Limited rents: the application decree published

The decree to implement rent control for rentals as of residence is published today in the Official Gazette.

As a reminder, ALUR law provides that in the tense areas, the rent for a leased may not exceed a reference rent fixed by the prefect on the basis of data provided by local observatories rent plus 20%. However, if the home has certain characteristics Location or comfort, the lessor has the option of setting a rent higher by applying additional rent.

Reference Rent: what elements are to consider?

Decree No 2015-560 of 10 June 2015 states that to secure the benchmark rent, the prefect must take into account four elements:

  • The type of rental (furnished or bare)
  • The number of pincipales parts
  • The period of construction
  • The geographical area

In Paris, the OLAP has divided the capital into 80 districts and held four construction periods: before 1946, between 1946 and 1970, between 1971 and 1990 and after 1990 (read the article “A step forward in the rent regulation in Paris!” to know more).
If the Paris Observatory has extensive data on empty housing, the situation is different regarding furnished. In the absence of sufficient data, and knowing the differences between furnished and unfurnished rents vary according to geographical areas, one can legitimately question how the prefect may establish a reference rent for furnished accommodation in 80 neighborhoods of Paris

What characteristics justify additional rent?

The decree provides that the additional rent is justified if the housing has features that have not been taken into account in determining the basic rent and which are decisive for the fixing of rent, especially in comparison with the housing same category located in the same geographic area. Furthermore, they must not be subject to charges paid by the tenant.

The procedure for implementing additional rent are very blurred, the decree making no real accuracy against the law.

The amount of additional rent and characteristics that warrant must be mentioned in the rental contract. The tenant, who has yet expressly accepted this additional rent by signing the lease, have a period of three months to challenge by first entering the departmental committee of competent conciliation, and in the absence of agreement between parties, using the judge. This is a measure that could create numerous disputes!

All these provisions will concern only new leases and lease renewals. If rent control should be applied progressively, as and extent of the approval of local observatories in rents in Paris, it only remains to wait for the prefectural order. It is announced for late June…

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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

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