Proposals for housing bill ALUR

«ATTENTION DANGER !
risk of dying from French SMEs and jobs can not be outsourced!»



ALUR The bill will introduce new regulations for seasonal furnished rental (also known tourist or short-term).

seasonal furnished rental professionals, grouped in the SPLM, they are calling for new rules and regulation regarding the activity, say:

« If the Government wanted to start better regulate and sustain the furnished rental, the current text has actually the seeds of the disappearance of Parisian and French SMEs in favor of offshore companies. The activity of tourist rental, essential to the attractiveness of France, is now run mainly by a network of small local service companies, sources of thousands of jobs can not be outsourced, promoting employability and economic development of our country.

The bill, if passed as is, will kill the French companies the benefit of foreign companies that do not pay tax in France. Seasonal furnished rentals will not disappear: they will unofficially, unreported, taxable and not by French companies. However, the housing problem will not be solved ... Access to housing is not favored and the public interest will not be preserved. »


The SPLM will incorporate all these French SMEs can not be relocated, calls on the Government and Parliament to amend three major points of the current text of the bill (voted in first reading in the National Assembly):

1) CONSIDER THE SECOND HOME LIKE A LOCAL FOR HOUSING (AS PRINCIPAL RESIDENCE) :

how to justify a second home, occupied several times a year by its owner or his family (eg 1-2 months), can not be considered a home? This would indeed no sense to change the use of a home that the owner uses occasionally.

Professionals therefore ask that the second home is considered a home: this is what it is in reality! The owner must be able to freely rent for short periods while he does not occupy. However, and in the interest of better regulation furnished rentals short, the exemption of the secondary residence of the change of use regime should cover, for owner, one apartment outside its Principal residence.

 If the first secondary residence was not exempt owners could keep their empty apartment circumvent the law by changing the location of their principal residence or rentals unofficially on foreign websites. Which would address, on the contrary, none of the problems of housing.

 Without this, the furnished holiday seasonal "official" die. Second homes will not return to the traditional rental market. They will be lost both for housing and for the development of the tourism economy. Place will be left to an underground market and undeclared. Is it the will of a Government and a Parliament of the left?

2) WAIVE THE AUTHORIZATION REQUIRED OF THE GENERAL ASSEMBLY OF CO-OWNERS WHO IS LEGALLY AND CRITICISM VA CREATE INSOLUBLE CONFLICTS INTERFERING WITH THE PROPERTY RIGHTS GUARANTEED BY THE CONSTITUTION AND THE LAW OF JULY 1965 ON 10 CONDOMINIUM.

Any approval given to a planning application, construction, or housing, is necessarily granted subject to the rights of third parties. Prior authorization of the owners regarding the use of change for the furnished rental unnecessarily alters this principle by introducing a major legal uncertainty.

How do we justify the co-owners 'advance judges' administrative authorization? What would happen if every building permit was subject to the discretion and prior agreement of the neighborhood! Private and partisan interests of everyone prevail over any consideration of general interest or right.
This authorization may be given or refused on the basis of subjective criteria or arbitrary, and therefore without the general meeting of owners will take into account the purpose of the building or the rules that govern the condominium. This will be a source of endless litigation.

Moreover, this provision is curiously limited to the sole hypothesis of seasonal furnished rental. Singularly, no such requirement is provided for conversion to commercial or for the exercise of a profession. Why book such treatment to a use that yet remains a residential use? It will be constitutionally difficult to justify:
- Furnished rentals is subject to more stringent requirements than the change of use to commercial use or for the performance of professional services,
- The co-owners may limit the right of use of the units without it being imposed by the destination of the building.

Finally, imposing the prior authorization of the condominium before a change of use is equivalent to prohibit any change of use. Is this what wish the Government and the Parliament?

