A step forward in the rent regulation in Paris!

As the emblematic measure of the ALUR law, the rent regulation should be implemented on an experimental basis in Paris. The Olap (Rent Observatory of Paris Agglomeration) has released the reference rents for some of the Parisian neighborhoods according to the type of accommodation and the construction year, with some very surprising results. However there are still no information about the regulation on furnished apartments nor on rent supplements.

Prime minister Manuel Valls has announced at the end of August that the measure would be as a first step only applied to Paris on an “experimental basis”.

The average rent by type of accommodation, construction year and area: surprising results

The OLAP has released the validation of zonings as well as a part of the results according to the private-sector rental properties’ structuring.
The median rent can vary according to different criteria:

  • The number of rooms that the property has: one, two, three, four and more
  • The building’s construction date. Four periods have been stated: before 1946, between 1946 and 1970, between 1971 and 1990, and after 1990
  • Geographic area: Paris has been divided into 80 neighborhoods
Zonage retenu à partir des 80 quartiers parisiens - Source OLAP

Map of median rents for each of the 80 areas of Paris. By OLAP

The examples of the median rents stated by the OLAP lead to quite surprising conclusions.
For instance, a one room apartment located in the 12th Parisian district in an old building, that is, built before 1946, will be rented for a price 24 % higher than a same apartment in a recent building, built after 1990. The situation is reversed in the 15th arrondissement. The same type of property will be rented 6 % less if it is located in an old rather than a recent building.

Neighborhood 48 – 12th arrondissement
1 room property
Monthly median rent for sm²
Before 1946 28,20 €
After 1990 22,80 €
Neighborhood 59 – 15th arrondissement
1 room property
Monthly median rent for sm²
Before 1946 26,40 €
After 1990 27,90 €

Furnished rentals concerned by this measure

The rents of the furnished properties rented as the tenant’s main residence will be regulated. The Prefect will establish the rental reference of furnished properties on the basis of rent superior to those established for the empty rental from the gaps discovered by the OLAP between empty and furnished rental.
However there is slight problem: the OLAP has little information and references on furnished rentals, enabling the effective implementation of the law. It would be rather tempting to make a rise percentage based on a few examples, posing the risk to establish a general regulation based on exceptional cases.

The rent supplement : a much- awaited decree

A rent supplement might be applied to any accommodation that presents particular characteristics determining the establishment of the rent that are not taken into account in the rental reference. We may understand that a property owner who rents an apartment with a great view, in a high up floor, or in a perfect state with a pleasant level of comfort can ask for a complementary amount.

For the establishment of the reference rent, the state of the property will not be taken into account: it will be the same price whether the property has been recently renovated or if the paint coatings are in a bad state. Also, the rent will be identical whether the apartment is on the 6th floor with or without elevator or whether it as a parking lot or not. Let’s hope that these criteria will justify the establishment of a complementary rent.

In a furnished rental, this rent complement could also be implemented to take the equipment and proposed services into account.

The rent regulation could be definitely set aside with the decree determining the required conditions for the establishment of a rent complement. Case to watch closely.

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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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