Holidays lettings in France - Tips and tricks by Valérie Augros

euros 10,000, for failure to comply with the 120 days duration if the accommodation let is the main residence; and up to euros 50,000 for failure to proceed with the change of use pursuant to article L.651-2 of the French Construction and Housing Code. Indeed, French municipalities that are now directly benefiting from this legal framework, and in particular the city of Paris, are keen to pursue indelicate lessors who are offering holiday lettings more than 120 days a year without any letting permit and/or without change of use of premises subject to holiday lettings. Such a legal framework was in addition approved by the European Court of Justice.5: This case concerned two lessors who offered studio apartments in Paris, for rent for short periods to a transient clientele via a website, repeatedly and without prior authorisation. They were prosecuted for breach of Article L.631-7 of the French Construction and Housing Code. The Cour de Cassation (highest court in France) on appeal formed by the lessors, decided to refer this matter to the European court of justice for a preliminary ruling. Indeed, the lessors who were held to pay, each, a fine of euros 15,000 considered that these provisions did not comply with European principles, and in particular with the provisions of the Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market. In its decision, the European Court of Justice considered in particular that the French legislation relating to prior authorisation and change of use applicable to holiday lettings, was not only justified by an overriding reason relating to the public interest consisting in combating the rental housing shortage but was also proportionate to the objective pursued. Referring to this European decision, French courts are now applying the above-mentioned scheme with severity against lessors who are unlawfully letting their accommodation on a short-term basis to tourists via Internet platforms.6 Further obligations were imposed in parallel to Internet platforms in addition to the lessors’ ones. Indeed, Internet platforms that are dedicated to advertise offers for holiday lettings must comply with various obligations. They have: 1. To inform clearly the lessor who wishes to advertise his accommodation for short-term lettings on the platform website, of his own obligations in application of articles L.324-1-1 of the tourism code and L.631-7 onwards of French Construction and Housing Code; 2. To obtain a sworn statement from the lessor that he fulfils with such rules and that he has made the requested declaration or authorisation to rent; 5 ECJ, 22 September 2020, C-724/18 & C-727/18. 6 E.g. Cass. Civ. 3, 18 Feb. 2021, n°17-26156. CA Paris, Pôle 1 Ch.2, 7 July 2022, n°21/20085: in this case, the lessor was for instance held liable to pay two fines, one of euros 40,000 for absence of change of use and one of €5,000 for non-declaration to the city of Paris.

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