3) PROTECT FRENCH SMEs AND THEIR FACE JOBS TO PLATFORM "OFFSHORE" SITES AND COLLABORATIVE THAT deconstruct MARKET (AS HAS BEEN THE CASE FOR HOTEL RESERVATION) PAY NO THEIR TAXES IN FRANCE AND DO NOT MEET THE REGULATIONS ON REAL ESTATE AGENCIES :

supervision of these sites is almost nonexistent in the text (despite some additions, insufficient in the first reading in the National Assembly) while French SMEs are applying new obligations and constraints. The SPLM does not understand why the Hoguet law applies to French companies and not to foreign companies that are, in part, the same trade.

If there were legitimate reasons for not applying the law Hoguet companies 'offshore', then do not apply to French companies so they do not have more constraints than foreign companies.

Without real control of foreign companies, one can only note that there are two weights, two measures, to the detriment of local companies and can not be relocated: the furnished rental professionals do not accept this blatant inequality, unfair and inexplicable!

Professionals are asking to impose on all actors of the seasonal furnished rental market the same rules to avoid creating distortion of competition today at the expense of professional and geographically settled in France for tax.

How to understand that we must respect the law when Hoguet is a French company and not when it is a foreign company? Without the obligation to respect all of the same laws, the market also escape well to domestic companies that the French regulations, these players are not residing legally and fiscally, France. Is that still wish that the Government and the Parliament? Push does one French SMEs to relocate?

NOTES

NOTE 1

DATA AND KEY FIGURES

The Union of Professionals Furnished Rental (SPLM) is the leading body representing professional furnished rental in Paris and in France by the number of members, the diversity of professions represented, for the conduct of its business and for quality assurance of services rendered.

Its objective is to promote the activity of the furnished rental, under the main or temporary residence (business or pleasure) tenants, to continuously improve the professionalism of its members and to engage constructively with all stakeholders, including authorities first to defend a furnished rental reasoned and quality.

To do this, the SPLM is to:

  • Develop an offer furnished in line with the housing policy of the Government and French local authorities (especially the City of Paris),
  • Save jobs Parisian and French actors,
  • Maintain the attractiveness of large cities, primarily Paris,
  • Promote virtuous actors performing a quality service,
  • Encourage regulation and moralization of the market adapted to empower all stakeholders,
  • Dialogue and work (new local or national regulations - framework law 2013) with public authorities and mayors of large French cities (including Paris City Hall) to benefit all.
Key figures
  • 20,000 let furnished apartments (Opinionway January 2011 - APUR November 2011)
  • 85% of owners have only one apartment (excluding primary residence), rented an average of 22 weeks per year
  • 64% of the apartments are occupied as a primary residence or secondary
  • 75% of owners who rent their apartment less than a year have the draft reoccupy the short or medium term.
  • Term rentals of furnished:
    o 50% = stay> 1 month
    o 34% = 1 week to 1 month
    o 16% <1 week for the vast majority of professional a minimum stay of 4 to 6 nights
  • Length of stay in the hotel:
    o Foreign nights 2.8 (2.4 in 1995) / French 1.9 nights (1.8 in 1995)
  • SPLM:
    o Members: 40
    o Profile: apartments Manager (and thus not just intermediaries who never see the customer and who do not know the apartments)
    o Number of apartments managed: 4000 (without duplicates)
    o Number of direct jobs: 400 (1 job for 10 managed apartments)

NOTE 2

SPLM OPINION ON THE FUTURE REGULATORY

I - QUESTIONS ON THE FUTURE REGULATORY

    • The SPLM is for regulation and control for the development of the furnished rental to avoid destabilizing the market by allowing individuals to freely trade the (compliance with local regulations, minimum quality) and no load (including tax).

    • The SPLM does not want the regulation removes existing local players to the detriment of international players who find the way around like they have found a way around the law Hoguet.

    • The SPLM demand that the regulation applies in the same manner by all and that all players are subject to the same duties and obligations. All collaborative sites should be consistent with the law Hoguet, verify the origin of the apartments, be held responsible for illegal locations, collect and remit the tax.

    • Furnished rental professionals are the best allies of the regulatory authorities because they guarantee quality of service, transparency, responsible commitments, control apartments and stays ...

