Paris’ mobility lease: how to rent your Paris apartment on a medium-term basis26 June
The ELAN law, meaning Evolution of Housing and Digital Planning (or Évolution du Logement et Aménagement Numérique in French), aims to reform the real estate market, facilitate the construction of new housing and protect tenants. One of the main objectives of this law is to build more properties at a cheaper cost, meaning better homes at a more affordable price for buyers and tenants.
The mobility lease: what is it and what are the conditions?
Part of the ELAN law signed in summer 2018, the mobility lease stands as one of the pillars of the law. As Airbnb's short-term rentals are heavily regulated in Paris, it was only possible for homeowners to rent an apartment on a long-term basis, or they would need to apply for a short-term rental permit. A medium-term lease just wasn't possible. The mobility lease was created to fill this gap. This more flexible contract allows homeowners to rent out their property on a medium-term basis providing certain conditions are met:
- The duration of the lease must be between 1 and 10 months
- The contract can be renewed at any time providing it does not exceed the 10-month limit
- The property must be furnished
- This type of contract is for professionals undergoing training or travelling, students in higher education, interns or young professionals completing a VIE (French International Internship Programme, in French “Volontariat International en Entreprise” - more information here) or apprenticeship programme.
- This last condition will need to be proved via supportive documents and expressly mentioned in the contract.
What rules need to be followed for the Mobility Lease?
While the Mobility Lease allows for greater flexibility, it still needs to meet certain rules. Even though this type of contract means you can rent your home on a medium-term basis, it does not mean that rental prices can be as high as Airbnb-style rentals. Rental rates are capped just like they are on the long-term rental market and are based on property criteria such as exceptional views and high-end features. The law also makes sure that the landlord doesn’t suddenly raise the price of the rent without a reason. The ELAN therefore plans on sanctioning those who use this contract to get around the short-term rental restriction in the capital. As for all rentals, the income via the Mobility Lease will have to be legally declared.
Another important notion is the solidarity clause. There is no solidarity clause in a Mobility lease. This makes home sharing easier as each roommate has to pay their share of the rent directly to the landlord.
At the end of the contract, the tenant is not obliged to let the owner know that they are moving out as the lease terminates on a fixed date. However, if they wanted to leave the accommodation early, they would have to give the owner one month’s notice.
Though mobility lease contracts do not require tenants to pay a security deposit, the homeowner is still very well protected.
The property is covered by the free Visale guarantee. This covers any inconvenience the owner may face such as unpaid rentals and damage to the property. Visale directly compensates the owner and takes care of the rest of the procedures.
If you would like to know more about the Mobility Lease or any other alternative to rent your apartment in Paris on a medium-term basis and discover some of our properties for sale in Paris, please get in touch with Lucile Savattier, our Destination Adviser in Paris. She will also be available to introduce you to our partner who specialises in medium-term rentals in Paris.