Short-term rental regulations in Paris: What you need to know

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The Insider @ Houst
Last updated on
May 2, 2023

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Short-term rental regulations in Paris: What you need to know

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Short-Term Rentals in Paris have come under certain regulations due to the high demand of the unregistered occupancies and arbitrary registration process where no document is required. This is the reason, there was a mushroom growth of the short-term rental market in the city of Paris.

Growing the number of unregistered short-term rental houses in Paris, the authorities started to take strict action after noticing the infringements of the amenities and local regulations. All of these short- term letting regulations came into effect on December 1, 2017.

The motive e=behind these regulations was to initiate a crackdown on the illegal short-term letting in Paris which has the highest listings on Airbnb after the USA. The unregistered and illegal sublettings cause government loss of taxation and revenues.

In this blog, we are going to discuss the short-term rental market in Paris along with the regulations. Moreover, we will give you a brief introduction to the best holiday rental management company in Paris which is operating globally with a number of clients. So, let’s dive in!

Table of Contents

Short-Term Rental Accommodation in Paris

Short-term rental accommodation is a magnet for all the property owners who want to benefit from the elevated profits earned by the Airbnb hosts in Paris. That being said, short-term rental accommodation refers to the short stays for a period of less than thirty days in a residential accommodation. 

The short-term rentals in Paris have certain regulations and they differ according to the nature of property and use of property. With the growing online platforms of Airbnb, VRBO and HomeAway, the short-term rentals have created many opportunities for the renters to earn a passive income along with the long-term rentals.

So, if you are also wishing to take advantage of this vibrant rental market in Paris, you should be aware of the short-term rental regulations in Paris. 

Town Hall Paris 

Town Hall Paris is a government organisation dedicated to the tasks of enforcing housing, short-term rental laws, tourist laws and issuing permits. The department of Housing and Habitats in City Hall is responsible for all of these activities to ensure compliance of the regulations. 

  1. Regulation for Primary Residence

Regulation for Primary Residence differs from other types of rental properties. To register your business as short-term let in Paris is allowed only for Primary Residence. In other words, if the owner resides in his residence for at least eight months in a year. 

  1. 120-nights Cap on Primary Residence

In your primary residence, there’s a 120-days cap on the maximum number of 

  1. Exceptions to 120 Nights Cap

That being said, the primary residence can be rented out as short-term rental to anyone for more than a year, if you’re not staying for more than four months at your home due to health issues. 

The registration of Primary residence is straightforward. You need to visit the official website of Paris City Hall. After completing your account details and online declaration, you will receive an email with a 13-digits registration number. This registration number will be used on all online platforms for listing and advertising of your short-term rental accommodations in Paris. 

Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Paris team to uncover your property’s revenue potential.

Regulation of Secondary Home

Secondary home regulations are very strict and cumbersome due to the lengthy process of registration and zoning requirements. The foreign owners can rent their second homes for more than a year as a short-term rental in Paris. 

Similarly, the hosts with one room accommodation (Residing himself also) are also exempt from the 120 days cap limit just like secondary homeowners. City officials allow renting out secondary homes only for short periods.

The 120 Days Cap on the number of night stays in a year is not applicable to the second homes. The owners, however, will have to obtain declaration or change of use authorisation from the City of Paris.

After this, you will be required to inform about the rental activity, register your business with the City. As a result of all these procedures, you will obtain a registration number that will be used at online platforms to list your business. 

Regulations for Non-Residential Home

A non-residential home in France is referred to as a place where the owner lives for less than one month. For this type of property, no registration is required for the listing as short-term rental accommodations because they’re categorised as bed and breakfast, tourism residence and hotel.

Regulations For “bail mobilité” in Paris. 

Extending for a period of one month to ten months, this short-term rental agreement differs slightly in nature. For example, the owner of the residence can rent out his place to the professionals, students with temporary posting or short training.

Under this arrangement, the tenant is required to provide proof of their training or job for a legal stay as “bail mobilité” in Paris. The mobility lease requires the provision of all legal documents with the tenant for ensuring the compliance of regulations.

The rent is determined by the renter with the exception when the residence is located in a zoning area where there’s shortage of houses. This lease agreement is different from secondary home letting and it can be listed as mobility lease on online platforms.

Moreover, the renters are exempted from the tourist tax under the mobility lease agreement. Lastly, change of use declaration is also not mandatory for the renter because it is a residential accommodation. 

Penalties for Violating Short-Term Letting Regulations in Paris

The infringements of registration regulations for short-term lets leads towards harsh and draconian penalties in Paris. For example, an excessive penalty of €5000 will be charged if the owner fails to register a business with The City. For platforms, this civil penalty gets more severe and they have to pay €12,500 for violating the registration regulations.

Renting out a property that violates building safety codes, the fine is up to €25,000. Besides, if the host violated the limit regulation of 120 days, he will be charged with a hefty fine of up to €10,000. 

Five years of imprisonment is accompanied with a stringent fine of up to €75,000 for providing false declaration under the article 441-2 of Penal Code.

Tax on Short-Term Rental Income in Paris

Short-Term Rental income is subject to taxes and social security contributions in Paris. For example, the amount of tax on short-term rental income depends on the annual income. Similarly, the social security contributions are also determined by the income bracket. For this, the renters need to specify their rental income on income tax returns.