  • The law must better regulate the market by owners (market favored by the emergence of national and especially international collaborative sites) to avoid that the individual gradually substitute for true professionals without constraints, without charges and without taxation faced by professionals: - If a owner must be able to rent their principal residence during his absence, the law should regulate this possibility that this does not become a true recurring business. - Limit to two months per year the maximum rental from particular to particular. Otherwise it is unfair competition against them professionals who are subjected to loads, taxes and safety rules is not particular. - Beyond two months, impose the same constraints and professionals. - On this point, the SPLM joined hoteliers (UMIH).
II - THINK THAT THE GOVERNMENT PROPOSALS SPLM?

The bill, in its current version seems more rational to the following points:
- The text does not impose a single national system: it seems indeed impossible to provide a precise and strict national system for varied situations on French territory. It opens several regulatory options by various possibilities (relaxation compared to the current text), criteria and negotiation.
- However note that this does not leave a free hand to communities that would prohibit short-term rentals in their city and / or in their neighborhoods tourist said.
- The text shows little change in current tools: the text was drawn in particular in consultation with the City of Paris. The Government has not yet taken an idea of the Mayor of Paris to establish a specific lease time-limited (but this could occur as application criteria).

Caution also there to freedom that could take authorities to impose minimum periods too restrictive. If the subject became topical, we would ask that the terms of a minimum be provided at national level in the authorization criteria.

Setting a minimum duration of furnished apartments (30, 60 or 90 days): Beware the false good idea! - The minimum duration is not a regulating tool because we must not confuse the minimum term in the contract (the law can impose) and length of stay. These are two different concepts that make regulation by the ineffective term.
Indeed, regardless of the duration required by law, the tenant can leave whenever he wants.
"Duration of the contract" is different from the "residence time": the time is circumvented in practice. When a tenant rents an empty apartment, he knows he will have a 3-year contract. But he can leave whenever he wants with the consent of his landlord and respect of notice (usually 1 or 3 months). The owner can rebook when he left.
- Regulation by the duration would be ineffective because it would encourage the tenant to declare a tenure greater than its actual need: the length expressed in a lease is the vision that the tenant's need at the time of entry into the premises . This need may change during the lease. Therefore, pursuant to Article 1134 of the Civil Code, the parties can terminate the lease at their convenience, the tenant can terminate unilaterally with one month's notice, if said his main residence.
Once the lease term may be challenged by the parties, a regulation on this criterion would encourage the tenant to accept longer than his need to access an apartment which he was not entitled.
- There is talk of imposing a minimum period of 7 days (or 30 days) instead of the current 12 months (9 months if student): this is a false good idea.
The minimum duration of 30 days or 7 days will fail to meet the needs of hoteliers. The average length of stays in Paris in hotels was 2.8 nights for foreign and 1.9 per night for a French. This period is relatively stable for 15 years (1995: 2.4 nights abroad = / French = 1.8 nights).
The difference between 2.8 nights (average length of stay in a hotel) and 7 nights (term that some might want to create) is too important for that hoteliers are taking advantage by seeing their average lie all.
- Cities that have experienced a regulation by the time the abandoned because it is ineffective given the possibility to get around: as such, the example of the City of New York is revealing. The current regulation imposes a ban on rentals under 30 days. This prohibition has nothing limited rentals for proof responses traditionally made by New York actors of the furnished apartment offering a 30 day contract for rental of 15 days. Given the failure of a control easily circumvented, the city of New York is amending its legislation: the new system would provide a minimum stay of 2 days and the granting of a temporary license whose number would be limited by building to avoid a specialization thereof.
-An imposed minimum leave many unsatisfied needs and therefore would encourage illegal unreported solutions.People today use the furnished apartment for a stay of 6 days, might, if the law requires a minimum stay, go to the hotel for 6 nights, because too much ... They do not come in Paris or go on an undeclared market.

This will be a handicap for the attractiveness of Paris (essential post financial revenue (tax, consumption ...) that also lack of hotel rooms by 7000 relative to demand, for the organization of large trade shows, which are increasingly in competition with other major European capitals, tourist attendance for foreigners coming from far away.
- Tourist rental does not seem concerned with the regulation of rents and fees (which only applies to leases Act 1989).

