Game changer: New rental option for visitors to Paris gives relief from “Airbnb” crackdown

The new Loi Elan, passed in November 2018, authorized property rentals of one month or more for those on work or study travel. After six months, the new law seems to be remedying some of the negative consequences of the crack-down on short term Airbnb-type vacation rentals.

“This is a game changer”, according to Pat Combrisson, Executive Partner of HavenIn, Paris For Rent and Paris Luxury Rentals. In recent years second home owners with property in larger cities like Paris were limited to renting their property for nine months or a year at a time, meaning that they were largely unable to use their properties as a second home. Combrisson says “the new law gives a lot more flexibility and it’s catching on as an option among those visiting Paris. We have seen visitors coming to Paris and taking advantage of this new law for purposes as diverse as writing a book, taking language or cooking classes, or attending a conference.”

Officially, the mobility lease is a short-term rental agreement for a furnished dwelling to a tenant who is in professional training, seeking higher education, working in an apprenticeship or internship, doing voluntary civic service, pursuing a career change, or on a temporary assignment. The law also specifies that it is necessary to indicate in the body of the lease document the reason justifying the mobility lease. In reality there is no enforcement by the city and potential visitors to Paris have a lot of flexibility in justifying the purpose of their stay if they wish to take advantage of the new lease option.

Combrisson indicates that visitors to Paris are catching on to the new rental option and are finding it economically advantageous, even for shorter stays.

Why use the mobility lease?

This mobility lease introduced by the government aims to return to the rental market housing that has remained vacant, or was used for vacation rentals which are now subject to tightening regulations in large cities.

Differences between a mobility lease and a vacation rental

Previously, if a tenant was signed to a lease for more than 6 months and the tenant actually lived on the premises, you had the risk that the tenant might request the reclassification of the lease to be his principle residence, with the disadvantages that this implies for the lessor (limited ability to evict for one). This risk of reclassification as a principal residence law is lifted by the fixed-term mobility lease.

In cities like Paris where vacation rental is heavily regulated, the mobility lease will also allow property owners to rent to customers visiting for periods of as little as 1 or 2 months without the need to apply for a change of zoning, or “commercialité” – an expensive and often impossible option to obtain.

Difference between a mobility lease and a classic furnished lease

The main difference between a traditional furnished lease and the mobility lease is the ability to set a fixed period of a few months for rental. Previously when you wanted to rent a furnished residence, the only solution was to sign a lease of one year, renewable automatically, and breakable only in limited circumstances (the owners desire to resume living in his property full time, or to sell the property mainly).

This all or nothing bind posed by the classic furnished lease largely cost a landlord the use of his property. The new law hopes to return vacant housing to the market, and attract owners who want to retain some use of their property.

Difference with a student lease

The classic furnished lease with a term of a one-year renewable, already had as an exception the ability to rent to students with a 9-month, non-renewable lease. It is an option and not an obligation when the tenant is a student.

The main difference of the mobility lease is to be able to choose the duration, but also to simplify the constraints by removing the security deposit in particular. Now if a student is coming to Paris for a 3-month internship, for example, they will not have to rent a property for 9 months.