Paris authority wins Airbnb lawsuit over rental restrictions

Paris authorities are rejoicing after winning a lawsuit against Airbnb and other short-term vacation rental companies that they hope will boost the city’s real estate market.

The French Court of Cassation ruled that regulations designed to counter the impact of Airbnb and other short-term rental sites on the local real estate market were “proportionate” and in line with EU law. The decision could now prompt other European cities to take similar measures.

“Total victory for the City of Paris against Airbnb and fraudsters who illegally rent their property,” the deputy mayor Ian Brossat, in charge of housing, wrote on Twitter, saying that this ended five years of legal battles.

Europe’s highest court, the European Court of Justice, also ruled in favor of Paris last September, but asked French courts to assess some of the specifics of the regulations.

The city is grappling with a housing shortage problem and has attempted to address this issue by making tax registration mandatory for apartment owners. They also introduced a rule limiting the time that owners could rent out their primary residence to 120 days per year.

If the rented property is an individual’s second home, more severe restrictions are also in place. Landlords wishing to rent a furnished home for less than a year to vacationers must now apply to local authorities for permission to change the registered use of the property.

Paris authorities have won a lawsuit against Airbnb and other short-term rental companies they say will prevent people from illegally renting their homes and harming the local real estate market. / AFP

Paris authorities have won a lawsuit against Airbnb and other short-term rental companies they say will prevent people from illegally renting their homes and harming the local real estate market. / AFP

They are then required to purchase a commercial property of equivalent or greater size and convert it into housing as compensation, an expensive and time-consuming task. All of these, including the compensation mechanism, were ruled legal on Thursday.

The ruling means the city will be able to resume legal actions against 420 tenants who were fined an average of $ 61,000 each for breaking the rules. Paris has been at the forefront of efforts by many European cities to limit Airbnb’s effect on the rental market.

Before the coronavirus pandemic, many property owners in desirable areas chose to rent their space short-term to tourists rather than locals, while high profits were identified as a key factor in the rise in house prices. ‘real estate.

Source (s): AFP

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