Attention to the final confirmation of this. It should not be that hire professionals suffer a double penalty: that of competition from offshore platforms that the Government does not want to coach at this stage, that a limitation of their operating capacity, development and creation jobs.

However, the SPLM deplores a number of major shortcomings :- The many proposals that the SPLM has made the Ministry of Housing (see Annex 3) have not been, for many of them, times or even studied. The SPLM can only regret this lack, especially regarding the distinction between "small" and multi-owner, limiting the number of apartments to rent furnished short term, the obligation of professional charter, accountability actors commercial (including offshore platforms) and owners. The SPLM demand that the government and parliament take into account the proposals of the SPLM to better regulate the furnished short-term rental.
- The status of the furnished rental professionals is not specified. The French short term furnished rental activity is based on the number, development and quality of services of these professionals who create jobs can not be outsourced. Moreover, these professionals are the guarantee of a level of quality, honesty and tranquility that no collaborative site will not offer. In this sense, professionals are the best allies of the government and authorities in the regulation of short-term rent (this is for example the only ones implemented voluntarily charters of quality and tranquility, professional liability ...
The SPLM demand that the Government clarifies the status of "exploiting furnished" by amendment (governmental or parliamentary) recognizing official status to these actors (like what the tax administration already) then specifying the terms thereafter (ROE training,..).

Supervision of collaborative sites is non-existent in the current text: the Government is yet abandoned, citing European legislation and considering that these sites do not fall within the scope of the law Hoguet. If the SPLM considers sure that these websites have their place in the furnished rental activity of short duration, it is provided that they have the same constraints as local players, they respect the obligations fair competition, taxation and minimum quality of bids and the service rendered. This is unfortunately not the case.
The SPLM demand that the additions to the text discussed in Parliament include strengthening tax obligations, particularly hosting sites (taxation in France where the activity is carried on French territory) and professional (eg impose a duty of RCP to all professional actors, and individuals that make an almost professional activity).

- The criteria for the authorization of the furnished short-term rental are not finally fixed today. These criteria, depending on the choice that will make each community will be critical to the business development and sustainability of local jobs attached to it.
The SPLM demand that professional furnished rentals, with headquarters in France, are closely involved as partners in setting these criteria at national level (in the frames of legislation and implementing legislation that s 'to follow) and local (with each competent authority on this subject).

NOTE 3

PROPOSALS OF SPLM

I –PROMOTING BEST INTERPRETATION OF THE EXISTING LAW


a) Proposals on the existing legislation concerning the furnished rental

Article L 631-7 of the Code of Construction and Housing does not say enough what a housing ("... all housing categories and notes ..."). This lack is source of misunderstanding, particularly for small landowners, and application many difficulties.

Without completely changing the wording of Article L 631-7 of the Code of Construction and Housing, the SPLM proposes: - Specify the contents by amending Article R 111-1-1 of the Code of Construction and housing completing the current definition of housing (mainly defined by the nature of parts) by its use,
- Complete the drafting of Article L 632-1 by introducing the distinction between small and multi-owner (cf.ci above) as it existed in the legislation before the 2005 reform.

Drafting of L 632-1 prior to 19 January 2005
Anyone who rents a furnished apartment with a landlord renting usually more than four furnished accommodations, the rental comes with or without secondary benefits, is entitled to establish a written contract for a period of one year from provided that the rented accommodation is the principal residence. At the expiration of this contract, the lease is automatically renewed for one year subject to the following provisions ...
b) Definition of furnished accommodation

The SPLM believes it necessary to clarify the concept of housing furnished by introducing a definition that can be used as reference to any new regulation.

The SPLM offers to resume, as the report Massin Laporte (February 2013), the definition that was adopted by the members of the TNC at its meeting of 7 January 2009 (except for the last word in ie  «normal»): «Furnished accommodation means a housing whose pieces are lined with movable elements, equipment and essential utensils provided in sufficient quantity to allow the tenant to use and to live there.»

