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Relocation News France

Back of rent regulation in Paris.

First tested from 2014 to 2017, the rent regulation is back in Paris since July 1st.

Principaly, this law was created to support middle classes citizen living in the capital. As a matter of fact, rents in Paris had increased by 50% between 2005 and 2015 causing to lose about 12,000 inhabitants because of the unsustainable price of rents. The rent regulation, although not very popular with landlords, helped to break the situation by recording much lower raise of 1% between 2015 to 2017.

The rent regulation but for which leases?

The rent regulation is restricted to leases of Alur Law type (“Bail Loi Alur”).

The regulation is not retroactive and only leases signed from the 1st of July 2019 will benefit from it. However, it concerns renewals of the lease and for which the request for a rent review is made 5 months before the renewal date.

As a reminder, the duration of a lease is usually 1 year tacitly renewable for a furnished accommodation and 3 years tacitly renewable for an unfurnished accommodation.

How to check the correct amount of rent?

In order to verify whether the price of the proposed rent corresponds to the regulation, the prefecture of Paris has set up a dedicated website: http://www.referenceloyer.drihl.ile-de-france.developpement-durable.gouv.fr/

After providing information, the website presents a low reference rent, a middle reference rent and a maximum reference rent that the owner cannot exceed, all expressed in Euro per square meter.

What to do in case of non-compliance?

In the event of non-respect of the rent of reference by the owner, the tenant can contact the prefecture. The owner will then have 2 months to comply. In case of non-compliance the landlord risks a fine of up to 5,000 Euros if it is a physical person and up to 150,000 Euros if it is a moral person.

 

 

(mmc, 4 of July 2019)

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