Change of use and commerciality
Benefit from our expertise and let us support you in your efforts to change usage and seek compensation.
Regulation
Short-Term Rentals: Strict Regulations in Paris and Lyon
Short-term rentals, particularly through platforms like Airbnb, are strictly regulated in Paris and Lyon to protect the residential housing stock and ensure access to housing.
In Paris, property owners must declare their activity and obtain a registration number. Renting out a primary residence is limited to 120 nights per year. For secondary residences, additional requirements apply, including compensation and a formal change of use and purpose for the property.
In Lyon, similar rules apply, including the 120-night limit for primary residences and prior authorization for secondary residences in high-demand areas, such as Vieux Lyon. A regulatory map identifies zones where stricter rules are enforced.
Platforms like Airbnb are required in both cities to block listings exceeding the 120-day limit for unauthorized properties. Non-compliance with these rules results in significant penalties.
These regulations aim to mitigate the impact of short-term rentals on the housing market but add complexity for property owners.
Concierge services and intermediaries are also required to comply with legislative rules for short-term and tourist rentals. The Le Meur Law, adopted in November 2024, strengthens the regulation of tourist rentals in France, introducing fines for intermediaries and concierge services in case of violations.


Change of use, commerciality and compensation
Change of Use Regulations in France: Safeguarding Housing Stock in Urban Areas
The change of use framework is a regulatory measure aimed at preserving housing stock in high-demand urban areas, particularly in large cities like Paris and Lyon. Governed by Article L.631-7 of the French Construction and Housing Code (CCH), it strictly regulates the transformation of residential properties into commercial, tourist, or professional use, with complex compensation rules.
What is the Change of Use?
The change of use refers to modifying the original purpose of a residential property for another function, such as offices, shops, or short-term rentals. It primarily applies to cities with more than 200,000 inhabitants and the Île-de-France departments. This modification requires prior authorization from the local municipality.
For short-term furnished rentals, this regulation aims to limit the impact of the surge in short-term rental listings (Airbnb, etc.) on the housing market and the increase in property prices.
The Principle of Compensation
To obtain authorization for a change of use, the property owner must compensate for the loss of housing by creating an equivalent amount of housing space in the same area. Two main forms of compensation exist:
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Restoring a non-residential space (office, shop, etc.) to residential use.
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Purchasing "commercial rights," which involve converting a commercial property into residential use.
This compensation is subject to strict rules: the spaces must be equivalent in quality, size, and location. In Paris, for example, specific coefficients apply in certain neighborhoods. In hyper-reinforced areas, a compensation ratio of 3 square meters of housing is required for every 1 square meter converted to tourist use.
When is the Change of Use Mandatory?
A change of use is required in three main cases:
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Renting out a primary residence as a furnished tourist rental for more than 120 days per year.
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Any tourist rental in a secondary residence.
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Converting a residential property into offices or commercial premises.
Sanctions for Non-Compliance
Non-compliance with change of use regulations is heavily penalized. Violators risk:
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A fine of up to €50,000.
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An obligation to restore the premises to their original residential use, with a daily penalty of up to €1,000 per square meter, or even €5,000 in cases of repeat offenses.
A dedicated enforcement team monitors violations in cities like Paris.
Administrative Procedures
The change of use process is complex and involves several steps:
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Verifying the co-ownership rules to ensure they permit this type of activity.
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Identifying the required compensation (e.g., converting a commercial space into housing).
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Preparing and submitting the application to the local municipality.
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Conducting site inspections and detailed assessments by municipal authorities.
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Final validation after completing the necessary works (DAACT).
Partnership
Soveico assists the owners in managing the change of use and compensation procedures. Their expertise includes the search for clearing rooms and administrative file management, allowing owners to optimize their assets while respecting the rules.
Thanks to our partner Soveico, Cosykey guarantees to offer its clients expert support in the change of use and compensation procedures, guaranteeing optimal compliance and efficient valuation of their real estate assets.