The mobility lease: how to rent your apartment on a medium-term contract in Paris25 October
Short-term rental is now extremely restricted in Paris. It is only possible to rent out your apartment on a long-term contract unless you have permission to rent it out via Airbnb and other short-term websites.
Aiming to bridge the gap between long-term and short-term rentals, the new Mobility Lease was introduced last year to make it easier for professionals to obtain accommodation on a medium-term contract.
In order to benefit from this type of lease, there are a number of conditions which need to be met:
- The tenant should be a professional on a medium-term move. It applies to professional training, graduate studies, apprenticeship contracts, internships, voluntary engagements in the context of a civic service (VIE contracts), professional changes or temporary assignments in the context of professional activity.
- The apartment has been rented out furnished.
- The contract can be for a duration of one to ten months. The contract can also be modified by an amendment, providing that the total duration of the rental doesn’t exceed 10 months. At the end of the contract, the tenant has no obligation to let the owner know they are moving out as the contract 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.
Rules that apply
- Rental rates are capped just like they are on the long-term rental market, which means that you will not be able to apply Airbnb-like rentals for short-term leases. The rent provided in the lease cannot be revised and rental charges must be fixed.
- However, the owner will be able to adapt the price of their property if it has special features such as a washing machine, a balcony, a terrace or exceptional views.
- The contract has to mention explicitly the professional situation of the tenant and why he is allowed to benefit from such a lease.
- There is no solidarity clause. This makes home-sharing easier as each roommate has to pay their part of the rental.
Benefits for homeowners
- They finally benefit from a flexible type of contract that really corresponds to the needs of tenants whilst bypassing the need to register with the town hall or make a change in the use of the lease.
- Whilst these leases do not have a security deposit, Visale protection fills the gap. It is free and covers any inconvenience the owner may face such as unpaid rentals and damage to the apartment. The owner will be paid back directly after the declaration and the Visale organisation will sue the tenant on behalf of the homeowner.
As you may have guessed, one of the objectives of the mobility lease is to return rental properties which has been left vacant in major urban areas where regulations on short-term rentals have tightened.
In addition to this new lease, there are a handful of other medium-term leases such as the secondary residence lease. If you would like to find out more, please get in touch.