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Amount of rent in Montpellier since 1 July 2022

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

In Montpellier, the rent of a dwelling whose tenancy (including mobility lease) signed or renewed after June 2022 is framed by reference rents fixed by prefectural decree. The owner can also request a rent supplement, in some cases.

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.

Basic Rent

Base Rent Amount

The basic rent (amount of rent excluding charges and excluding rent supplement) shall not exceed reference rent increased effective on the date of signature of the lease.

FYI  

you can find out the reference rents increased using this simulator.

If basic rent exceeds reference rent increased, the tenant can request a rent reduction from the landlord (rent reduction).

The tenant can send this proposal to the owner:

  • Either by registered letter with acknowledgement
  • Or act of commissioner of justice (formerly act of judicial officer)
  • Either hand-delivered against receipt or outflow

The proposal shall contain the following elements:

Rent Information

The lease must indicate:

  • the basic rent (amount of rent excluding charges and excluding rent supplement)
  • the reference rent and reference rent increased in force on the date of signature of the lease and which correspond to the category of accommodation (location, number of rooms...).

FYI  

you can find out the reference rents increased using this simulator.

If this is not the case, the tenant has 1 month from the effective date of the lease to send to the owner by registered mail with acknowledgement of receipt a notice to do it.

The landlord has 1 month to respond from the date of receipt of the tenant's proposal.

In the absence of a reply or in the event of the owner's refusal within this time limit, the tenant may enter the protection litigation judge the court on which the house depends, to get a reduction of the rent, if necessary.

Rent supplement

Terms

The landlord may apply a rent supplement if the following 2 conditions are met:

  • The accommodation has special characteristics (location, comfort)
  • The basic rent (excluding expenses) is equal to reference rent increased

Warning  

For a lease signed since August 18, 2022, rent supplement is not allowed if the dwelling has at least 1 of these characteristics: toilets on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows letting the air through (without ventilation grid), vis-à-vis less than 10 m, infiltration or flooding coming from the outside, problems of water evacuation during the last 3 months, degraded electrical installation, poor exposure of the main room.

If a rent supplement applies, the rent is equal to the sum of the basic rent and the rent supplement.

The amount of the rent supplement and the supporting housing characteristics must be indicated in the lease.

Protest

The tenant may contest the rent supplement by first seizing the departmental conciliation board within 3 months from the date of signature of the lease. It is up to the landlord to prove that the rent supplement is justified.

If the Conciliation Commission reaches an agreement, the amount of rent shall be that fixed by the conciliation document issued by the Commission. This new amount applies from the effective date of the lease.

But if the disagreement persists, the tenant has 3 months from the receipt of the opinion of the commission to ask, protection litigation judge the court on which the dwelling depends, to cancel or reduce the rent supplement. The amount of rent fixed by the judge's decision shall apply from the date of entry into force of the lease.

FYI  

where mobility lease, prior recourse to the conciliation board is not possible. However, it is possible to appeal to judicial conciliator.

Warning  

a mobility lease cannot be renewed.

As the lease renewal approaches:

  • when the basic rent (excluding charges and excluding rent supplement) is less than reference rent reduced, the owner may rent revaluation share,
  • where the basic rent is higher than reference rent increased, the tenant may rent reduction.

FYI  

you can find out the reference rents increased using this simulator.

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Share in rent revaluation

What are the conditions?
  • The new rent (excluding charges and excluding rent supplement) must not be greater than reference rent reduced in effect at the time the owner informs the tenant. It is possible to know the reference rents.
  • Where the renewal takes place from 24 August 2022, the accommodation shall be classified as A, B, C, D or E (as indicated on the DPE: titleContent). From this date, the rent of a housing classified F or G cannot be increased.
How to inform the tenant?

The landlord must inform the tenant of the new rent, at least 6 months before the end of the lease.

The owner must send a notification :

  • Either by registered letter with acknowledgement
  • Or act of commissioner of justice (formerly act of judicial officer)
  • Either by hand-in-hand against receipt or outflow

This notification must contain the following:

FYI  

when the owner commits rent revaluation share, it cannot give notice (leave) to the tenant for lease term.

How to challenge?

Tenant may challenge the share for rent revaluation.

To do this, he must provide the landlord with 6 rental references of comparable housing, located:

  • In the same group of buildings
  • In any other group of buildings with similar characteristics and located in the same geographical area

Please note

these rent references are available on the rent observatory .

In case of disagreement or in the absence of a response from the tenant or the owner to the request for a revaluation of the rent, either must enter, 4 months before the end of the lease, the Departmental Conciliation Commission (DCC).

If the disagreement persists despite the action of the CDC, the protection litigation judge can be entered before the end of the lease.

Warning  

if the judge is not seized before the end of the lease, the lease is renewed under the previous terms of the rent. However, if the old rent has not been revised in the previous 12 months, the owner may revise to fix the new rent.

How do I apply the new rent?

When a new rent is decided by the tenant and landlord or by the judge, it applies gradually from the renewal of the lease.

