What does the “Loi Alur” imply?
The “Loi Alur” implemented by French housing minister Cécile Duflot affecting the housing market
Cécile Duflot’s so-called Loi Alur’s objective is to boost more and easier long-term rents. This law will have an impact on holiday rentals as well by making short-term furnished holiday lets more difficult in areas where property shortages are faced. Yet, not every law is put forward and some of them are due to come into force next year i.e. 2015 or in January, 2016. The “Loi Alur” implies the following reforms:
“Loi Alur” for renting
- Restrict the chargeable rent
- Restrain documents given by the tenant to the landlord
- Write a template for the lease and the inventory of fixtures
- Standardize unfurnished and furnished rentals
- Detail fees for letting agent
- Make housing market access easier and improve eviction process
- Extend the winter truce during which tenants cannot be evicted
“Loi Alur” for the lessors’ owners
- Protect the owners from unpaid risks and encourage renting
- Create a rent guarantee fund to cover unpaid rents
- Force the owners to undermine the work
- Improve the co-ownership management and warn about their deterioration
“Loi Alur” for the new construction
- Densify urban zone in order to construct where needs be
- Fight against urban spreading
- Favored local and intercommoned urbanism plan
- Accompany the light housing development
“Loi Alur” for property experts
- Clarify salary and the activity of the property management companies and the property agents’ activity
- Establish an in-house training obligation
Who are affected by the part of the law “Loi Alur” regarding short term lettings?
Large cities, such as Paris, will be the “Loi Alur” main target on French property law
In order to continue short-term rent, holiday rental owners may be forced to obtain two types of permissions. However people who rent out or exchange their main properties for a few weeks are not affected.
This law change will be applied in big cities, where the total residents’ number exceeds 200,000, Paris vicinity and 28 marginalised areas which deal with 50,000 residents. It is explained that these 28 towns and the property conditions rely on the mayors. They will decide whether or not apply to this law on French property.
The owners would need permission from the town council to change the property’s use from residential to commercial and from the co-ownership.
Furthermore, agents will have to obtain a signed statement from property owners that they are abiding by law. A heavy penalty fee of €25,000 will be charged for getting any authorisation.
