2 bedrooms, Triangle d'Or Paris 8e
Rue de la Trémoille, 75008
Rue de la Trémoille, 75008
Updated on 02/23/22
In France, the rent control law limits the rent a residential lease property owner can charge. This rule applies to high-demand areas ("zone tendue" in French), specifically in municipalities such as Paris, Lille, Montpellier, and Bordeaux.
Owners of furnished or unfurnished apartments for rent are therefore bound by the Rent Framework, and the rent will have be calculated on the basis of three references per m2:
To calculate the regulated rent in Paris, the French Public Service has created an online platform to estimate the reference rent of your private rented housing. To do so, you will have to enter your region, the number of main rooms, the construction period of the building, and the type of rental (furnished or unfurnished). Then finish by selecting the desired period and entering the address.
The rent control rule does not apply to accommodations that have never been rented before, which is the first rental.
In France, if the rental property is being rented for the first time, the lessor can request the rent amount as they wish and is authorized to revise the rent amount once a year according to the rent review clause indicated in the lease agreement.
The rental accommodation concerned should meet the following two conditions:
Several situations make it possible for landlords to escape from the rent control limit. For example,
1. Rental property excluded from the rent control are the following:
2. It is possible to apply a rent supplement (complément de loyer) as long as it can be justified. Thus, a rental apartment with a reference rent of €3,000 can be rented out at €3,650 if its comfort characteristics allow it.
Here are some examples of rent supplements:
Balcony, view of the Eiffel Tower, air conditioning, full double-glazed windows, wine cellar, video projector, marble floors, sauna, modern bathrooms and fully equipped kitchen, high-quality bedding, linens included, private garden, terrace, etc.
The rental listing in France must mention the following components whether you are a private owner or a real estate agency.
The basic rent (loyer de base) is the rent amount without any extra rental charges or rent supplement.
The reference rent is the regulated rent price per square meter in the rent control area.
The increased reference rent is the basic rent amount that can not be exceeded for the lease signed under the Alur law. It is fixed depending on the rent levels observed by the local French Rent Observatory Department. Therefore, it cannot be 20% higher than the reference rent.
However, for any leases signed after August 18, 2022, the rent supplement will not be allowed if the apartment has certain features, such as
For an individual, the penalty amount may extend up to 5,000 euros. On the other hand, the legal entities such as real estate agencies, SCPIs (Société civile de placement immobilier), and rental platforms, the penalty may increase to 15,000 euros.
For any lease signed under the Alur law, suppose the landlord does not respect the French rent control regulation. In that case, the French police will provide the non-compliant landlord a two-month grace period to rectify the lease agreement and reimburse any excess rent payments to their tenant. However, if the landlord fails to comply within two months of receiving the formal notice via letter, the prefecture may give a penalty.
Editor : Siyi Chen
Credit Photo @Anh Q Tran
Sources: Service Public