Paris Short-Term Rentals: Who is Responsible?

You may be sick and tired of our conversation about short-term rentals in Paris, but the topic has haunted us since November 2009 when the industry was given a blow to the gut by the sudden awareness of rental laws on the books dating back to 1948 that had never been enforced, or even known about by anyone, including the Notaires and property attorneys.

There are those on the side of the city, of course, who believe that one shouldn’t be allowed to rent their own property for financial gain, or who believe that upholding the law is more important than understanding it or changing it because it isn’t reasonable.

This reminds me of the men and women who were against the women who were fighting for the right to vote during the time of the suffragette movement. Was it right that women didn’t have the right to vote? Clearly not, but look how hard it was for women to obtain the vote! And here we are, property owners and industry people, working hard to have the right to do what we want with our own property.

There are many people in the media discussing the subject from all angles. Few actually have any real knowledge or insight, but they do have a voice in the media, whether it be in blogs, forums or articles. And all that misinformation distorts the true picture. It is this on which I caution you. If you’re going to believe what someone tells you, at least ensure that it’s a reputable and trustworthy source who has a real foundation of knowledge on the subject.

This editorial message is a result of reading just such comments and becoming aware of how opinions are formed without much basis in fact. It was also obvious from the many comments we receive that the average individual doesn’t understand the basics of short-term rentals in today’s world, whether in Paris or just about anywhere in the world.

Let’s start with Airbnb.com and the phenomena it has caused. In today’s world, the average renter no longer ‘rents an apartment,’ but rents an ‘Airbnb’ — much like “Kleenex” became the generic term for “tissues.” Airbnb is simply a platform that connects a consumer to a consumer or a landlord with a renter. It is not a rental agency and does not represent or manage those properties advertised on their Web site. The brilliant concept made it absolutely free of charge for anyone to promote the rental of his room or property…until a rental took place and then a commission is paid. It has no responsibility for the property itself and therefore has no responsibility to uphold any rental laws that are applied to the property.

This is also true for VRBO.com (Vacation Rental By Owner), which is exactly the same, except that the landlords pay a set fee to advertise on VRBO, so that there is a financial commitment from the owner of the property which eliminates less serious landlords and properties. Still, VRBO connects consumer with consumer and has no responsibility for the property itself.

There are other sites which advertise rental properties and take a commission when the property is rented, but do not actually represent or manage the property, and therefore the renter is doing business directly with the landlord. Agencies that represent large numbers of properties, say more than 100, are likely to fall into this category, as the management of a property is a very personal and labor-intensive service. Management may include the “meet and greet” of the renter, the housekeeping and the maintenance. It is also a very un-profitable aspect of the business, particularly in France where employment costs run very high.

Parler Paris Apartments – La Belle Notre DameLastly there are the “boutique” agencies, such as ours, ParlerParisApartments.com and our partner’s Paris-Sharing.com, that hand-pick the properties, take all the bookings and fully manage the properties. The owners are almost always absentee who need the service and the agencies are run to provide a professional service to both the owner and the renter.

When you rent directly from an owner, you take a certain level of risk. Firstly, it does not mean the cost of the rental will be less — most properties are priced based on what the market can bear, not on the costs of operation! In fact, you could be paying a very high price without much in return if you are not careful.

Paris Sharing – Le Nodier, View of Sacré Coeur In addition, (we have a ‘saying’ in the industry) ‘a property is only as good as its owner.’ There are good landlords and bad landlords. There are well appointed properties and badly appointed properties. You take your chances and you could win or lose.

With a professionally managed property, you have a much higher chance of getting the quality and service deserving of the rental and should you have any issues, there is someone there to manage the problem (like getting locked out!…a common occurrence).

Some properties advertised on Airbnb, VRBO and the other agencies are, in fact, professionally managed. In the need to compete with Airbnb and the others, the agencies are advertising their properties, not only on their own Web sites, but on the C to C platforms as well. If you prefer to ensure you’re ‘getting what you pay for’ then it would be wise to rent either directly from the professional agencies or to ensure that the property promoted on Airbnb or VRBO is one, too.

To be perfectly clear in regard to the rental laws in Paris: NONE of the agencies have any responsibility to uphold these rental laws — only the owners of these properties do. It is for this reason the business not only continues, but prospers.

The fact of the matter is that people need accommodations and landlords need revenue to maintain their properties. These two facts will not change, regardless of how the city housing department wants to punish those who attempt it. And fortunately, as per the news we recently had, there “Is Light at the End of the Short-Term Rental Tunnel.”

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: [email protected]

 
 

P.S. Making last minute plans for a visit to Paris? Did you know you can rent a Parler Paris Apartments/Paris Sharing apartment for only 3 nights? If you’re booking less than 30 days in advance, we will wave the 4 night minimum stay! There is still availability at some of our most popular apartments. Book your Parisian apartment today!