Rent Reduction

26 July 2017

Hi

I am an owner in Residence Paxton, nmanaged by Accelis Gestion.

I just got a letter proposing a reduction to in rent to 2.5%.

Accelis Gestion claim that they need to reduce the rent in order to keep the Paxton business going and to pay for upgrades, etc.

This is my second reduction. In about 2011 my “guaranteed rent” was reduced to 3.5%.

Just wondering if you’ve had experience of this before and if you refused to accept the reduction?

If so, what happened? Was the original "guaranteed" rent maintained?

If you didn't agree to the reduction, was rent held back?

Thanks Conor

Submitted by Graham on

Hi Connor

Yes I have had the same letter so after not much response from the Forum I sought legal advice - I am to ignore the letter at present and wait to see if Accelis pay rent in August (a month late) then If no rent I will send a commandement de payer using the forum option . My solicitor thinks the company are trying to squeeze the owners financially to manover for cheap resale. I can let you have the details of my solicitor if you want. I personaly reduced the fixed rent to 4.7%  in 2011 and will resit doing so again as other owners remained at 5.03%

Fee for a letter from the Solicitor to Accelis refusing addendum Eu 150.

 

Hope this helps

Graham

Submitted by derekm on

Yes

same correspondence received. Am ignoring for now.

Thanks guys.

 

I'm going to sit tight too.

 

Cheers, Conor

Submitted by tande on

Hi

Yes got same letter recently.  Also accpeted a reduction in rent around 2011.  The letter was very vague as it talks about rent reductions, renovations and 'potential investors'. 

I am going to send a letter looking for more specifics.

Good stuff Tommy.

Graham, I just noticed that you can organise a Commandement de Payer via this site for £50 under the "Rent Not Paid" tab near the top right hand corner of this page.

When you click on it you get the following:

"This topic has been discussed several times on the forum. If your rent is late then you should consider serving a Commandement de Payer.

What happens when I serve a Commandement de Payer?

This service costs £50 (as opposed to approximately 250 EUR if you use a solicitor). You will need to provide:
1.Details of your arrears
2.A copy of your signed "bail commercial"
3.A copy of your passport (and of anyone else on the deed)

For now simply start the process Request a Commandement de Payer"

Cheers Conor

Hi,

Am in similar situation, accepted rent reduction in 2011 but am weary to accept any further reduction as a reduction to 2.5% could half the origional value paid. I dont know why payments have now become late on a regular basis. Just wondering does anyone have up to date contact details for Acellis Gestion as I havent had any correspondance from them and wish to follow this up?

Regards, David

I just sent an email to Accelis Gestion refusing the rent reduction this morning.

 

Just wondering if anyone has done anything similar or heard anything from Accelis Gestion?

 

Has anyone been paid their July rent yet?  I won't get my July bank statement till later in August

 

Cheers Conor

Submitted by baughan1 on

I received no rent since May either. I rang accelis on this number 0033164665050 from Ireland and spoke to Girl with little English who put me onto another women who asked me my lot number. Then she asked if I had received a letter in July? I told her i hadn't  even tho I had and she said another wud be sent by e mail. I asked about the rent and she said it wouldn't be paid til late Aug early Sept. The company were having difficulties she aid .... so am I , I replied!! She said that Mr Balcou was on holiday. 

Submitted by baughan1 on

Haven't accepted any rent reductions.  Only correspondence from accelis are these forms to sign , no rental statements for years.  

Submitted by derekm on

No rent received yet. Interesting to hear it is expected late August...

I emailed Antoine Balcou - no reply (presume he's on holidays like everyone else in France).

I haven't accepted the rent reductions and haven't signed the forms sent recently.

 

I received an email from Mr Balcou yesterday, offering to buy my apartment @ €2000 per m2!!!!!!!!. He's back at his desk!

Seamus's picture
Submitted by Seamus on

It is the opinion of 1 person who knows this business that your mgt company is attempting to buy apartments in your residence at cut price and this is behind the proposed rengt reduction. I am guessing that there are still cash flow issues but Paxton is in a good location and in theory the business should be viable without so drastic a reduction. I would suggest not to accept the rent reduction. 

That's good to know, Seamus.  I really think they are chancing their arm!

 

Nuala, I spoke to someone who sold their small apartment in Paxton last year for over €60k via Antoine Balcou.

 

See link below to a French site advertising apartments in Paxton for over €60k.  That's about €3k psm!

 

https://www.leboncoin.fr/ventes_immobilieres/1160689717.htm?ca=12_s

 

They won't necessarily sell for that price and you have to take fees into account, but it's a better indicator for what we should be getting offered.

 

Cheers Conor

That's good to know, Seamus.  I really think they are chancing their arm!

