Deprived of rents, owners in tourist residences refuse to be "an adjustment variable"

"We are attacking our savings, that was not the goal", regrets Alain Mathieu, owner of a studio in a tourist residence in Puteaux (Hauts-de-Seine), managed by the Réside Études group.

This retiree had taken out a loan for the purchase of his property, convinced by the prospect of a "quiet" investment. One way to build up "a nest egg for the future", and to financially help her disabled daughter. In these rentals intended for tourist use, payment of rents is guaranteed by the operating group.

In March, he received a rent corresponding to the first quarter of operation of the residence, which opened in December 2019. Since then, nothing.

Réside Études, which did not respond to AFP's requests, justified the suspension of rents by the impact of the health and economic crisis, in a letter addressed to the co-owners. The group claims to have suffered a decrease of 45% of its accommodation revenues compared to the previous year.

Alain Mathieu, who estimates he has already lost 6.000 euros, was able to negotiate with his bank a postponement of the repayment of his loan until the second quarter of 2021 but still has to pay the interest, around 300 euros per month. And it is not certain that the activity of his residence, which depends largely on business tourism, will resume next year.

Along with other investors, Alain Mathieu has taken collective action against Réside Études. "The owners become a variable of adjustment of their financial difficulties", alarms their lawyer, Jacques Gobert. “Legally, the rents must be paid despite the Covid” he adds.

After the failure of negotiations with Réside Études, the Marseille lawyer, who says he represents more than 4000 owners against several groups of tourist residences, says he is ready to launch legal proceedings against the group.

"Trust destroyed"

With around thirty co-owners of a Pierre et Vacances residence in Val Thorens, Laurent (first name changed) also launched a collective action, still in the conciliation phase. He received rents, but cut off periods of confinement. That is to say more than 6.000 euros of shortfall. "No doubt more," he sighs, while his residence is, for the time being, still closed to the public.

For the loan of his four apartments, bought to supplement his future retirement, he pays 1.800 euros per month. And must finally "dig" in its income.

In compensation for unpaid rents, the two groups have offered their landlords to receive, over the next few years, part of the additional turnover of their residences.

But Alain, Mathieu and Laurent, who like the other owners do not have access to the accounts of their residences, considered the offers too uncertain, and declined them.

"Confidence is completely destroyed," says Laurent.

"The apartments have become unavailable at their tourist destination" which had the effect of "suspending the object of the lease" and therefore the payment of rent, says Dominique Ménigault, director of heritage management at Pierre et Vacances, who recalls that the group's turnover decreased by 22,4% in 2020.

"It's a totally extraordinary situation," notes Pascale Jallet, general delegate of the National Syndicate of Tourist Residences (SNRT). It distinguishes the already "very difficult" one of sea, mountain and country residences which saw their turnover drop by 30% in 2020 according to a study by the SNRT, from that of town residences, which show a loss of at least 60%.

"We have to find a balanced solution, which restores the load between the operators, the owners and the State," she continues.