VINGT Paris

Bed & Breakfast in Paris in the home of an owner

From the newsletter of Jean Tacquet A Survival Kit for Paris

Who can be a B&B host?

Anyone can be a host, provided that it is done at his/her primary residence and at least one independent and comfortable room is dedicated for this activity.

How can one get endorsed by the Paris City Hall and benefit from the label Hôtes Qualité Paris?

You must contact one of the organizations approved by City Hall, and sign up with them. Then they will send a professional to visit and make sure your guest bedroom complies with the guidelines.

Can I be independent?

Yes, but you must be registered with City Hall under the latest version of the tourism ordinance, Articles 324-3, 4 and 5 of April 2006, which gives the legal definition of the B&B (called “chambres d'hôtes” in French) as: “Furnished bedrooms located inside a lodging dedicated to welcoming tourists who pay for one or more nights and the related services.” In French: "Chambres meublées situées chez l'habitant en vue d'accueillir des touristes, à titre onéreux, pour une ou plusieurs nuitées, assorties de prestations".

You can download the registration form here: "Formulaire de déclaration à la Mairie".

A copy of the relevant regulation may be found here: “Décret du 3 août 2007".

Can I be a B&B host if I am myself a renter?

Yes, you can, if the lease does not explicitly forbid it. In any case, it is highly advisable to inform the landlord, who in return will check the by-laws of the co-ownership to make sure that there is no provision against this activity. Of course, if you rent in a low-income housing project, in French (H.L.M.) then it is completely forbidden.

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.

The viager system

The viager system of French house purchase accounts for around 10 per cent of all private property sales in France. Under this system, you, the buyer, contract to purchase the property from the vendor in one of three ways, but do not usually take possession until the vendor's death.

It might seem astounding but the system helps elderly people, who may be living alone, to realise the value of their house while still alive, and yet remain in their property. It effectively acts as a pension top-up.

The advantage for the buyer is that it offers the chance to pick up a property very cheaply and often in a good area, and with reduced notaire's fees of only 3 per cent. However, the transaction is essentially a big gamble in that if the vendor lives for a long time, you may not be able to take possession of the property for many years.

The viager system is not a short-term proposition and is primarily suited to institutional investors, high-net-worth buyers looking for somewhere for their retirement, and foreign investors who want a holiday home in France in the medium to long term.

There are three ways of buying a viager property:
* The buyer pays the vendor a lump sum plus a monthly annuity.
* The buyer pays the vendor a lump sum, but no annuity.
* The buyer pays the vendor a monthly annuity only, but no lump sum.

The lump sum is known as a 'bouquet'.

About 95 per cent of viager properties have tenants – in other words, the vendor lives on the premises until he or she either dies or leaves (for instance to enter sheltered accommodation). About 30 per cent of such tenanted properties become vacant before the death of the vendor, which means the buyer can then live in the property or rent it out to create income.

About 5 per cent of such properties are vacant to start with, enabling the buyer to move in straight away, or rent out the property and use the rental income to fund the monthly payments to the vendor.

Rights and obligations
Buying via the viager system entails certain rights and obligations from both parties.

Effectively, the buyer becomes the new owner on the day the title deeds are exchanged. He then has to pay for any major works to be done to the property, along with the land tax. He can sell the property whenever he pleases, without requiring the approval of the vendor, and he can take out an insurance policy to cover him in case the vendor lives a longer life than expected.

In turn, the vendor is allowed to live in the property but not to rent it out. He has to pay for any service charges (such properties are often sought-after apartments in period blocks), local taxes and maintenance.

Calling it off
The contract is void if the vendor dies within 20 days after the exchange of contracts or it is found that the buyer knew that the vendor had an incurable disease when he bought the property! It is also void if the selling price is found to be too low – ie: the figures have been fiddled in some way to avoid inheritance tax.

A viager purchase normally takes about six months to complete.

The Paris underworld

It's essential to check out your cave (cellar) properly when you are buying an apartment. This is the area in the bowels of your building which can be used to stock your wines but also, bikes, old furniture and often nomadic friend's belongings as the pass in and out of Paris in my case - ("Hey, you have a cave, can I leave some stuff for a month or two?"). So, they're a nice little commodity and not to be sniffed at. Always ask if there is one when sussing out a property to buy. It can also add value, even if you don't need it for storage yourself, it could be rented to a neighbour short of space.

Last week, on investigating a cave for a potential purchaser I was stopped in my tracks when I saw this notice posted to the door. Due to thefts, a number of caves had been protected by their owners with traps! I've braved some difficult situations for my clients, normally more likely to be negotiations with tetchy Real Estate agents, but this is ridiculous. Suffice to say I came out unscathed.

If you are considering storing good wine in your new cave it really is important to be sure that it is neither too dry or too humid or you will not do those fine wines any good.

Always check it out first, Caveat Emptor is a very important maxim here in Paris (as it is anywhere but you have been warned!).