 

Nuala, I spoke to someone who sold their small apartment in Paxton last year for over €60k via Antoine Balcou.

 

See link below to a French site advertising apartments in Paxton for over €60k.  That's about €3k psm!

 

https://www.leboncoin.fr/ventes_immobilieres/1160689717.htm?ca=12_s

 

They won't necessarily sell for that price and you have to take fees into account, but it's a better indicator for what we should be getting offered.

 

Cheers Conor

Hi, Yes, I have no doubt that Antoine is chancing his arm! I didn't accept the first rent reduction and I seem to be one of the lucky ones as I'm still getting 5.3% and my rent is up to date. My rent was never held back but I can only speak for myself.

 

 

Submitted by colette on

Hi All, I am new to the site but after reading some of the articles I see we are all in similar positions. My husband and I purchased a properrty in Paxton back in 2007 we took out a french mortgage for approx 2/3 of the total cost. Everything was good untill we had reduced rent in 2011 , unfortunately after much debate with Accelis Gestion we were bullied into signing new agreement . Luckily we never had any delay in payments and have always managed to keep the mortgage paid. Recently we looked into the possibility of selling and asked the management company to give any details requested to the Estate agent. Very quickly we were made an offer from  Gestion on behalf of (buyers ) for approx 45% of our purchase price , this would not clear our present mortgage on the property and we did not respond. Since then we have had notification of approximately 55% reduction in our rent due to economic pressures and planned works. I have written to them and e-mailed saying this is not acceptable to me and refused to sign new ammended lease. I have also asked for financial statements and copies of annual general meeting reports form 2010, which is when we recieved our last report .

Recent media reports show tourism up by 6% in the first part of this year and cost of property increases in Paris , so I have asked them to verify the financial hardship of company.

I realize I am probably flogging a dead horse but not ready to give in to bullying , and have threatened legal action, again think this is probably a waste of time , but will keep you all informed of how things progress .

Any advise will be much appreciated.

Also have just been told by my accountant that last years rent includied VAT which she says is against French Tax laws , but it leaves me now with a VAT bill to be paid. Has anyone else had this happen. 

We did have Vat the first couple of years but not for some time. I have asked Accelis Gestion how they plan to proceed regarding payment of VAT but have had no response so far

Submitted by Graham on

Hi Connor  that's fantastic I have just checked and not received July rent yet so am thinking of using CDP service. Has anyone else been paid rent? Graham

 

I would advise you to ignore this request and sign nothing. It's odd that some of us are getting paid and some are still waiting. I know of one other owner who was waiting all of August, but after phoning Accelis a few times and speaking nicely, but firmly declining rent reduction!, to the girl in charge, she got her full rent at the beginning of September. Good luck!

Hi
I was wondering if anyone has had their Q3 2017 Rental paid at this stage.
I am wondering is it time to serve a "Commandement de payer" for the unpaid rental.
Has anybody served these to date and what has been the response.

On a seperate note is any one aware of the exact date of the Lease expiry in 2018 - I couldn't confirm from my initial review of my documents.
I am looking at a legal review of the options, taking on board some of the great information provided on this site.

Should we be looking to form or re-form an owners group again with the future change in mind.
I am interested in the views of any Paxton owners on the site.

Hello everyone,
Just got letter today from Accelis Gestion offering 2200e -2400e per sq metre of property from " Investor " who is looking for 30 to take up offer also Q3 not paid and we accepted rent reduction
back in approx. 2011.We are interested to hear from anyone else with similar letter etc

Hi,

I didn't get the letter offering to buy my property but I did get my Q3 rent on November 13th.

Submitted by tande on

Yes got same letter regarding 2200 to 2400 square metre. Looks like a big reduction on price paid for apartment.

In regard to people who got the Q3 2017 Rental , just wondering if you had agreed to the previous Rent reduction (in 2011) - is there an order in which Rentals are now being paid or is it random

Hi All

 

Just another letter with same offer, but translation this time,did anyone else get same

Submitted by Graham on

Hi Yes I got two letters second had translation. Have phoned up as to when to expect Q4 and Antoine Baccolu has hinted end of November. Hmm! The management company are not going under and just trying to squeeze the owners to make another rash descicion. Fianancially it makes sense to hold out. Thanks for the forum Seamus without hearing the plight of other owners I would feel really without emotional empathy/ support.

 

Graham 

Submitted by derekm on

Yes, I got the second letter also. Still no rent.

On the subject of lease expiry though (2018 sometime I believe), I presume at that point the management company is free to seek to renegotiate with us on whatever terms they see fit?

Submitted by tande on

Hi

I accepted the rent reduction n 2011 to 4%. Didn't get rent in Novemebr yet.

Also got letters re: offer or 2200 to 2400 per sq metre.  So if the apartment is 25.29 m2 in my case that's best case value offer of ~60,000.

