VINGT Paris

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.

How to evaluate a property

We found a wonderful article online recently and thought it would interest our readers.  When purchasing Parisian property, buyers are frequently misled by the average price per m2 which only gives a general idea but does not necessarily reflect the true value of a property, which can depend on several factors : address, level in the building, quality of common areas, services, etc. The table below gives an indication of how to evaluate, even though we all know, each property is a case apart. (Source PAP newsletter)

Floor Level	Compared to average price/m2
Ground floor overlooking street	- 15 à - 25 %
1st floor	- 7 %
1st floor with café or trader open late below	- 20 %
3rd floor to 6th floor with lift	+ 2,5 % per floor
Location	Compared to average price/m2
Overlooking dim courtyard	- 10 %
Building less than 10 metres away	- 10 %
Terrace or garden	+ 5 à + 15 %
Double orientation East/West	+ 3 à + 5 %
Beautiful view (Parisian monument, open views)	+ 5 à + 20 %
High level of disturbance from traffic	- 15 à - 20 %
Technical qualities	Compared to average price/m2
Property entirely renovated (electricity, plumbing, insulation, etc.).	+ 15 à + 20 %
Property requiring light redecoration (painting, floors, decoration, style)	- 5 à - 10 %
Property requring renovation (depending on the extent on the renovation)	- 10 à - 30 %

Join the Paris express

From the TimesOnline (UK) - A SURGE in the popularity of second homes is set to follow the Chancellor’s tax concessions unveiled this week. Anyone selling such a property after nine years will benefit from the new low rate of capital gains tax on the profits – only 18 per cent. According to Liam Bailey, Knight Frank’s head of residential research, “this could have the effect of raising investment volumes – and hence underpin prices in investment and second-home locations”. Paris, which is already receiving a boost from the high-speed Eurostar train link from St Pancras starting next month, is set to be one of those locations. House prices in the French capital rose by 9.9 per cent last year.

They rightly address in the article the best method of renting for increased returns and security as a landlord that you should concentrate on furnished rental property of a one year lease - see our own article.

French Real Estate Glossary

ANCIEN: older building
APPARTEMENT: apartment
ASCENSEUR: elevator/lift
ASSEMBLÉE DES COPROPRIÉTAIRES: general meeting of owners
BALCON: balcony
BUANDERIE: laundry room
BONNE DISTRIBUTION: well laid-out floor plan
BOX: parking
BUREAU: study/office
CARACTÈRE: character, something unusual...
CARRELAGE: ceramic tile
CAVE: cellar
CC - CHARGES COMPRISES: charges included, usually refers to the agency's fee
CHEMINÉE: fireplace
CONFORT: comfortable
COPROPRIÉTÉ: co-ownership group
CHAMBRE: bedroom
CHAUFFAGE: heating
CONGÉLATEUR: freezer
COULOIR: hallway
CUISINE: kitchen
CUISINE AMÉRICAINE: open kitchen
DIGICODE: entry code system to building
DOUBLE EXPOSITION: double exposure
DOUBLE SÉJOUR: large living room
MOULURES: mouldings on the ceilings of classic French apartments
OCCUPÉ: occupied, someone is living there, sold with a tenant
PARKING: parking
PARQUET: hardwood floors
PARTICULIER: owner listing
PARTIES COMMUNES: common areas
PIÈCE: room (not kitchen or bath)
PLACARDS: closets
PDT, PIERRE DE TAILLE: cut stone building
POUTRES: wood beams
RANGEMENTS: storage, cabinets, shelving
RAVALÉ: restored, cleaned
RDC, REZ-DE-CHAUSSÉE: ground floor, street level
RÉAMÉNAGER: to be renovated
RÉCENT: recently constructed building
REFAIT NEUF: newly remodeled
RÉFRIGÉRATEUR: refrigerator
SALLE D'EAU: bathroom with shower and sink
DOUBLE VITRAGE: double-paned windows
DOUCHE: shower
DRESSING: walk-in closet
ENSOLEILLÉ: sunny, lots of light
ENVIRON: approximately
ÉQUIPÉE: fully equipped
ÉTAGE: floor
FOUR: oven
GARAGE: garage
GARDIEN: concierge/caretaker
HAUSMANNIAN: building from Haussmann era - 19th/20th century
HONORAIRES: fees
HORS CHARGES: charges not included
HOTTE: ventilation hood
HSP, HAUTEUR SOUS PLAFOND: high ceilings
IMMEUBLE: building
INDEPENDENT: separate
INTERPHONE: intercom system
LAVE-LINGE: clothes washer
LAVE-SÉCHAGE: clothes dryer
LAVE-VAISSELLE: dishwasher
LOCATION: rental
MEUBLÉ: furnished
MOQUETTE: carpet
SDB, SALLE DE BAINS: bathroom
SERVICE: maid's room
SOUS-SOL: below ground
SOLEIL: sunny
STANDING: luxurious, grand standing building
SUR COUR: overlooking courtyard
SUR JARDIN: overlooking garden
SYNDICAT DES CORPROPRIÉTAIRES: collective body of owners of common property
TABLE DE CUISSON: range
TAPIS: area rug
TAXE FONCIÈRE: annual real estate tax
TAXE D'HABITATION: annual occupancy tax
TERRASSE: terrace
TOMETTE: red clay tile flooring
TRAVAUX À PRÉVOIR: work to be done
VIDE: empty
VITRÉE BAIE: bay window
WC: toilet

Paris, city of romance and rising returns

Great article (apart from the mistakes - minimum rental size 6m² - quoi?) from the Daily Telegraph on Paris investment:

"Paris may be more readily associated with fine food and romance, but it is also Europe's top city for property investment, according to a new report. If you are looking for the city that offers the best returns and lowest risk, the French capital will be unbeatable in the next two years, according to 400 experts interviewed by the Washington-based Urban Land Institute and accountants PricewaterhouseCoopers."

I told you so.........

Europe's top cities
1 Paris
2 London
3 Stockholm
4 Munich
5 Lyon