II - IMPROVING THE REGULATION OF FURNISHED RENTAL BY EVOLUTION OF LAW AND APPLICATION MORE APPROPRIATE

SPLM The proposals are the main objectives of:
  • Focus any new regulations on tense areas rentals
  • Keep the change of use with compensation for the multi-owner
  • Derogate from the use of change for smallholders resulting in a "personal and temporary authorization" rental
  • Restrict Permission to a percentage of apartments and condominiums (changes made by New York)
  • Empower owners and professionals in market regulation (changes made by New York).
a) Proposals for regulating furnished rentals

- Regulate the number of apartments available for rent furnished, distinguishing, in regulation, small owners and multi-owner.

- Grant personal licenses and temporaires1 smallholders and allow the compensation mechanism for multi-owner. The authorization may be granted for a period of 3 years, renewable, and without compensation (longer license - 5 years renewable - and cheaper if request made on behalf of the owner by a professional guarantor of good practices).

Advantages of personal and temporary authorization controlled by professionals (owners) on behalf of the Town Halls

- Allow to define a volume of apartments in acceptable furnished flat for the Town Councils, taking into account the needs related to the attractiveness of cities and their local economy. The current system, based on the nature of the occupation made by the tenant - primary or temporary residence - do not allow it. Indeed, the strengthening of control on the criterion of the use to encourage an increase in residence statements for the tenant for all that is not strictly tourist stay. - Strengthen neighborhood quality and tranquility in the condominium conditioning the renewal of the authorization in compliance with good practices of furnished rentals. - Limit the use of means of administration for the issuance and control of permissions:
  • linking personal authorization to Mayor declaration requirement under the tourism code (Article L 324-1-1),
  • empowering professionals on the application of best practices which would focus controls on some players, not tens of thousands of individuals
  • fmaking ex-post controls, especially at the professional to control more apartments.


- Submit personal and temporary authorizations:
  • Liable to pay a annual fee from each hall
  • Compliance with best practices defined in the charters of quality and tranquility. The SPLM has implemented such charters, which are subject to consultation with the City councils and organizations representing owners and building trustees
  • On the possibility for third parties to contact 24h / 24 and 7/7 call center to issue a complaint about the neighborhood, the call center will then charging to notify the responsible for leasing platform.

- Condition the renewal of authorizations to the respect of good practices and the absence of notable incidents within the building. To facilitate the work of municipal teams on the keeping and checking statements, professionals furnished rental referenced by the City Council will act "auxiliary" by grouping or by supporting requests from the owners before transmitting At the mayor.

-Limit the number of apartments for temporary accommodation by building: this limitation, at a level to be defined, would not disrupt the vocation and the vicinity of the buildings concerned while ensuring an adequate supply in the main districts of the temporary rental.

- Require owners and players in the furnished rental professionalization charters:
  • Quality Charter (on the model of the Convention of SPLM / Clévacances) with obligation for owners to provision of quality-controlled apartments
  • Quietude charter obligation for owners / tenants and stakeholders in the temporary rental (to) respect (er) rules of conduct and, if necessary, in the building the condominium rules (while maintaining the obligation not prior authorization of the condominium)
  • Ethics charter obliging actors temporary rental and owners of real estate regulations compliance, tax and local.

-Require owners working in direct training on the duties and rights of the lessor and on good practices of furnished rentals.

Set a minimum of furnished rental period (30, 60 or 90 days): Beware the false good idea!
-Regulation by the duration would be ineffective because it would encourage the tenant to declare a tenure greater than its actual need: the length expressed in a lease is the vision that the tenant's need at the time of entry into the premises . This need may change during the lease. Therefore, pursuant to Article 1134 of the Civil Code, the parties may terminate the lease whenever they semble1, the tenant can terminate unilaterally with one month's notice, if said his main residence.
Once the lease term may be challenged by the parties, a regulation on this criterion would encourage the tenant to accept longer than his need to access an apartment which he was not entitled.