The cost of the apartment in my case (less VAT and furniture) was ~84,000. So a bit of writedown in a time when property prices seem to be rising

in Paris and surrounds.

Looking back at the lease , it says it was for 10 years. The first payment came in Jan 2008, which would put lease start at Oct 2007. So does this mean

then that the lease ends in Oct 2017? November the last payment? (when/if it comes).

It also states in the lease 'on expiry of that period, the lease shall be renewable on a tacit renewal basis for a period of 10 years'

Also says that 'if the landlord(us) should decide not to renew this lease on its natural expiry then he must so inform the Tenant by registered recorded delivery

letter 12 months in advance!!

It would be nice to know what the various options available are. Anybody know a good french solictor who speaks english and charges reasonably?

 

 

 

 

 

Submitted by baughan1 on

I also received both letters with same offer to buy. Also I haven’t received my Nov rent !!  I rang last week and they e mailed me back saying that Antoine would DO HIS BEST to pay my rent at the end of November........

Hi Kathrina, We didn't accept the rent reduction in 2011 and did recieve Q3 rent - so that doesn't seem to be the connection. They seem to be increasing pressure coming up to 10 yrar mark.......

​Hi just received 3T rental ,which is good after the letters ,creating presure to make rash decision.

 

WE should All just wait and see what the next offer is and decide together our next move as a team,in my opinion.

 

Does anyone else have an opinion on this?

Submitted by tande on

Hi 

Apart from Sean, did anyone else receive rent in November/December yet?   I didn't receive anything.

Also I note from the last correspondence re: the rent reduction that the company Accelis Gestion address now seems to be at

Paxton Residence Hotel Spa despite the footnote on their letter stating that it's  24, Rue Jean- Jaures. I sent a letter to 24 Rue Jean-Jaures, 77164 Ferrieres-en-Brie

querying their rent reduction and the letter was returned.  The new address seems to be (but I haven't tested it yet)

SARL ACCELIS GESTION

Paxton Residence Hotel Spa

1 Avenue Joseph Paxton

77164 FERRIERES EN BRIE

 

 

Submitted by derekm on

Another letter received from Accelis Gestion this week. Another request to sign up for a 2.5% yield and an offer to put me in touch with interested investors for a second round of sales. Also, mention of an upcoming call for a renovation budget to be funded by us.

I presume others got the same correspondence?

 

Submitted by rball on

Dear all, 

I have also received a letter suggesting a reduction in rent which I will not be accepting.

I am going to appoint a solicitor to deal with this situation, I have taken them to court before and been succesful and will do so again. If anyone wishes to email me privately on richardballemail@gmail.com, please do so, as may make sense to take on this situation on a united front basis.

Kind Regards, 

Richard 

 

 

Submitted by Graham on

Hi Just recieved notification of the final half of rents owed, which will be paid in April. No mention of when the first 1/4 of 2018 will be paid. This tactic of sqeezing owners to financial hardships for reduced rent/ late payments is so frustrating and forcing many owners to seek legal consultation. I feel that unless we owners have some unity of collective action we will be totaly at the behest of Accelis profiteering stratergies. Just a thought; we havn't had any maintenance costs yet and they will have to be agreed by a percentage of owners if my understanding is correct. I did not agree to the rent decrease did anyone? Graham

Hi Everyone

I've not been at home for the last 5 mths but see I've also received reduced rent despite refusing to accept a reduction.

I need to go back over my bank statements to see what I have / haven't been paid and plan to send a CDP once I get my act together.

Regarding selling, see link to a site selling units in Paxton:

https://www.leboncoin.fr/ventes_immobilieres/offres/ile_de_france/?f=a&t...

They are looking for approx €25 - €35 psq metre, well above what Accelis Gestion are offering.  I'd definitely hold out.

Regards

Conor

Submitted by Graham on

Hi I have now decided to seek the services of an Advocat and seek legal advice. I notice on my comercial lease that the rent should have been reviewed every three years and indexed on the average building costs published by the french authorities INSEE,

https://www.insee.fr/en/statistiques/3280831  -  makes for interesting stats for Paris area especialy flats!

As I have not had a financial breakdown of the rent for  several years my question is are we being paid the true rentable value?

Recieved late 2nd rent owed from 2017.

 

Regards Graham

Submitted by gagui111 on

Jusqu'à présent mes loyers étaient payés maisle versement du 4 eme trimestre a été tronqué de moitié sans mon accord, et avec 3 mois de retard. Ce n'est pas acceptable. Accelis est en droit de nous demander une baisse de loyer mais il doit le justifier en nous présentant ses resultats comptables. Donc sa façon de faire est inacceptable. Malheureusement c'est une façon de faire connue.

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