Roche & Cie

4 questions to understand the regulation of rents

27 Oct 2016

Who is affected by the regulation of rents in Paris ?

Entered into force on 1 August 2015, the flagship measure of the Alur law was implemented initially only in the capital where rents have soared by 42% over the past decade. The device applies when leasing  a dwelling and therefore affects all tenants who have signed a new lease since. In total, nearly 20% of new tenants will see their rent lowered. The extension of the scheme was announced for Lille and 412 towns in Ile-de-France.

How to know the rent of reference ?

Paris is now divided into 14 geographical areas with 80 neighborhoods in which were fixed the reference rent levels expressed in euro per square meter, excluding charges, depending on the type of rental (furnished or not), the number of parts and the period of construction. To know the basic rent of your apartment, you should consult the interactive map put online by the Interdepartmental Regional Directorate for hosting and housing.

What risk an owner who does not respect the rent control ?

Donors are obliged to apply rent control but are subject to any review by a body or an external body. No financial or criminal sanctions are therefore provided. The device therefore relies on the good faith of the lessor and especially the vigilance of the tenant.

Can a tenant to contest the rent ?

A Parisian tenant who has signed a new lease with effect from 1 August 2015 or whose lease is renewed should inquire about the maximum amount that the owner is entitled to charge him. The rent per square meter of rental accommodation can not exceed the rent of reference, plus 20% corresponding to housing characteristics. If the basic rent stipulated in the contract is higher than the basic rent plus in force on the date of signing the contract, the tenant may dispute the rent in a letter properly.

If the owner refuses or does not respond, the tenant has a period of three months to challenge this additional rent by first entering the departmental committee of competent conciliation, and in the absence of agreement between the parties, by recourse to the judge of the district court. A real obstacle course. As for new tenants, they have three years from signing the lease to contest the rent. Pending the decision of the court, the landlord can not evict the tenant.

Source : Le Figaro