These days, it is very tempting to see furnished tourist accommodation as a financially attractive investment.
This section looks at the need to ensure that furnished tourist accommodation is compatible with co-ownership regulations.
All co-owned properties
At first, you may think that we are only talking about flats that are subject to co-ownership regulations, but you should bear in mind that houses can also be.
When we see several houses served by a common access, we tend to think that we are in the presence of a housing estate. However, this is not always the case, and this group of houses may be a so-called horizontal co-ownership.
You need to read the co-ownership regulations
If the property in which you wish to invest is subject to co-ownership, the first thing to do is to read the co-ownership regulations carefully.
This is often a laborious exercise, with complex legal terms, old documents that are sometimes no longer really legible, and successive amendments! It can be a real headache, and that's not all!
When case law gets involved
The problem lies in the fact that furnished tourist accommodation has recently been deemed to be a commercial activity by the courts (Cour de cassation, 8 March 2018).
So if your co-ownership regulations do not expressly authorise you to carry on a commercial activity in your flat, renting it out on a short-term furnished basis will contravene the purpose of the building. You will not be immune if one of your neighbours, a co-owner, informs your property manager of the situation. The penalty could even be cancellation of the tenancy!
In conclusion, for a safe, long-term investment, it's essential to check the co-ownership regulations!
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