Cracking Down, Cracking Up and Cracking the Case

French Property Insider
Volume VIII, Issue 27
July 8, 2010
Paris, France
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Bonjour French Property Insider Subscriber,

In yesterday's Parler Paris Nouvellettre®, I addressed the recent New York Times article regarding short-term rental apartments. The topic affects almost all of us French property investors -- as most of us set out to invest in a property that would yield the highest return -- at least to cover our carrying costs and at the same time afford usage of the property.

The laws affect the very foundation of our interests. If we can't acquire an income while the apartment is not in use, then it makes less sense to own it. And if the apartment is not in use except for only a few times a year, then it certainly doesn't satisfy Mayor Bertrand Delanoë's need to find housing. It's a "Catch 22" that has us all going in circles, including City Hall.

Before you read any further, please be sure to read yesterday's Parler Paris: "Cracking Down or Cracking Up?" at parlerparis/issues/pparis7-7-10.html

Then, read the New York Times article (see the link at the end of the Nouvellettre® and join me again for what I have to say here:

Since the article was published, there has been a few developments of note. First of all, the title of the article on the New York Times online edition has changed. I don't know if this is normal practice, but I found it odd. Also, the moment it was published, the comments flooded the online version and it reached the #1 status as most popular article on the Times online.

Now, look again and you will find no comments at all! I believe that could be because the author of the article was blasted for not having 'done his homework' and getting to the truth of the matter!...and rightfully so, as most of article was a rehash of old news.

When I first learned of the article, I forwarded it to my contact at the City Hall, who reported back that he's "just warned the Mayor's office in order to get an official response as soon as possible, but they don't seem to be very reactive, I fear..."

At least it's given them a 'nudge' to move a bit quicker. As I said in yesterday's Parler Paris -- there has been no official statement from the city to clarify the laws nor make any attempt to enforce them in any serious way. As we know, the only offenders have been those who were denounced by neighbors (about 25), but yesterday I also heard some very interesting 'gossip.' As it turns out, and let me repeat that this is gossip and not confirmed fact, but about half of those denounced were from one source -- a disgruntled employee of one of the oldest and most well established rental agencies, who in revenge, denounced some of their owners!

Now, wouldn't the press have a 'field day' with that?

I will repeat what I wrote in yesterday's Parler Paris:

No one should panic. No property owner should run to place their property on the market for sale! No renter should cancel their contract. No agency owner should fold their business. There will surely be a solution that allows us all to have the freedom, within reason, to provide this kind of housing, to satisfy the need of the tenants, and for the profiteer to be rightfully taxed on its earnings. I trust that Mayor Delanoë and the city officials will want to find a fair and just solution that will appease all of his constituents and at the same time accomplish his goals. There are lots of better ways than harassing individuals and he knows this.

A bientôt,

Copyright 2011, Adrian Leeds®
Adrian Leeds Group, LLC, www.adrianleeds.com