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Underpriced rent of a dwelling: increase on renewal of lease

Verified 24 August 2022 - Legal and Administrative Information Directorate (Prime Minister)

When the rent is undervalued relative to market prices, the owner of the home may increase it at the time of renewal of the lease, subject to certain conditions. The steps to be taken differ depending on whether the municipality is located in stretch.

Warning  

In some municipalities specific rules apply, which are not presented here. This is Paris, Lille, Hellemmes and Lomme, Lyon and Villeurbanne, Montpellier, Bordeaux and component communes Common plain and Is Together

To find out whether or not your community is in a tense area:

Check that a housing is in a tense area

Some of the accommodation units are not affected by the rent guidelines, as they are subject to other rules. These are the units subject to 1948 actor agreed by Anah (excluding intermediate rent agreements), social housing, tourist furniture subleases are excluded.

Tense Area

The rule is different depending on the lease renewal date:

Since 24 August 2022

In mainland France, where the lease concerns accommodation classified F or G (class indicated on DPE: titleContent), it is forbidden to increase the obviously undervalued rent.

FYI  

In Guadeloupe, Martinique, French Guiana, La Réunion and Mayotte, the landlord freely fixes the amount of rent, regardless of the class of the accommodation. This rule is valid until 1to July 2024.

Before 24 August 2022

In mainland France, the landlord can increase the rent on the condition that the house meets an energy performance criterion. The primary energy consumption of the housing shall be less than 331 kWh per m2 per year. One energy performance diagnostics less than 4 years old must attest to this.

Estimate Undervaluation

The undervaluation of the rent is estimated by comparison with rents in the neighbourhood for comparable housing.

These units must be located in the same group of buildings or in another group of buildings with similar characteristics and located in the same geographical area.

If the township is part of a settlement with more than one million inhabitants, the landlord must identify at least 6 rents.

If the municipality is in another geographical area, the landlord must identify at least 3 rents.

At least 2/3 of these references must correspond to rentals for which there has been no change in tenants for at least 3 years.

Each reference must include the following information:

  • Street Name
  • Partial indication of the building number (by ten),
  • Quality and construction time of the building
  • Accommodation floor and possible lift
  • Living space of the dwelling and number of its living rooms
  • Possible Annexes
  • Equipment including running water, indoor toilet, shower room, heating
  • Construction period of the building
  • Indication that the tenant has been in the premises for at least 3 years
  • Monthly rent amount excluding actual charges

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General case

Some references (period of construction of a building, type of accommodation...) can be obtained from the network of local rent observatories .

Department 78, 91, 92, 93 or 94

Some references (period of construction of a building, type of accommodation...) can be obtained from the network of local rent observatories or the rent observatory of the Paris city centre (Olap) .

Calculate new rent

The proposed new rent should be based on the neighbourhood rents for comparable housing.

However, the proposed increase shall not exceed the greater of the following 2 limits:

  • 50% the difference between the rent corresponding to rents in the neighbourhood for comparable housing and the last rent applied to the tenant before the renewal of the lease (possibly revised if not)
  • An increase in annual rent equal to 15% the actual cost of improvement work or upgrading to the standards achieved since the last renewal of the lease if the amount of such work is equivalent to the minimum amount of the last year of rent

Example :

If the works amount to €4 000 TTC for monthly rent of €300 either €3,600 annual), the monthly rent may be increased by €4 000 X 15%, or €600 / 12 = €50.

In the case of empty accommodation, the increase is greater than 10% monthly rent (300 X 10% = €30), its application will be spread over 6 years.

The rent will be revalued by 1/6 per year, an increase of 1re year €8.33 per month (600 X 1/ 6) / 12),e year €16.67 per month (600 X 2 / 6) / 12), and subsequent years, respectively €25 per month €33.33 per month €41.67 per month €50 per month.

Proposal to tenant

In order to reassess the rent, the landlord must make the proposal to his tenant in accordance with certain conditions of form and deadline.

The owner must make this proposal at least 6 months before the end of the lease.

The application must be addressed to the tenant in the following ways:

  • Recommended letter with request for receipt
  • Act of Commissioner of Justice (formerly Act of Judicial Officer)
  • Discount against receipt or outflow

Warning  

the time limit shall run from the day of receipt of the letter recommended by the tenant, the service of the act of commissioner of justice or the delivery of the tenant's own document.

The revaluation proposal must contain the following information:

Warning  

when the landlord proposes the renewal of the lease with a revalued rent, he is not entitled to give notice to the tenant of lease term in progress. Because it would force the hand of the tenant who wants to stay in the house.

Tenant Agreement

In order to accept the owner's proposal for an increase, the tenant must send the owner a written agreement no later than 4 months before the end of the lease.

The rules for the application of the rent increase depend on the type of rented accommodation.

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Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.

Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

Denial of tenant

The tenant may refuse the proposed increase.

To do this, he must send a letter to the owner no later than 4 months before the end of the lease.

The tenant can use this document template:

Challenge rent increase at lease renewal

In case of refusal, the increase proposed by the owner cannot be applied to the renewal of the lease.

Please note

no response from the tenant shall be deemed to be refused. The increase proposed by the owner cannot be applied to the renewal of the lease.

Referring to Conciliation Commission

If the tenant refuses or does not respond no later than 4 months before the end of the lease, the landlord (or tenant) can enter the Departmental Conciliation Commission (DCC) to try to come to an agreement on the amount of rent. This procedure is essential in order to be able to refer the matter to the judge if necessary.

