbors. And only a handful of those cases have gone to court.

But the rental industry in this most-visited city in the world is concerned and, as more owners slowly become aware of the issue, confusion is growing. A few have pulled their properties off the market, others have deleted addresses or other identifying details from Internet listings. And dozens of rental agencies have banded together to try to save their lucrative business.

“No one seems to know what this crackdown means, but I feel my business will have to change,” said Susie Hollands of Vingt Paris, a property advisory and management company.

Crackdown on Private Landlords - Paris moves to free up housing in the city centre

Recent moves made by the City of Paris to apply laws restricting the rental of apartments in central Paris may have significant effects for thousands of private owners, in Paris and abroad.  According to the Prefecture de Paris, nearly 38,000 apartments in Paris are being rented for short stays and moves to prosecute some owners of these properties have begun.The reasons cited for the application of this law is to alleviate the chronic shortage of affordable housing in the city centre (see our posts about this from 2006).   Bonapart Paris's Owner, Susie Hollands and well known blogger about French life and property, Tony Tidswell, held a meeting with François Plottin, Chef du Bureau, at the Mairie de Paris’ Direction du Logement et de l'Habitat in Paris on Wednesday, 19 November and Thursday 26 November 2009.

Hidalgo : "Jeudi noir défend une cause juste"
envoyé par LEXPRESS. - L'info video en direct.

Report on L'Express on the housing shortage in Paris.

It is technically illegal for any owner of a property in Paris not classified as commercial to re-let their property for any period of less than one year. The sole exception is for student rentals, where the term can be no less than nine months.    Property owners are obligated to make sure their apartments, and the rental activity, comply with the law, in order to satisfy the legal aspects Paris has set for retail rental "commercial activity" and we are assisting our owners to regularise their situations  Any apartment advertised for short-term rental can be considered as having been rented, and therefore scrutinized under the law, by the authorities.

Bonapart - Rental Report Spring 2009

Suddenly, the medium term rental market in Paris is busier than ever. Demand for quality accommodation has shot up since late 2008. In-coming applicants are bargaining hard but for high-quality apartments we are holding out and getting what our owners are asking for.

The market for corporate lettings has been slowing and companies are less willing to pay for over-inflated relocation packages with specialist companies than they once were. In response to this, Bonapart created a mini relocation package for Microsoft subsidiary Musiwave where we arranged their new employee arrival details, property placement and tailored half-day settle in package to help them get to know their new Parisian neighborhood.

Another trend is that many owners are down-sizing, moving to cheaper countries or another residence and putting their property on the rental market . They may even move to a smaller, cheaper property in Paris, using our services!

We are also placing properties which are for sale on the rental market as vendors realise it’s a smart move when the property may take more time to sell for the right price.  Potential buyers, some of whom may be finding it difficult to get a mortgage themselves, are biding their time and renting property instead.

Our luxury rental properties and short to medium term rental is as busy as ever and holding up beautifully.  It feels like we work twice as hard as before though as we provide many added value services with a social and cultural aspect.  This element is key and in my view will make us stay the distance when old-style Parisian realtors who gave little value to the clients will fall by the way-side, many agencies have already closed.

We feel very positive about the future and certainly think Paris will retain it's ever-lasting appeal, the exciting element is that over the last three years new markets have been opening up, clients from South America and Australasia becoming a real presence, with Paris of course retaining it's unique appeal to almost all nationalities.

For more detailed information or a rental evaluation contact Susie Hollands susie (at) bonapartconsulting.com