Question: I have read your article on Leaseback on page 43 of the October issue. I am considering buying a house in France soon and have heard of a French government sponsored scheme called Para-Hotelerie. What are the main provisions of this scheme and how does it differ from Leaseback. Where could I get a copy of the full provisions of this scheme. Perhaps your readers may be interested in this subject as I have never seen it described in magazine articles. THANKS
Answer: Leaseback is not a French government sponsored scheme. The management company which is applying for the authorisation to run a Leaseback is not approved by the French government as a sound company. In order to get the label of leaseback and the authorisation to run a tourist activity in the building, the company has to prove to the Prefecture that a minimum of apartments in the building are leased out to them and that a certain amount of commercial services are provided to tourists. A leaseback can be either a Residence de Tourisme or a Regime para-hotelier. Therefore a para hotellerie is a form of leaseback. The difference between the two different types of leaseback is the services provided to tourist renting out the properties (for example, the provision of breakfast facilities, room booking service, presence or not of a restaurant etc…)
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