Airbnb Lettings: French Constitutional Council Upholds City of Paris Rules

You have a flat in Riom, and you think: “Why not let it on Airbnb for a few weeks a year to supplement my income?” A tempting idea, but it raises a question: can the town hall impose rules on me? The answer is yes, and the Constitutional Council confirmed this in a decision of 31 January 2019. This decision, which directly concerns short-term furnished tourist lettings, is a turning point for owners and platforms like Airbnb. What exactly does it say? And above all, what must you do to remain lawful?

The case pits the City of Paris against Airbnb France and its Irish parent company. Paris wanted to impose on lessors a prior declaration to the town hall and a limitation of the letting period to 120 days per year for principal residences. Airbnb contested these rules, arguing that they violated freedom of enterprise and free provision of services. The Constitutional Council, seised by the Court of Cassation, ruled: the rules are constitutional.

In practical terms, this means that local authorities can regulate seasonal lettings to combat housing shortages and rising rents. A decision that echoes situations I see every day in Chamalières or elsewhere: an owner who lets too often, neighbours who complain, a town hall that tightens the screws. So, how do you find your way?

The Facts: A Story Like Any Other

Picture the scene: in Paris, in the 2nd arrondissement, an owner puts his flat for let on Airbnb. He lets it 150 days a year. The Paris town hall, which has passed strict regulations, asks him to register and comply with the 120-day cap. The owner contests, and the platform Airbnb steps in. Airbnb France and its Irish parent company sue the City of Paris before the Paris High Court (tribunal de grande instance). Their argument: these rules are disproportionate and hinder freedom of enterprise (the right to manage one's property as one sees fit) and free provision of services (a European principle).

The court, perplexed, decides to raise a priority preliminary ruling on constitutionality (question prioritaire de constitutionnalité, QPC) with the Court of Cassation. The QPC allows a litigant to challenge an existing law if it infringes rights and freedoms guaranteed by the Constitution. The Court of Cassation refers the question to the Constitutional Council, which must decide whether the law is constitutional. The parties clash: on one side, Airbnb, supported by tourism professionals, pleads freedom. On the other, the City of Paris, backed by tenants' associations, defends the right to housing and regulation.

The Constitutional Council delivers its decision on 31 January 2019. It upholds the law, holding that the objectives of combating housing shortages and protecting the environment (fewer tourist lettings = less pressure on the market) are legitimate. The rules imposed are proportionate: prior declaration, 120-day limit for principal residences, and an obligation for platforms to transmit data. A blow for Airbnb, a victory for town halls.

The Reasoning of the Court — Dissected

The Constitutional Council examined the law in light of several constitutional principles: freedom of enterprise (Article 4 of the Declaration of the Rights of Man and of the Citizen), the right to property (Article 17), and freedom of contract. It held that these freedoms are not absolute: they may be limited for reasons of public interest, such as protecting the right to housing (provided for by the Preamble to the 1946 Constitution).

The reasoning is as follows: the legislature sought to remedy the excessive conversion of dwellings into furnished tourist lettings, which worsens the housing crisis in tight areas. The measures are appropriate: prior declaration allows the town hall to monitor, the 120-day cap prevents the principal residence from becoming a full-time commercial letting, and the obligation for platforms to transmit data ensures compliance with the rules. The Council also noted that the penalties (fines) are not disproportionate.

In other words, the freedom to let your property stops where the public interest begins. If you are an owner in Riom, you may let your principal residence up to 120 days per year without authorisation, but beyond that, you must change the use of the dwelling, which requires prior authorisation from the town hall. This confirms previous case law: local authorities have the power to regulate tourist lettings to protect the housing stock.

This decision is important because it provides a clear framework. Before, some platforms contested the validity of local regulations. Now, there is no doubt: the rules are constitutional. The lower courts must apply them.

