INVESTMENTS IN TOURISM RESIDENCES

Initially conceived in the 1970s in order to develop real estate rental offerings in winter sports locations, tourism residences quickly spread to the coast, the country and even in cities. As with other types of serviced residences, they are showing strong growth.

But they are distinguished by this fact: in order to benefit from the various tax advantages, investors who have acquired lots in these residences must lease them for a minimum of 9 years to the managing lessee. This manager is responsible for finding clients, recovering the rents and maintaining the residence. The owner is thus completely released from managing the property and receives the rental income. Upon the expiration of the initial lease (9 years), the investor may renew the initial lease, sell the property or recover the enjoyment of the property.

During this period, numerous difficulties may arise between the owners and the operators since the leases transmitted to the co-owners and included in the initial investment “package” are often favourable to the manager and do not generally serve the interests of the owner. 

With its expertise and experience, Goethe Avocats informs, assists and defends the owners in these types of residences, both individually and collectively, so that their interests are preserved and secured.

 

 

 

 

 

 

 

 

 

 

 

 

 

Examples of issues addressed recently by the Firm :

 

  • Rent disputes (unpaid rents, rent revisions, etc.),

  • Negotiation of lease renewals,

  • Searching for a new operator or a “reconversion” solution for the establishments,

  • Handling of construction issues,

  • Handling of co-ownership problems,

  • Assistance in the context of procedures for court-ordered reorganisation/ liquidation of the operator, negotiations with candidates to take over operations,

  • Procedures for compensation of harm suffered by the co-owners as a result of actions by various participants in the operation (promoters-sellers/ estate management advisors/ notaries/ operators, etc.)

 

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