3 years after its introduction, what is the result of the Alur law? This text consists of 177 articles and aimed to encourage the relationship between landlords and tenants, as well as make housing easier to access for everyone. But what’s the current situation? What are the consequences for furnished rentals? Here is my analysis.
- If the introduction of a standard rental contract, aa list of obligatory facilities to rent out a property,, or a standard pre-departure inspection filled some legal gaps, the Alur law and its implementation decrees haven’t brought anything new to the table. These measures only legalized practices that were already common and approved by the jurisprudence. This can be perplexing regarding the Alur law’s real effect regulating the market.
- The Alur law aimed to ensure that tenants were better informed. It dictated that a variety of documents needed to be part of the lease: an extract from the co-ownership regulations, additional technical diagnostics, information sheet, etc. But will tenants really take note of all these rather lengthy, dense documents? Nothing is less certain…
- Concerning furnished rentals, none of the 177 articles passed defined the notion of “short term”. Its unfortunate that we still cannot legally distinguish between furnished rentals for tourists (which are nightly or weekly) and temporary furnished rentals (which last several months to a year), since the latter responds to a real need felt by business travelers (often expats or on an assignment, etc.) or students. This lack results in a legal vagueness that is harmful for both landlords and tenants.
- Another failure of the Alur law is its main measure, the rent caps that are now in place in Paris and Lille. This is particularly questionable concerning furnished rentals in Paris. The calculation method for the reference rent was arbitrarily set by the prefect: since the OLAP (Observatoire des Loyers de l’Agglomération Parisienne, observatory for rents for the Paris urban area) didn’t have enough data to determine a reference rent for furnished rentals, so the prefect decided to simply increase the price of leases for unfurnished rentals by 11%, regardless of location or the property’s features. This measures once again demonstrates the lack of interest shown in furnished rentals.
- Initially the Alur law was created to improve the relationship between landlords and tenants and to make housing more accessible for everyone. Yet sadly it seems that it has had the opposite effect. Tenants are freed from any liability After they’ve signed a lease and accepted its conditions, they have a three-month period in which they can dispute any extra charges. Moreover, they don’t have to pay any additional charges if they are late paying their rent, but the landlord has to pay the tenants extra is they are late returning the security deposit! Landlords are increasingly demanding regarding the deposits of their tenants, unfortunately creating certain frustrations for the latter. The Alur law therefore has the opposite effect to the one expected when it was put into place, to improve housing access for everyone.
Three years after its introduction, the results of the Alur law are mixed in everyone’s opinions: landlords, tenants, real estate professionals, government officials. We can legitimately wonder what the next government will do to tackle the issue… It’s worth keeping an eye on!
Find the whole of my opinion column on the Alur law on the Lodgis website.