- Cities that have experienced a regulation by the time the abandoned because it is ineffective given the possibility to get around: as such, the example of the City of New York is revealing. The current regulation imposes a ban on rentals under 30 days. This prohibition has nothing limited rentals for proof responses traditionally made by New York actors of the furnished apartment offering a 30 day contract for rental of 15 days. Given the failure of a control easily circumvented, the city of New York is amending its legislation: the new system would provide a minimum stay of 2 days and the granting of a temporary license whose number would be limited by building to avoid a specialization thereof.

b) Proposals for the empowerment of professional actors
- Require professional non Hoguet law the obligation of a "professional liability" insurance.
- Require professional (and owners working in direct) the obligation to provide access to any third party to a call center to collect any complaints from neighbors and to warn the responsible for leasing platform. To ensure the implementation of this call center professionals propose to finance them.
- Impose, including Internet platforms offshore, respect for real estate, tax and local regulations.

c) Proposals for the accountability of landlords
- Impose a tax compensation to all owners (small and multi-owner) making furnished rentals: see below.
- Mandating the comprehensive home insurance for furnished rentals.
- For owners working in direct, define a status of the owner lessor making the furnished rental with compulsory training provided by professional organizations (SPLM FNAIM, Clévacances ...). This training obligation would be one of the criteria for issuing personal authorization.

d)Proposals for better tax the furnished rental and improve housing in the cities of over 200 000
-Impose the payment of the tourist tax to all owners: the city tax is now paid unequally, including the owners do not pass by a professional.

Define situations in terms of local taxation and national
  • Redefining panorama applicable taxes (tax assessed companies Contribution Value Added Enterprises, local tax) to overcome the current complexity of taxes due, paid or not, in which the actors of the furnished rental, and let alone the owners, know what is owed and what is not,
  • Harmonize the taxation of furnished rentals with the taxation of property income and remove the standard allowance increased for furnished accommodation in City Hall declared in tense areas.
-Create a contribution to the commitment of temporary furnished apartments for social housing: this social contribution payable by the owner (smallholders: all or part of the amount of the annual fee linked to the personal authorization, multi-owner: hand the amount of compensation), would contribute to the renovation of substandard housing or to finance social housing in tense areas.

Note 4

APPROVAL OF THE GENERAL MEETING OF CO-OWNERS

The current text, voted in first reading in the National Assembly, requires the owner who wishes to obtain a change of use prior to the processing of the application the approval of the general meeting of owners 

I - Furnished rentals of professionals state that this provision, if adopted as it stands, would mean the death of their activity, thousands of local jobs and dozens of French SMEs and non-relocatable actively participating in the economic development of France and its tourist appeal.

While the President of the Republic himself has just said that tourism was becoming a "great national cause", this amendment is in total contradiction with this strategy, having the effect of depriving France and its main tourist attractions that represent the major cities - Paris first - a quality tourism revenue generating strong development.

Moreover, this provision - the constitutionality of which remains to be demonstrated in terms of respect of the right of property - is totally contradictory to the Government project because it prohibits « de facto » what the government allows text "de jure": in fact, no general meeting of owners, with very few exceptions, only allow the furnished holiday letting, even if the regulation of condominium permits, dice during that judges are made co-owners of a building procedure with discretion.

This provision will lead to a de facto ban of all rentals furnished short term while the Government planned reform regulating this activity (with 3 possible schemes: free regime, change of use, without authorization temporary change of use).

While the national economic situation is still worrying and that the tourist season has been poor this summer, the Government and Parliament can they do without:
  • Local employment services dedicated to the reception of tourists and maintenance of apartments and buildings,
  • French PMEs participating in the creation of economic wealth,
  • French or international tourists contributing, through their spending, the maintenance of businesses and local jobs
  • Tax revenues paid by these French SMEs contrary to international platforms not domiciled in France?
Moreover, this obligation becomes almost impossible to obtain, it is the door open for furnished rentals undeclared, without any guarantee or protection of the tenant. Is it really this direct and particularly harmful result that Parliament and the government want?

It's better regulation based on verifiable and enforceable rules that ban fact that does not solve the problem but will move towards an official market unofficial market.