To collect the maximum taxes in Paris, the proof of ownership of the short-term rentals is required by the Town City Hall. The motive behind this regulation is to ensure every renter is paying rental income tax and is not evading it.

Tourist Tax in Paris

According to the official website of the tourist tax, it is calculated on the basis of the number of persons per night. The standard rates are almost similar for all residential types. The way a tourist tax is calculated makes a difference. 

The calculation of tourist tax in Paris consists of the following:

  • Number of adults
  • Number of nights
  • Number of stars a short-term rental has as a review.

Is Subletting Legal in Paris?

Yes, subletting is legal in Paris. With the written consent of the owner, the tenant can sublet the short-term rental accommodation. If the consent has not been obtained, a serious action will be taken by the City. 

The illegal subletting in Paris may cause the tenant to pay a fine equal to the illegal earnings he made. Moreover, the tenant will be evicted from the short-term rental accommodation. Such a case was reported in 2018 when a tenant had been subletting an Airbnb listed short-term let on Airbnb without the consent of the owner since 2011. When the owner discovered this illegal act of subletting, he filed a suit against her. In return, the owner received all the earnings of up to 47,000 euros. In short, the short-term subletting is prohibited in Paris without the prior approval or consent of the owner.

You Don’t Need to Do Anything, Houst is Right There to Assist You

Houst is the best property management Company with sustainable hosting services in Paris. It is one of the best hosting listing short-term rental service providers. The reliable services have gained immense credibility since 2015 with thousands of clients around the globe. 

  1. Houst Relies on Cutting-Edge Technology

Houst stands on the top-notch technology for standing out in short-term rental business. Globally, we offer tailored solutions to our clients according to their local laws and regulations. It has also become one of the online platforms for accepting property management services for global clients. 

  1. Customised Solution for Each Client

Houst offers bespoke listing and hosting services to each of the short-term rentals, following the local laws and regulations around the world. With the help of highly trained staff, Houst ensured each of their clients is receiving top-tier professional listing and short-term let services. 

  1. Maximising Income

Houst ensures guaranteed rents and increased income for the clients by offering excellent services. With an affiliate program, other people can also earn up to $500 for referring Houst to the potential hosts. The renters also can earn passive income by getting the 24/7 guest management and accurate listing on online platforms. 

  1. Eco-Friendly Hosting Services 

Eco-friendly and sustainable hosting services always support the use of a clean and green environment. The energy efficient solutions at the short-term rental accommodation allows the optimum use of resources and saves cost.

  1. Professional Cleaning and Housekeeping Services

Trained staff at Houst ensure property cleaning and housekeeping services for the clients. As a result, the safety standards are also ensured by the dedicated housekeeping services. Moreover, property insurance, guest vetting, listing creation and accurate prices ensure the reliable management services by Houst.

Going Forward

Lastly, we can say that Paris allows short-term rentals with some specific regulations for the primary, secondary, non-residential and mobility rentals. The regulations differ from each other. Registration is not required for non-residential ,mobility leases and long-term rentals.

However, the laws regarding penalties are draconian in nature due to the higher number of unregistered businesses in Paris, to curtail these unregistered businesses, the penalties have been set at the exorbitant levels. 

Besides, there’s a tourism tax which is levied according to some calculation rules as described in this article. Similarly, subletting is also allowed in Paris. In short, the short-term rental regulations are very attractive but restrictive which may prevent many potential hosts from listing their businesses in Paris. Contrary to this situation, the number of hosts listing their business is increasing with every day due to the lucrative revenues. 

Houst can help you manage your business by reducing costs and increasing revenues. So, you can rely on this exceptional short-term let management company. Start a partnership with Houst today.

The Insider @ Houst

The Insider @ Houst

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. If you have hosting inquiries, please write to us at expert@houst.com. For guest inquiries, reach out at guest@houst.com. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

The Insider @ Houst

The Insider @ Houst

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. If you have hosting inquiries, please write to us at expert@houst.com. For guest inquiries, reach out at guest@houst.com. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

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David
Account Manager

"I have a philosophy in life called keep it simple. I don't live to work, I work to live. This is the first time I've leased this property on Airbnb. A house allows me to have vision of all the revenue and all the expenses associated with the apartment. They work as a well-oiled machine. They strive very hard to keep both myself and the tenants happy."

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Professional Landlord

"Honestly, if I didn't have Houst, I don't think I'd have this house anymore. With Houst's help, I can focus on my busy life while they manage my Airbnb listing. Guests call this place the 'magic cottage', and Houst makes it possible to share its special charm without any stress."

David
Account Manager

"I have a philosophy in life called keep it simple. I don't live to work, I work to live. This is the first time I've leased this property on Airbnb. A house allows me to have vision of all the revenue and all the expenses associated with the apartment. They work as a well-oiled machine. They strive very hard to keep both myself and the tenants happy."

Jules
Sales Director

"Honestly, if I didn't have Houst, I don't think I'd have this house anymore. With Houst's help, I can focus on my busy life while they manage my Airbnb listing. Guests call this place the 'magic cottage', and Houst makes it possible to share its special charm without any stress."

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