Airbnb, Paris Agree to Warnings on Illegal Rentals
French capital continues to crack down on tourist apartments that may be squeezing out residents
PARIS—Airbnb Inc. will start warning members who appear to be violating housing laws in the French capital, a new step by the home-sharing firm to crack down on tourist apartments that cities say are squeezing out local residents.
The California-based firm said Thursday that it has agreed with the city officials to launch a four-month pilot program in April. It will warn any host who is renting out his or her apartment for more than 120 days a year, or who appears to be renting out an apartment that is not his or her primary residence, that it may be a violation of city rules that can bring fines as high as €25,000 ($28,500).
While Airbnb won’t disclose the names of hosts that receive the warnings, a spokesman for the Paris mayor’s office said the city eventually wants to move toward a system that would prevent residents from renting outside legal limits if they cannot prove they have authorization.
“We’re moving step by step,” said Matthieu Lamarre, the mayor’s spokesman. “Eventually we will have to go further.”
The warnings mark a new step in Airbnb’s efforts to woo municipal governments worried about its impact. The company last year began striking deals with cities to pay tourist taxes, and last fall promised that it would start to work with them to resolve their concerns over affordable housing.
The issue has been a divisive one in cities ranging from New York to Berlin. But Paris, which is Airbnb’s largest single market with 60,000 listings, has been a case in point.
Paris officials say there are tens of thousands of tourist apartments in the city, with many operating illegally in dense tourist areas like the Marais. In a sweep of 2,000 apartments in that neighborhood in December, for instance, officials found roughly 100 tourist apartments that were being rented in violation of local law, the city says.
Rules in Paris allow apartment owners and some renters to sublet their primary residence for up to 120 days a year without any authorization. But anyone renting more for longer than that, or renting an apartment where they don't live, must get approval from the city. Such approval generally entails putting another apartment back into the long-term rental market to replace the one being used primarily for tourists.