Amendments to the mobility lease draft by the Economic Affairs Commission

In the last few days of May 2018, the ELAN bill has been amended by the Commission of Economic Affairs. Some of these amendments concern the mobility lease. Here is what you need to know…

No authorisation to change the use of a mobility lease, nor the registration number

In order to avoid any ambiguity in interpretation, article L 631-7 of the Construction and Housing Code (CCH) has been added to clearly state that furnished properties to be rented within the context of the future mobility lease must not be subject to an authorisation for changing the use. Likewise, during the debates, it was stated by Mrs Christelle Dubos, spokesperson, that the mobility lease does not fall within the furnished tourist rentals category, and that consequently, landlords do not have to obtain a registration number.

The mobility lease could be subject to an additional clause to prolong the lease within the maximum duration of 10 months

If the tenant wishes to rent the property for an additional period of time beyond the duration initially anticipated but within the limit of the total 10 month period, for example prolonging the period for a temporary assignment or an internship, an additional clause could be signed by both parties. However, this will not be possible if the additional clause results in the exceeding of the maximum duration of the mobility lease.

No security deposit but a VISALE scheme for all tenants with mobility leases

Regarding the ban on landlords to demand a security deposit, during the debates, Mr Julien Denormandie, Secretary of State attached to the Minister of Territorial Cohesion, mentioned that the Visale rent guarantee scheme, financed and managed by Action Logement, was going to be adapted and would protect landlords more than a security deposit. Mr Denormandie stated that the Visale guarantee would cover “all tenants, regardless of their status”. “This guarantee is more protective for landlords than a simple security deposit as it will cover non-payment of the rent, but also restoration of the property!”. He also mentioned that it was important that “the removal of the barrier to entry for the tenant does not establish a new barrier to entry for the landlord”. A new agreement will soon be signed with Action Logement. It will increase “the general scheme for mobility leases to all students and to the rest of the population”. The five year agreement (2018-2022) regarding employers’ contribution to contruction work (PEEC), signed between the State and Action Logement on 16th January 2018, states in article 7 that “Action Logement will make […] the future professional mobility lease, included in the housing bill, eligible for the Visale scheme.

Additions to the mobility lease

The list of terms which have to appear in the mobility lease has been added to. The following must be stated:

  • The sum and date of the last rent payment from the previous tenant, from when they left the property less than 18 months before the signing of the lease;
  • The nature and sum of works carried out in the property since the end of the last rental contract.

It must also include a note informing the tenant that the payment of a security deposit will not be required.

The technical diagnostic file must be joined to the mobility lease

The technical diagnostic file mentioned in article 3-3 of the 1989 law should be joined to the mobility lease. This file, which must be provided by the landlord, consists of an energy performance report (DPE), a lead exposure risk report, information relating to asbestos, a report on the condition of the domestic electricity and gas facilities and an ESRIS report.

To find out more, you can look at the legislative file on the National Assembly website (in French): http://www.assemblee-nationale.fr/dyn/15/dossiers/evolution_logement_amenagement_numerique

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About me

Maud Velter
Maud Velter
Legal & practical advice for furnished rentals
Associate and Legal Director of Lodgis, furnished rentals and property law specialist