Paris hails success of tough rules for short-term lets on Airbnb

Just days before a summer heatwave was set to hit Paris, tourism chiefs at Paris city hall are basking in the glow of a successful crackdown on the online rental market. But that accomplishment has been tempered by less money from fines flowing into town hall coffers.

Since 2021, Paris city hall has raked in 6.5 million euros in fines. © Reuters - Charles Platiau

Since 2021, Paris city hall has raked in 6.5 million euros in fines which have been issued by the courts against Parisian landlords who have failed to comply with its regulations on seasonal lets – mainly through the Airbnb platform.

But due to more law-abiding landlords, the amount is falling.

Over the first seven months of 2023, city hall took in 535,000 euros from the 65 cases judged. The figure compares with 3.5 million euros in 2021 and 2.5 million in 2022, when a total of 370 cases were processed.

"The regulatory arsenal of the city is working, there are fewer infringements," said Paris city hall in a statement.

The town hall's legal chiefs said that the high figures in 2021 and 2022 were due to cases being suspended pending a ruling from the European Union.

At the same time, the average size of fines has risen: it was 15,000 euros in 2022. It now stands at 20,000 euros.

"The courts are more severe," said Ian Brossat, the Paris' deputy mayor whose remit includes housing.

"Judges now assume that those who cheat do so knowingly," he added.

A "multi-rental" owner from the 16th district of Paris even received the maximum fine of 50,000 euros, an unprecedented sanction, added Brossat.

Paris a été la première ville de France à réguler les locations Airbnb.

Nous continuerons à le faire, avant, pendant et après les JO.

Notre objectif : protéger nos logements et notre vie de quartier face à cette spéculation effrénée. pic.twitter.com/GgNd8n7CU9

— Ian Brossat (@IanBrossat) August 2, 2023

120 days a year

Airbnb use has grown dramatically in recent years across the world, with the service allowing users to find accommodation in a private home rather than a hotel.

But criticism has also increased alongside its growth. Residents in some towns and cities complain that entire buildings are being used for Airbnb short-term renting leading to changes in the character of an area sometimes forcing locals out and the closure of schools as the demographic alters.

In Paris, only main residences can be freely rented as furnished tourist accommodation, provided that they are declared to the town hall and only for up to 120 days per year. The rules are even tougher if the property is a second home.

In 2021, France's Court of Cassation – France's top court – backed Paris town hall over its rules. The judges said the town hall's regulations were in line with EU law.

Millions of visitors are expected to flood the city when Paris hosts the summer Olympics next year. The price of hotel rooms as well as short-term lets is expected to rocket during the Games which start on 26 July and last until 11 August.

• Read also: Airbnb fined 8 million euros over unregistered Paris rentals

(with AFP)