RdC: Get on the Ground to Get Around the Short-Term Rental Laws

RdC = “rez-de-chaussée.” Remember these words. They mean “ground level.” Ground level apartments in Paris have never been so desirable! It’s one of the ways to beat the city short-term rental regulations.

Credentials – Ordre de Mission Agent, FrontCredentials: Ordre de Mission Agent, backRdC at Arts and MetiersRdC in the 3rdRdC in the 3rd, interiorRdC in the 7thRdC in the 7th, interior

According to the city regulations (see the ACTUAL letter issued by the city to offenders of short-term rentals), all furnished rentals in residential premises must meet two criteria pursuant to Article L.632-1 of the Code of Construction and Housing (CCH):

1) subject to a lease agreement for a minimum of one year (or nine months for a student) and
2) constitute the principal residence of the occupant.

Otherwise, the residential property must have a change of usage to commercial.

If one receives this letter, he will have 90 days within which to prove his innocence (in France one is guilty until proven innocent):

The owner can either:

1) demonstrate that the property is occupied as a principal residence where he lives normally and effectively, and where it is the center of his personal or professional interests or…

2) prove that the property is deemed to have commercial usage, or…

3) stop the unauthorized activity and restore the premises to housing.

City inspectors have the right (believe it or not!) (Article L 651-6 of the CCH) to visit the premises as long as they have a personal mission statement and an identity card bearing their photograph. The tour of the premises may only take place from 8:00 a.m. to 7:00 p.m.; the occupant or local guardian must allow them to visit upon presentation of their credentials; the visit takes place in his presence (occupant or guardian). The sworn officer of the municipal housing department may, if necessary, open doors and visit the property in the presence of the mayor or police commissioner, without the occupant or guardian.

In effect, if your guardian or concierge has a key to the apartment, they have the right to enter even if you aren’t there. And even if not, a mayor or police commissioner can enter the premises by breaking down the door, without a warrant!

Read it for yourself on the letter I received or the credentials I copied when the inspector came to my door, after letting herself into the building without permission! 

While the industry federation (the SPLM — the Paris Furnished Rental Association)  and other individuals (such as myself) are trying to get the city regulations amended to include at least the first secondary property, among other changes to make the laws more fair for all, there are ways to beat the city at their own game: get on the ground to get around the laws!

Until changes happen, you can be legal by offering a property for short-term rental that already has a commercial usage designation. This is true for almost all RdC (rez-de-chaussée), or ground level properties. Until now, these properties were not desirable for habitation and were some of the least expensive on the market.

All that has changed, thanks to the city’s campaign to turn short-term housing into long-term housing. RdC apartments don’t have to be commercial spaces directly on the street or the guardians’ humble abodes, but can very often be an ‘atelier’ inside a beautiful 17th, 18th or 19th-century courtyard with lots of light, if not lots of view. And this is the primary trade off — one must give up aerial views of the Eiffel Tower, the Seine or other Paris cityscape in lieu of legality, so the city inspectors will never come knocking at your door.

One other major advantage of RdC properties is that a lack of stairs means it may be possible the apartment can be wheelchair accessible or perfect for the handicapped or elderly who want to avoid stairs. With the right property, it can be a win-win situation for all.

Let’s face it — one can rent his property short-term until he gets caught! We don’t recommend ceasing your rentals until then — not until you receive a letter from the city like the one above. Meanwhile, you can certainly install measures that protect your short-term rentals from being denounced by a neighbor or discovered on a Web site by the city. There are plenty of properties on the market that have been successful rentals for a long time and likely to continue to be so for a long time to come…but if you are risk-averse, then play it safe. Get on the ground.

We are scouring the market for ground level properties. Our associate agents are keeping us posted on properties that fit the bill. If you wish to consider this option, then now is the time to act…before their prices go up, before the inventory goes down and while all the elements such as low interest rates and low rate of exchange are aligned…as they are now.

First, sign our petition!

Then, contact us for information on RdC properties that will make great short-term rentals!

A bientôt ,

 Adrian Leeds

The Adrian Leeds Group

(photo by Erica Simone)

Respond to Adrian: [email protected]

 

 

 

   

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