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Discussion Starter · #1 ·
Hi again, one more question for a friend.

An American friend rented an apartment in France. The apartment is owned by a non-French person (I think), who has a bank account in the US. My American friend wired the rent from their American bank account to the landlord's bank account in the US. Landlord complained that he wants future rent payments paid in euros to his other bank account in France.
Would anyone know if a landlord has the right to specify which bank account the rent is to be paid to - especially if this was never specified in the rental agreement?
 

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How did friend become aware of US account? Presumably landlord advised the details - if so, I would be inclined to keep paying it into that account, especially as the other option will involve fees.

There's no 'have the right' issue. It's a matter for negotiation.

Clearly the landlord has the right to specify payment options at the time of signing the contract.
 

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Discussion Starter · #3 ·
Hi Bellthorpe,

Thanks for the info.

Yes, your assumption is correct. Landlord first gave US bank account details, then wanted tenant to change and pay to French bank account. From what I was told, no specific bank account was specified in their rental agreement.
 

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From the US...lived in Canada, UK, & France
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Hi again, one more question for a friend.

An American friend rented an apartment in France. The apartment is owned by a non-French person (I think), who has a bank account in the US. My American friend wired the rent from their American bank account to the landlord's bank account in the US. Landlord complained that he wants future rent payments paid in euros to his other bank account in France.
Would anyone know if a landlord has the right to specify which bank account the rent is to be paid to - especially if this was never specified in the rental agreement?
Imagine the situation reversed. That a rentor in the USA expected to pay his rent in rubles, euro, or pounds. The landlord would not be expected to accept such an offer.

One pays one's rent in the currency of the country in which the property is located unless special arrangements are made and accepted beforehand. If your friend will continue to pay by wire transfer or electronic funds transfer (EFT), which is more common in France, of course the landlord can specify to which bank the payment would go and in what currency the payment would be made.

If the landlord accepted a wire transfer, EFT, or check in dollars at his French bank, it would likely require weeks for the payment to clear and the exchange rate offered by most French banks on dollars is terrible. It is the same in the US. If one attempted to deposit a check in rubles, euro, or pounds, the wait for the check to clear and the exchange rate would be terrible.

Best of luck to your friend.

Ray
 

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If the landlord is operating as a business then French law obliges him to have all business receipts credited into a dedicated bank account. Overseas transactions are possible of course but are more complicated from the accountancy point of view. He'll be in trouble with his accountant / the fisc if he lets payments bypass his business account for no valid reason.
If he's not declaring the income he'd probably be only too happy with a US payment but his reaction suggests that he's legit and has to comply with his accountancy obligations.
 

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If it's not a holiday rental, then one would expect to have to pay the rent in Euros into a French bank account. The landlord may also change the account into which payment is made - for example, the landlord may change banks. Tax on the rental income would in any case be payable in France in any case in accordance with the tax treaty and paying into a French account affords greater transparency tax-wise.
 

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Why is this such a problem for your friend? As long as the rent is paid and a receipt delivered (quittance de loyer) and as long as the landlord doesn't change his mind every five minutes - does it matter?

It generally makes life easier if you are on good terms with your landlord and this is hardly an unreasonable request.

:confused2:
 

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I don't know if he has a right to demand it. But I think it'd be a lot easier for him to have the French account and auto-payments from there than from the US bank. Doing it from the US is a massive headache. Especially once your'e over here in France. I wired money from my US for the security deposit, while I was still in the US in person... but set up and am using French bank since here. I think my landlord wanted it that way too... auto-payments from French banks are an easy common thing. Auto-payments from US to foreign countries, not so much. Though maybe depends on the bank.

I feel like it'd be up to the landlord, part of the initial agreement to give him the apartment or not. But ... if it's not in the contract, I guess they can't demand it.

(Edit...oh and I missed the part about how the landlord is not French. that does make it seem a bit weirder... I guess there is some benefit having Euro to Euro for them?)
 

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Discussion Starter · #9 ·
(Edit...oh and I missed the part about how the landlord is not French. that does make it seem a bit weirder... I guess there is some benefit having Euro to Euro for them?)
I know that he's not originally from France, but he is married to a French woman now, so he may have double nationality at this point - this would be quite likely, but I couldn't say for sure because that's basically all I was told.

Thanks all for your input, I'll pass it along! :)
 
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