VINGT Paris

Tax changes for property owners in 2012

2011 was the year of increased austerity measures including exceptional tax increases across the board.

When it comes to capital gains on immovable property, full exemption from tax now applies after 30 years of ownership rather than 15. The main home (résidence principale) remains exempt.  Gains on a second home or investment property are exempt in certain circumstances, but this only affects people who have not owned a main home for four years or elderly/disabled people who have moved into a specialist care home and who meet certain other conditions.

Bed & Breakfast in Paris in the home of an owner

From the newsletter of Jean Tacquet A Survival Kit for Paris

Who can be a B&B host?

Anyone can be a host, provided that it is done at his/her primary residence and at least one independent and comfortable room is dedicated for this activity.

How can one get endorsed by the Paris City Hall and benefit from the label Hôtes Qualité Paris?

You must contact one of the organizations approved by City Hall, and sign up with them. Then they will send a professional to visit and make sure your guest bedroom complies with the guidelines.

Can I be independent?

Yes, but you must be registered with City Hall under the latest version of the tourism ordinance, Articles 324-3, 4 and 5 of April 2006, which gives the legal definition of the B&B (called “chambres d'hôtes” in French) as: “Furnished bedrooms located inside a lodging dedicated to welcoming tourists who pay for one or more nights and the related services.” In French: "Chambres meublées situées chez l'habitant en vue d'accueillir des touristes, à titre onéreux, pour une ou plusieurs nuitées, assorties de prestations".

You can download the registration form here: "Formulaire de déclaration à la Mairie".

A copy of the relevant regulation may be found here: “Décret du 3 août 2007".

Can I be a B&B host if I am myself a renter?

Yes, you can, if the lease does not explicitly forbid it. In any case, it is highly advisable to inform the landlord, who in return will check the by-laws of the co-ownership to make sure that there is no provision against this activity. Of course, if you rent in a low-income housing project, in French (H.L.M.) then it is completely forbidden.

VINGT Paris owner Susie Hollands in New York Times article on Paris rental market

From New York Times Text: Jean Rafferty,
Image: Benoit Tessier, Reuters

Many people buy a pied-à-terre in Paris to use for a few weeks a year and to rent the rest of the time. Most of them don’t realize, however, that they are breaking the law. Now, the city government is trying to address the problem with a more direct approach to enforcement.

Mayor Bertrand Delanoë ordered an agency last year to warn property owners that renting out residential apartments for less than a year at a time violated French law. The move was intended to address the lack of affordable housing in the city center. Those who ignored the warning, he said, would be prosecuted.

Only about 25 letters have been sent since enforcement began last autumn - most of them in response to complaints made by neighbors. And only a handful of those cases have gone to court.

But the rental industry in this most-visited city in the world is concerned and, as more owners slowly become aware of the issue, confusion is growing. A few have pulled their properties off the market, others have deleted addresses or other identifying details from Internet listings. And dozens of rental agencies have banded together to try to save their lucrative business.

“No one seems to know what this crackdown means, but I feel my business will have to change,” said Susie Hollands of Vingt Paris, a property advisory and management company.

VINGT Paris - (previously Bonapart Consulting and I V Y paris)

We're in the final stages of migration towards the new company, VINGT Paris.  You'll find our rental portfolio has already moved over to the (temporary) website.  VINGT Paris is devoted completely to the twenty arrondissements of Paris (and la banlieue too!)  VINGT Paris is a direct evolution of Bonapart Consulting and IVY paris, a relocation and real estate service and an artist salon and network that has for the past seven years brought people together through varied and interesting events, as well as through finding their perfect parisian apartments.  We provide a unique and valuable resource for everyone and hope to further develop an already robust and thriving community. Please join us and stay in the loop on upcoming event by signing up to our newsletter . From artist profiles to lecture series to picnics in the parks and everything in between, VINGT Paris is a starting point and a local resource to connect you to Paris.

Free legal advice on French issues

Via The Connexion: A FREE telephone advice line is running this week to help anyone with questions about family life, buying a property or inheritance in France.

The service is part of the annual Semaine d'Information sur les Droits des Familles - a week-long information campaign organised by the Employment Ministry, which has family affairs in its brief.  Lawyers will be on hand to answer questions about the legal and tax implications of marriage and the pacs, buying property together, life insurance and preparing a will.

You can call the helpline (in French) on 3620 and say "Notaires et Familles" after the beep. It is open every day from 14.00 to 18.00 until Friday evening (February 19).  A series of free conferences are also being held in Paris this week - see the programme here for full details.

