The Airbnb Wars in Paris: for now, a truce

I’ve covered the Airbnb issue here previously, both my perspective as an entrepreneur and what Paris had been becoming more strict about.  On December 1st a “truce” will officially be in force as legislation first passed this summer comes into effect.  While the hotels have cheered this legislation, they are not quite done with their lobbying, as they may push for even more restrictive policies in 2018.

What’s changed

The city has mandated registration for every single property offered on Airbnb in Paris, which at last count, was north of 55,000 rooms (check out this mesmerising real-time map with the funny gap in the 19th/20th where Pere Lachaise is).  This registration, at the moment, is simply declarative, and requires no documentation/authorization from the city.  You go to the dedicated website, create an account and give them your name and contact information, and you’ll then receive a registration number, which needs to be displayed on your airbnb listing (there’s a field for it).  This will make it easier for city officials focused on compliance to find illegal listings (and monitor the registered ones).

The legislation also clarified that no full-time (365 day availability) airbnbs would be permitted without a formal change of classification of the property to “bed and breakfast” by the occupant (with all the paperwork and taxes that comes with).  Given that over 40% of the listings on Airbnb in Paris are “full-time” this should lead to a significant decrease in Airbnb’s inventory in the city:

Attention! Assurez-vous que votre situation vous permet de louer un meublé de tourisme avant de déposer votre déclaration. A Paris, la location de courte durée n’est possible que s’il s’agit de votre résidence principale (louée moins de 120 jours/an) ou s’il s’agit d’un local commercial. En cas d’infraction, vous vous exposez à une amende de 50 000 €.

For those still working on their French, this reminds people that should they wish to rent short-term (on a site like Airbnb or Booking) that they can only do so for 120 calendar days per year and that you can be subject to a fine of 50,000 euros for failing to comply.  Implied is also that your lease allows subletting (some do not) and that you either have written or at least oral permission from the owner to rent on sites like Airbnb.

Airbnb has added internal compliance by preventing hosts in the 1st-4th arrondissements from renting for more than 120 days, but Ian Brossat, who is Mayor Hidalgo’s senior advisor on housing was unimpressed, tweeting that that meant the law could be broken in 16 other arrondissements.

But, does this really change anything?

Assuredly, the city does not have the resources to audit the current 55,000+ listings on Airbnb and other platforms, but they have gotten very serious about this (other European examples include Berlin, which saw a 40% drop in inventory after passing a law aimed specifically at Airbnb, and Barcelona, which fined Airbnb 600,000€ last year over unlicensed properties), with the biggest concession being that Airbnb collects the occupancy tax on informal housing in Paris, and rather than pass that cost to its hosts in its most-used city, it has eaten that cost itself, paying the City of Paris more than 7,000,000€ per year.

Mayor Anne Hidalgo has been very intentional about her vision for the city, not just in splashy things like courting the Olympics, but in every day things like transport and design choices.  She doesn’t get her way all the time, but this is one of the issues in which she faces no real opposition: Parisians do not want their already difficult housing situation squeezed by too many short term rentals, and this will certainly return many of studios and studettes into the medium and long-term inventory of the city, and some of the larger properties into real options for families who want to live in the city.

There will be some who continue to risk having an unregistered listing or listing for more than 120 days, but with this official registration period (between October 1st and December 1st) and the push from Airbnb itself for hosts to comply, we are likely to see the vast majority of listings in Paris fall into line and the borderline/illegal ones go away.

What can still happen?

The hotels have openly stated that they are targeting a 90-day allowance rather than the 120 days now given, but given the extensive vacation that Parisians take, 120 days covers periods in the Summer and Winter in which residents can be gone and the city willingly grants that there should be allowance given to offset rent and/or make income for residents and permission for visitors to live “as a local” should they choose.  So, while there might be a push for further legislation, at the moment the hotels, like most of Paris, are focused on the holidays, and we are all enjoying our longest respite without a major attack.  That will allow those visiting Paris and using Airbnb to enjoy their stays particularly now, because if and when they return, those rooms may be off the market, literally.

Airbnb, having seen the writing on the wall for some time, is happily diversifying into fields that hotels cannot, recently adding experiences and restaurants (not yet in Paris, but here’s the link for NYC) to their offerings to travelers.  Their vision is to allow people to experience real life in those cities, not just rooms in a building, and there’s no way to restrict travelers from doing precisely that.

Photo by Nil Castellví on Unsplash

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