French Civil Code leasehold

What is a French Civil Code leasehold?

A Civil Code lease (bail civil) is a rental agreement governed by Articles 1708 and following of the French Civil Code. Unlike standard residential leases, it offers greater contractual freedom and is mainly used for:

• Corporate housing (company rentals)
• Secondary residences (non-primary homes)

Key features of a Civil Code lease

The Civil Code lease is considered a “common law lease”, meaning:

• The terms are freely negotiated between landlord and tenant
• There are fewer legal constraints compared to standard leases
• It applies only when no specific rental regime is imposed by law

However, some rules still apply:

• Prohibition of abusive clauses
• Compliance with minimum housing standards
• Mandatory technical diagnostics (energy, safety, etc.)

Advantages of renting under a civil lease in Paris for landlords

1. Full Contractual Freedom

One of the main advantages of a civil lease is the freedom to define the lease terms.

This flexibility is particularly useful for owners who:

• Are living abroad and plan to return
• Intend to use the property later (e.g., for a child studying in Paris)
• Want to retain control over when they recover their property

2. No Rent Control in Paris

Unlike standard residential leases, civil leases are not subject to rent control regulations in Paris.

This means:

• The rent amount is freely set by the landlord and tenant
• No legal caps or reference rent limits apply
• This is a major advantage for luxury rental.

Note: Under a civil lease, the security deposit is also negotiable. While it is not common practice to request more than two months’ rent, it is legally possible to agree on a higher deposit with the tenant if both parties consent.

3. Customizable Lease Terms

Another key advantage of a civil lease is the ability to fully customize the contract clauses according to the needs of both parties.

Examples : 

• The landlord and tenant can agree on tailored termination conditions, such as shorter or longer notice periods than standard leases.
• The lease can include additional services, such as cleaning, or concierge services.
• Parties can define flexible payment terms, including rent payment schedules or all-inclusive pricing (utilities, internet, etc.)

4. Easier Property Recovery for Landlords

A major benefit for landlords is the ability to recover the property more easily.

Under a civil lease:

• The landlord can typically give 3 months’ notice before the anniversary date
• No legal justification is required
• Shorter notice periods can be agreed in the contract

Compared to standard leases (Law of July 6, 1989):

• Strict legal reasons are required (sale, personal use, fault)
• 6 months’ notice minimum
• Strong tenant protection rules apply

Obligations of the Landlord

As with standard residential leases governed by the law of July 6, 1989, a landlord renting under the Civil Code remains responsible for maintaining the property. This includes carrying out all necessary works and major repairs, while routine maintenance and minor repairs remain the tenant’s responsibility.

Major works and repairs (landlord’s responsibility) include:

• Structural works (walls, roof, structure of the building)
• Major repairs due to age, defects, or force majeure
• Replacement of essential equipment (heating, plumbing, electrical systems)
• Works necessary to ensure the property can be used as intended
• Guaranteeing the tenant peaceful enjoyment of the premises throughout the lease without disturbance, interference, or unresolved issues throughout the lease.

Routine maintenance and minor repairs (tenant’s responsibility) include:

• Day-to-day upkeep (cleaning, minor fixes, ventilation)
• Small repairs due to normal use (light bulbs, seals, handles, unclogging drains)
• Regular maintenance of equipment (boiler servicing, appliances, etc.)

Obligations of the Tenant

• Pay rent on time
• Use the property in accordance with the terms of the civil lease
• Maintain the property and carry out routine upkeep (e.g. cleaning, replacing light bulbs, minor repairs, maintaining appliances, and general day-to-day maintenance)
• Return the property in good condition at the end of the lease
• Provide notice (typically one month) before leaving
• Pay any applicable taxes, including residence tax (taxe d’habitation) if the property is used as a secondary residence

Nota bene: Employees who benefit from official accommodation must pay the housing tax with respect to this accommodation since they can occupy the accommodation at any time.

Essential clauses of the Civil Lease: detailed content

The following clauses are generally found in a civil code lease:

• Description of the premises;
• Intended use (secondary residence, corporate housing)
• The duration of the lease determined by the parties, the assignment of the contract and the tacit agreement;
• The amount of the rent and terms of revision;
• Rental charges;
• The security deposit;
• The exclusion from the application of Law No. 89-462 of July 6, 1989;

Lease Duration, Termination, and Renewal

The duration is freely defined in a Code civil lease:

• Fixed-term lease → ends on agreed date (unless renewed)
• Open-ended lease → ends with notice

Termination rules under a civil lease are flexible and can be freely agreed between the parties.

In practice, notice periods are often around three months for the landlord and one month for the tenant. Unlike residential leases governed by the 1989 law, the landlord is generally not required to justify the termination.

Civil Code lease vs. Standard residential lease: Key differences

Photo by Scott Graham