New star system for French hotels

Read the full article on Charles Bremners site - Travellers in France know not to pay attention to the number of stars attached to a hotel. You can turn up at an establishment rated with three and find the plumbing broken and the bed in a state of decay. The government is finally getting around to changing a state of affairs that is odd for a country which receives more visitors than any other. Under a new tourism law, hotel ratings are to be put into the hands of outside consultants. Classifications will be reviewed at least once every five years. Under the current system, in force since 1986, once a hotel received its stars, no-one checked again to ensure that they were still deserved. That means that a three-star hotel of 1986 can still boast of its rating even if it has not had a lick of paint since.......
 

Fédération des Loueurs d’Appartements Temporaires

 
This week, we got together with representatives of some of the key players of the short-term Paris rental sector in order to act in a concerted and efficient manner to defend the sector and our clients with the aim of obtaining a modification of the law or of its application.   The « Fédération des Loueurs d’Appartements Temporaires » (Federation of Renters of Temporary Apartments), or FLAT, has been created and will be the organ through which the profession will get together to express in a unified voice the value of our sector and the direct and indirect implications. FLAT has identified and commissioned a specialised lawyer, a press relations agency and a political lobbying agency to accompany us swiftly and effectively, to start a dialogue with the political leaders, to evolve the laws and their application modes.

Paris rental situation - twitter feed

Having taken the initiative to discuss with our owners and some press the major and minor players on the Paris vacation rental market came together this week.  I was reminded of the Mafia heads of the Family meeting in the Godfather.  After some buried their heads in sand, it is time to face the music.  Therefore there was not a great reception for me as I was seen as having broken the omerta.  Stay tuned here, I have set up an emergency twitter feed to send alerts easily to you so that you can get the up to date information as this unfolds.

So I was asked to speak about my meeting with the Department de Logement, which I did and transmitted the information I shared with owners which work with my company last week.

French based rental agencies are mobilising to set up a professional body, pressure group and employ a political lobbyist. It is very diificult to ascertain exactly how this will unfold but it is clear that it will take time to see exactly how the laws will be applied.  This could be a long, drawn out saga.  

Crackdown on Private Landlords - Paris moves to free up housing in the city centre

Recent moves made by the City of Paris to apply laws restricting the rental of apartments in central Paris may have significant effects for thousands of private owners, in Paris and abroad.  According to the Prefecture de Paris, nearly 38,000 apartments in Paris are being rented for short stays and moves to prosecute some owners of these properties have begun.The reasons cited for the application of this law is to alleviate the chronic shortage of affordable housing in the city centre (see our posts about this from 2006).   Bonapart Paris's Owner, Susie Hollands and well known blogger about French life and property, Tony Tidswell, held a meeting with François Plottin, Chef du Bureau, at the Mairie de Paris’ Direction du Logement et de l'Habitat in Paris on Wednesday, 19 November and Thursday 26 November 2009.

Hidalgo : "Jeudi noir défend une cause juste"
envoyé par LEXPRESS. - L'info video en direct.

Report on L'Express on the housing shortage in Paris.

It is technically illegal for any owner of a property in Paris not classified as commercial to re-let their property for any period of less than one year. The sole exception is for student rentals, where the term can be no less than nine months.    Property owners are obligated to make sure their apartments, and the rental activity, comply with the law, in order to satisfy the legal aspects Paris has set for retail rental "commercial activity" and we are assisting our owners to regularise their situations  Any apartment advertised for short-term rental can be considered as having been rented, and therefore scrutinized under the law, by the authorities.

How to evaluate a property

We found a wonderful article online recently and thought it would interest our readers.  When purchasing Parisian property, buyers are frequently misled by the average price per m2 which only gives a general idea but does not necessarily reflect the true value of a property, which can depend on several factors : address, level in the building, quality of common areas, services, etc. The table below gives an indication of how to evaluate, even though we all know, each property is a case apart. (Source PAP newsletter)

Floor Level	Compared to average price/m2
Ground floor overlooking street	- 15 à - 25 %
1st floor	- 7 %
1st floor with café or trader open late below	- 20 %
3rd floor to 6th floor with lift	+ 2,5 % per floor
Location	Compared to average price/m2
Overlooking dim courtyard	- 10 %
Building less than 10 metres away	- 10 %
Terrace or garden	+ 5 à + 15 %
Double orientation East/West	+ 3 à + 5 %
Beautiful view (Parisian monument, open views)	+ 5 à + 20 %
High level of disturbance from traffic	- 15 à - 20 %
Technical qualities	Compared to average price/m2
Property entirely renovated (electricity, plumbing, insulation, etc.).	+ 15 à + 20 %
Property requiring light redecoration (painting, floors, decoration, style)	- 5 à - 10 %
Property requring renovation (depending on the extent on the renovation)	- 10 à - 30 %