Tourist Residences: New Limits on Operators’ Monopoly Rights

In a decision dated 16 October 2025, the French Supreme Court confirmed that the operator of a tourist residence cannot claim an absolute monopoly over all lettings within the residence.

In this case, several co-owners had been sued after renting out their apartment independently, without using the residence operator. The Court of Appeal had ruled that the co-ownership regulations imposed a mandatory centralised rental management system.

The French Supreme Court overturned that decision.

The Court recalled that the rules applicable to tourist residences only require that at least 70% of the units remain subject to a single management scheme. This does not mean that every co-owner is deprived of the right to rent out their property independently.

More importantly, the Supreme Court held that the Court of Appeal had distorted the clear wording of the co-ownership regulations: no clause expressly prohibited the relevant co-owners from managing their apartment themselves.

This decision is important for owners of tourist residence properties facing operators who sometimes attempt to extend their rights beyond what is actually provided by law or by the co-ownership regulations. It confirms that an obligation of “single management” cannot simply be inferred from a broad interpretation of the residence documents.

This ruling forms part of a broader line of case law tending to rebalance the relationship between operators and owners in managed property investments.

(French High Court, 3rd civ, 16th October 2025, n° 24-14.303)