What This Changes for You — in Practice

For landlord-owners: if you let your principal residence on Airbnb or Booking, you must comply with the 120-day cap in local authorities that have adopted it (such as Paris, Lyon, Bordeaux, or even Chamalières, which may adopt similar regulations). Beyond that, you must register the dwelling as a tourist furnished letting and comply with stricter rules (change of use). For example, an owner in Chamalières who lets his studio 180 days a year risks a fine of €50,000 if he has not made the declaration.

For tenants: you can report to the town hall an owner who abuses seasonal lettings. The decision strengthens your right to stable housing. If you are a tenant in Riom and your building is overrun with tourists, you can ask the town hall to check declarations.

For co-owners: the co-ownership regulations may prohibit short-term furnished lettings. Even if the law allows Airbnb, the co-ownership has the right to restrict. Check your regulations.

For purchasers: before buying a property to let on Airbnb, inform yourself about local regulations. A local authority may limit lettings to 120 days or require authorisation. Do not rely on sellers' promises.

If you are in this situation, you must: 1) register with the town hall if you let your principal residence for more than 120 days; 2) comply with the cap; 3) if you let a secondary residence, make a declaration of change of use (often with compensation: purchase of a commercial premises). Deadlines? The declaration is made online on the town hall's website. The amounts of fines can go up to €50,000 per dwelling.

Four Tips to Avoid This Type of Dispute

• Register your letting with the town hall: Before putting your property on Airbnb, check if your local authority requires prior declaration. In Paris, it is compulsory. Even if not, it is better to enquire to avoid a fine.
• Comply with the 120-day cap: Keep a precise calendar of your lettings. If you approach 120 days, stop. Use a management tool or an Excel spreadsheet. Exceeding, even unintentionally, can be costly.
• Check the co-ownership regulations: Some co-ownerships prohibit seasonal lettings. If you are in a co-ownership, read the regulations or ask the managing agent. An infringement can lead to legal action by neighbours.
• Consult a solicitor before investing: If you buy a property specifically to let on Airbnb, seek advice. A solicitor specialising in property law in Riom or Chamalières can help you verify feasibility and draft contracts.

Further Reading: Related Case Law and Developments

This decision is part of a line of case law favourable to the regulation of tourist lettings. For example, the Court of Cassation has already held, in a judgment of 12 September 2019 (No. 18-20.239), that co-ownership regulations may prohibit short-term furnished lettings, even if the law allows them. Similarly, the Council of State has upheld municipal orders limiting Airbnb lettings to 120 days (CE, 20 November 2020, No. 434292).

The trend is clear: the courts support local authorities in their fight against housing shortages. In the future, even stricter regulations can be expected, particularly concerning secondary residences. Some local authorities are considering a maximum quota of tourist furnished lettings per neighbourhood. For owners, this means that it is necessary to anticipate: not to rely on Airbnb as the sole income, to diversify investments.

This decision also impacts platforms: they must now transmit lessors' data to the town hall, on pain of a fine. This obligation has already been applied in Paris, where Airbnb had to pay €8 million for non-compliance.

Summary and Next Steps

FAQ:

• Can I let my flat in Riom on Airbnb without limit? No, if your local authority has adopted the 120-day cap. Check the town hall's website.
• What if I have already exceeded 120 days? Stop lettings immediately and register your property with the town hall. Consult a solicitor to regularise your situation and avoid the fine.
• What are the risks if I do not register? A fine of up to €50,000, and legal action by the town hall to stop the lettings.
• Can the co-ownership prohibit me from letting on Airbnb? Yes, if the regulations so provide. Read them carefully.
• Do I have to declare my Airbnb income? Yes, to the tax authorities. Platforms have transmitted your data to the tax office since 2020.

Checklist: 1) Check local regulations; 2) Register the dwelling with the town hall; 3) Limit lettings to 120 days/year; 4) Monitor co-ownership regulations; 5) Declare income.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) may save you months of proceedings — and often much more. Book an appointment →