Professional asking parliamentarians and the Government to waive this provision deadly legally fragile, economically unjust, socially inefficient and politically useless. This renunciation is the only possible solution. If the Government and Parliament imagined alternatives such as: - limit the approval of the general meeting only to buildings where necessary, - excluding the second home of this authorization (1 apartment, excluding primary residence), the SPLM is available to them to explain the position of professionals based on a comprehensive legal analysis of the issue and a working knowledge of the subject. In any event, this renunciation would better regulate the furnished rental while maintaining the economic, social and essential tourist to France. WHY THIS PROVISION IS NOT THE SOLUTION - This provision gives owners discretion in the context of a construction law procedure. This obligation first create a contradiction in regulation and intolerable discrimination, professionals (doctors, lawyers ...) are being submitted today or in the future bill.

In addition and in comparison: what would happen if every building permit on each field was subject to the discretion and prior agreement of the neighborhood ...? Private interests and supporters of each course prevail over any consideration of general interest or right, and obviously some projects would emerge.
This provision will prevent any de facto change of use for the term furnished rental and for other needs (office, medical or legal professional ...).

- If the condominium regulations do not prohibit the furnished rental, so it is a "private law" promoting special interests (in one way or another - favorable or unfavorable vote -) which would govern a community while law passed by Parliament, defending the general interest, maintain the ability to exercise the furnished rental. Why such a contradiction, to the detriment of the law?

- If nuisance (neighborhood disorder), the furnished rental activity can already be prohibited by the trustee of owners: this provision and therefore contributes nothing is redundant with existing measure.

- Finally, one can legitimately question the constitutionality of such a measure that violates literally right of the property, yet protected by the Constitution. A resort, more than likely, before the Constitutional Council on this provision if confirmed, would be a great opportunity to be heard and to give rise to a favorable decision in respect of property rights.

The SPLM shall make available to interested legal analyzes on this topic.

NOTE 5

CE543 AMENDMENT (former) and 1359 (new)

Amendment CE543 - withdrawn Commission of Economic Affairs of the National Assembly - also required the companies and transactional sites, in addition to those already submitted, regulations on the change of use in case of furnished holiday letting. This amendment allowed as a first step, to submit to the same obligations transactional websites - including platforms "offshore" - and professionals settled in France.

The 1359 amendment tabled by the Government and adopted in the first reading in the National Assembly, has taken part in the spirit of the amendment CE543: "Any person who assists against remuneration, for an activity or through setting providing a digital platform in the renting of housing, the landlord informs reporting obligations or prior authorization provided and gets him, before leasing the property, a declaration of honor certifying compliance with these obligations. "

1359 This amendment is a "minimum". There is no guarantee indeed no equal among French structures and platforms "offshore" who "declare" their ads relate the vast majority of main homes ... why the amendment does not apply in 1359.
Plus globalement, la réglementation actuelle comme la probable future réglementation est/serait discriminatoires : en effet, les PME françaises, professionnels de la location meublée, sont aujourd’hui – et seraient demain – soumises à davantage de règles et obligations réglementaires que les sites transactionnels et les plateformes « offshores » exerçant une activité sur ce marché, en toute liberté et sans contrainte particulière. Deux poids, deux mesures, et ce détriment d’entreprises nationales ou locales, non délocalisables : les professionnels de la location meublée n’acceptent pas cette inégalité flagrante et inexplicable !


Professionals furnished rental asking parliamentarians and the Government to reintroduce a minimum amendment CE543, in another form as required. They also ask the government to require all market participants to the tourist furnished rental the same rules to avoid creating distortion of competition today at the expense of professional and geographically settled in France for tax.