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Before the CDC, the tenant can challenge the proposed increase by referring to the rents in the neighbourhood for comparable housing.

The CDC has 2 months to give its opinion.

In case of agreement on the rent increase, a new rent applies to the renewal of the lease.

The rules for the application of the rent increase depend on the type of rented accommodation.

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Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.

Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

Seize judge

If the disagreement persists despite the CDC's intervention, the landlord (or tenant) may refer the matter to the protection litigation judge, provided that it is done before the end of the lease.

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The judge is seized before the end of the lease

Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.
Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

The judge was not seized before the end of the lease

It is no longer possible to refer the matter to the judge.

If the disagreement persists despite the intervention of the CDC and until the end of the lease, the lease is then renewed under the previous rent conditions (final rent, possibly revised as the lease evolves)IRL: titleContent, if the revision has not taken place within the last 12 months).

Other

Warning  

  • In mainland France, where the lease concerns accommodation classified F or G (class indicated on DPE: titleContent), it is forbidden to increase the obviously undervalued rent.
  • In Guadeloupe, Martinique, French Guiana, La Réunion and Mayotte, the landlord can increase rent that is clearly undervalued, regardless of the class of accommodation indicated on the DPE: titleContent. This rule is valid until 1to July 2024.

Estimate of new rent

The proposed new rent should be based on the neighbourhood rents for comparable housing.

These units must be located either in the same building group or in another building group with similar characteristics and located in the same geographical area.

In municipalities with a population of over one million, the landlord must provide at least 6 rents.

In other geographical areas, the landlord must provide at least 3 rents.

At least 2/3 of these references must correspond to rentals for which there has been no change in tenants for at least 3 years.

Each reference must include the following:

  • Street Name
  • Partial indication of building number (by ten)
  • Quality and construction time of the building
  • Accommodation floor and possible lift
  • Living space of the dwelling and number of its living rooms
  • Possible Annexes
  • Amenities of the accommodation, including running water, indoor toilet, shower room, heating
  • Construction period of the building
  • Indication of occupancy of the premises for at least 3 years by the tenant
  • Monthly rent amount excluding actual charges

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General case

Some references (period of construction of a building, type of accommodation...) can be obtained from the network of local rent observatories .

Parisian agglomeration

Some references (period of construction of a building, type of accommodation...) can be obtained from the network of local rent observatories or the observatoire des rents de l'agglomération parisienne (OLAP) .

Proposal to tenant

The owner must make his proposal at least 6 months before the end of the lease.

The client must address the proposal to the tenant in one of the following ways:

  • Recommended letter with request for receipt
  • Commissioner of Justice Act
  • Hand-delivered to tenant against receipt or outflow

The time limit shall run from the day of receipt of the registered letter, the service of the Commissioner of Justice's document or the delivery of the document by hand.

The text of the proposal must contain the following information:

Warning  

when the landlord proposes to the tenant the renewal of the lease with a revalued rent, he is not entitled to give leave to the tenant to lease term in progress. Because that would be force hand of the tenant wanting to stay inside the walls.

Agreement

In order to accept the owner’s proposal for an increase, the lessee must send the lessee a written agreement no later than 4 months before the end of the lease.

In this case, the revaluation of the rent is acquired by agreement between the parties.

The rules for the application of the rent increase depend on the type of rented accommodation.

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Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.

Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

Refusal or no response

The tenant may refuse the proposed increase. To do this, he must send a letter to his owner no later than 4 months before lease term.

The tenant can use this mail template:

Challenge rent increase at lease renewal

Please note

no response from the tenant shall be deemed to be refused.

If the tenant refuses or fails to respond, the increase proposed by the owner cannot be applied to the renewal of the lease.

If the tenant refuses or does not respond no later than 4 months before the end of the lease, the landlord (or tenant) must enter the Departmental Conciliation Commission (DCC) to agree on the price.

Referring to Conciliation Commission

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You own

You can use this document template:

Owner: refer to the departmental conciliation board a request for a reassessment of rent

Before the CDC, the tenant can challenge the proposed increase by referring to the rents in the neighbourhood for comparable housing.

The CDC has 2 months to give its opinion.

The rules for the application of the rent increase depend on the type of rented accommodation.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.

Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

Seize judge

If the disagreement persists despite the intervention of the CDC, the protection litigation judge the court on which the dwelling depends must be seized. We have to do this before lease term.

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The judge is seized before the lease expires

Empty Housing

On renewal of the lease, the new rent is not immediately applicable. The increase should be phased in gradually, by 1/3 annual or by 1/6 annual depending on the duration of the new lease.

However, if the increase is greater than 10% of the initial rent and the duration of the new lease is less than 6 years, then the increase applies by 1/6 annual during this lease, then by 1/6 annual at the subsequent renewal.

Example :

For a lease is 3 years, the last monthly rent applied is €600 and the increase to be applied is €50 monthly:

  • This increase is less than 10% of rent, because 600 X 10% = €60, then its application will be 1/3 per year.
  • Monthly rent will be increased on 1re year €16.67 per month€50 X 1 / 3), then 2e year €33.33 per month€50 X 2 / 3), and 3e year €50 per month.
Furnished accommodation

The rent increase applies to the renewed contract.

However, if the increase is greater than 10% of the initial rent, it applies by 1/3 annual to the renewed contract and at subsequent renewals.

The judge was not seized before the end of the lease

It is no longer possible to refer the matter to the judge.

If the disagreement persists despite the intervention of the CDC and until lease term, the lease is then renewed to the previous rent conditions (the amount of which may be revised).

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