With more than 40,000 ads published to date on Airbnb, Paris is definitely the world capital of peer-to-peer rentals. Paris is ranked the #1 city on Airbnb. This is mainly because renting out Parisian property is very lucrative. With some landlords abusing the system, the public authorities have, for more than a year now, decided to put restrictions on how property is rented in the French capital. So, how do you go about renting your property via Airbnb in Paris now?
Paris, an alarming situation and a housing shortage
Last year Paris witnessed more than 47 million visitors. Its popularity with tourists coupled with the huge number of people living in the capital is creating a serious housing shortage.
Tourism had the perverse effect of increasing the number of listings of Paris rentals on Airbnb and other similar sites. People would purchase entire buildings, renovate them and list them entirely on Airbnb. This reduces the rental stock for Parisians looking for a place to live in the city. To put this into perspective, since the beginning of 2019 Paris has lost between 20,000 and 30,000 properties from the ‘main residence’ market. By resurrecting the article L631-7 of the Construction and Housing Code, the government has made it difficult to rent accommodation in Paris on Airbnb. Properties can only be rented on a short-term basis is certain criteria are met.
How do you rent your property in Paris on Airbnb?
An authorisation from the City of Paris is necessary to rent your property on Airbnb. To obtain this authorisation, two conditions must be met:
- You must submit an application to change the use of your home so that it becomes administratively a commercial space.
- The French government has placed restrictions on how many commercial properties can be in one area in Paris. This can make it challenging for property owners wishing to change their residential building into a commercial one.
If you buy a residential property and you want to rent it out short-term, you can apply for a commercial title when you make your application. This will allow you to turn an office building into housing, for example. Do note that the sale of commercial titles is usually between €1,500 and €2,000 per square metre.