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Authorities Can Limit Renting In the Center of Paris

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The most popular districts suffer from the lack of housing for inhabitancy.

The Paris Mayor's Office is examining the possibility of introducing a quota for furnished tourist accommodation or even a ban on it "in tense areas" of the capital city, reports BFM Immo.

As a reference point, the authorities took the example of Barcelona, a pioneer in the regulation of short-term rental platforms. The restrictions may affect the most popular tourist areas, such as the center of Paris, the Marais and Montmartre, which are already facing a shortage of housing.

"The idea is to learn this issue to understand what such a system might look like in Paris and to what extent it would be useful", - says Ian Brossat, the Deputy Mayor for Housing, told AFP, – If the results of this study prove that the idea is relevant, it will in any case require changes to the current legislation".

The mayor's team wants to get the lawmaker to allow individual communes to adapt the regulation of tourist housing to local characteristics. Thus, in case of success, they will grant permits for any tourist rental housing instead of the current notification procedure.

"Setting quotas for seasonal rentals would be illegal", responded Airbnb, recalling that "municipalities do not have the legal authority to impose such measures that discriminate against seasonal rentals". "The vast majority of hosts on Airbnb are local residents who rent out their own housing from time to time", - the site's representatives emphasize that according to their data 95% of all housing offered on the platform in 2020 was rented for less than 120 days, which is the limit set for the main place of residence.

What about now? In February, the Court of Cassation approved a decision according to which it is impossible to legally rent out apartments for more than 120 days a year through platforms such as Airbnb, without a request to change the terms of use (transfer to a non-residential fund). In essence, the court approved a restrictive "compensation" mechanism: permission is granted to owners who wants to use a second home for short-term tourist rentals only if they buys an equivalent or even larger area that they will turn into residential space to compensate for the reduction in the housing stock.

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