Offshore platforms established 4 main problems:
  • They outsource part of tourism and its turnover. They thus eliminate the jobs generated by local actors.
  • They do not pay, or very little tax in France and legal status makes them dependent either - to their country of origin and not of the French Courts
    - Their country of origin and not of the French Courts
  • They promote the creation of sometimes illegal activities (by allowing the tenant to sublease without the consent of the lessor), almost always undeclared and therefore untaxed.
  • They circumvent French law (law Hoguet particular) which accentuates the unfair competition they have on the market. For example: for intermediation of transactions with rent collection, AIRB & B has neither map nor T G card and therefore operates with less constraint than local players.
Why offshoring of service activities allow foreign companies to have fewer constraints than the French companies operating on French territory? furnished rentals professionals demand that the regulation applies in the same manner by all and that all players are subject to the same duties and obligations.

PROPOSED REGULATION


1) To perfect the law Hoguet to offshore platforms if they act as an intermediary
The French professional furnished rental are subjected to the law Hoguet when they act as an intermediary. The real estate agent is to link a tenant and a landlord and facilitate the conclusion of a rental. For this, the intermediary must have: - T map to search for tenants - a G card for collecting rent. But the majority of offshore platforms are real estate intermediaries, except that some of them are pure advertisers (announcement broadcast allowing the tenant to enter into direct contact with the owner, without the advertiser facilitates or intervened in negotiations between the parties). All sites that act to link a tenant and a landlord in return for a commission, and that cash rents, should therefore be subject to the law Hoguet. In addition, it difficult to understand that this applies to French companies but not to foreign companies. If it appeared impossible to submit foreign firms to Hoguet law would require, in the interests of equality and respect for competition, provide French companies from the constraints of law Hoguet order to restore the conditions of competition loyal and maintain these activities in France.

2)Require platforms compliance with laws by the owner lessor 
French professionals ensure that: - the owners respect the applicable laws and regulations - a tenant of a flat subject to the law of 6 July 1989 can not rent the apartment without the consent of the lessor and without that rents sublease are above the main rent.
On this point, the courts are regularly shown great severity against debtors middle of a duty to advise strengthened on the occasion of transactions through them.
This severity should also be applicable to offshore platforms. That's not the case today. On these platforms, many apartments are offered by the tenants themselves, without the lessor has given its consent and without the platform has verified that the sublease rent does not exceed the lease rent. The owners do not pay the tourist tax and real estate diagnoses supposed to inform consumers about the energy costs of housing are never displayed.

Systematically, the platforms will not be responsible by writing in their general conditions "that the owner is responsible for compliance with laws and regulations." A French professional, if subjected to the law Hoguet or is operator of furnished premises, does not, of course.

The law must promote fair competition between French professionals and offshore platforms. It should not, except to cause the disappearance of local players, new entrants escape:

- The law Hoguet
- The constraints of duty counsel
- With promoting consumer protection.
The greatest injustice and iniquity would be that these international platforms tomorrow circumvent any new regulations under cover of impunity linked to their status as foreign company.

3)Protect the tenant governing the activity platforms by mandatory criteria of level of service and quality Consumer protection, which becomes tenant, must be the same when he buys a stay on the site of a French professional or an offshore platform. If the platforms were subject to the law Hoguet, they would be subject to a minimum level of service and quality to guarantee their clients. But as they have now found a way to escape the law Hoguet, professional furnished rentals require that additions to the text discussed in Parliament include strengthening of requirements for platforms to put all players on a strict footing.

Besides the tax obligations (tax in France when the activity is carried on French territory), the platform should have the following professional obligations, whose primary objective is to protect the tenant against any irregularities, abuse and failure:
  • Systematically visit all the apartments to check the veracity of the content of the ads they broadcast (at least 1 time / year for platforms acting as real estate agent)
  • Ensure the rights to rent the advertiser verifying ownership of the property by the lessor
  • Must have a professional liability (RCP) for their activity (obligation should be imposed on individuals who make a furnished apartment near work)
  • Make available to the administration, if necessary, paper file including office, proof of ownership, various commitments
  • Accept the regulations on behalf of the owners on a French account, accessible to the tax authorities
  • Have the owner of the signed agreement to pay the tourist tax or the cash on behalf of the administration in the case of rent collection for the account owner
  • Keep records of mandates
  • To provide condominiums with a call number in case of problems during the rental