The rent increase is spread out:

  • For a 3-year lease, 1/3 per year (or 1/6 per year if the rent increase is greater than 10%)
  • For a 6-year lease, 1/6 per year

Example :

For a lease is 3 years, the last monthly rent (excluding charges and excluding rent supplement) applied to the tenant before the renewal of the lease is €600 and the new rent is €650 :

  • The increase to be applied is €50 monthly
  • This increase is less than 10% of rent, car 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 = €16.67 ), then 2e year €33.33 per month €50 x 2/3 = €33.33), and 3e year €50 per month.

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 this had not been done within the last 12 months)
  • An increase in annual rent equal to 15% the actual cost of work done since the last renewal of the lease (improvement work or upgrading work), where the amount of such work is at least equal to the amount of the last rent year.

Action on rent reduction

If the basic rent (excluding charges and excluding rent supplement) included in the lease is greater than the reference rent plus, the tenant can ask the landlord for a reduction in the basic rent.

The following 2 conditions must be met:

  • The tenant applies at least 5 months before lease term
  • The increased reference rent taken into consideration is that in force on the date of application

FYI  

you can find out the reference rents increased using this simulator.

The tenant must address his written request to the owner:

  • Either by registered letter with acknowledgement
  • Or act of commissioner of justice
  • Either by hand-in-hand against receipt or outflow

The application must contain the following:

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

If no agreement is reached in spite of the action taken by the CDC, the tenant may seize the protection litigation judge before the lease expires.

Warning  

if the tenant does not refer the matter to the judge within that time, the lease is renewed under the previous conditions of the rent. If the old rent has not been revised in the previous 12 months, the owner may revise.

Basic Rent

Basic rent (excluding charges and excluding rent supplement) of a dwelling which has been returned to the market after less than 18 months of inoccupation may be increased only in certain cases:

But the new basic rent must not exceed reference rent increased effective on the date of signature of the lease.

It is possible to know the reference rent increased by this simulator.

Warning  

Where the lease is signed from 24 August 2022 and concerns accommodation of Class F or G (class indicated on the DPE: titleContent), basic rent must not exceed the rent applied to the previous tenant.

Rent not revised

The amount of the new rent must not exceed the amount of the last rent applied to the previous tenant.

However, the annual variation of IRL published on the date of signature of the new lease, if none review has not taken place in the past 12 months.

In all cases, the new rent must not exceed reference rent increased effective on the date of signature of the lease.

FYI  

you can find out the reference rents increased using this simulator.

If the new rent exceeds reference rent increased effective on the date of signing of the lease, the tenant may dispute by sending a letter with acknowledgement of receipt to the owner (recommended procedure).

If it fails, it must enter the departmental conciliation board on which the house depends. This procedure is free of charge and obligatory in order to be able to refer the matter to the judge.

If the intervention of the commission results in a failure, the tenant may refer the matter to the protection litigation judge the court on which the house depends.

Warning  

the amount of rent applied to the last tenant must be entered in the lease.

Work

Amount of work not less than 50% of last year of rent

Terms

The new rent may be higher than the last rent applied to the previous tenant, if the landlord has financed work.

This work can be:

  • of improvement work (excluding energy-saving work that resulted in a rent increase for cost reduction)
  • or work on standards of decency.

This work shall:

  • have been carried out (in common or private areas) since the departure of the last tenant
  • and be at least equal to 50% of the last year of rent (excluding charges).
What new rent to set?

If these conditions are met, the annual rent charged to the previous tenant may be increased:

  • an amount equal to 15% the amount of work TTC: titleContent
  • within reference rent increased effective on the date of signature of the lease

FYI  

you can find out the reference rents increased using this simulator.

How to challenge?

If the new rent exceeds reference rent increased effective on the date of signing of the lease, the tenant may dispute by sending a letter with acknowledgement of receipt to the owner (recommended procedure).

If it fails, it must enter the departmental conciliation board on which the house depends. This procedure is free of charge and obligatory in order to be able to refer the matter to the judge.

If the intervention of the commission results in a failure, the tenant may refer the matter to the protection litigation judge the court on which the house depends.

Amount of work at least equal to last year of rent

What new rent to set?

The new rent may be higher than the last rent applied to the previous tenant if improvement work have been achieved:

  • less than 6 months
  • and for an amount at least equal to the last year of rent

But the new rent cannot exceed reference rent increased effective on the date of signature of the lease.

FYI  

you can find out the reference rents increased using this simulator.

How to challenge?

If the new rent exceeds reference rent increased effective on the date of signing of the lease, the tenant may dispute by sending a letter with acknowledgement of receipt to the owner (recommended procedure).

If it fails, it must enter the departmental conciliation board on which the house depends. This procedure is free of charge and obligatory in order to be able to refer the matter to the judge.

If the intervention of the commission results in a failure, the tenant may refer the matter to the protection litigation judge the court on which the house depends.

Underpriced Rent

If the rent charged to the former tenant was undervalued, the new rent can be increased.

How do I know if the old rent is undervalued?

It is possible to estimate the undervaluation of rent based on rents usually found for comparable housing in the same geographic area.

Please note

these rent references are available on the rent observatory .

How to fix the new rent?

The following 2 rules must be followed:

1re rule, the rent increase shall not exceed 50% the difference between:

  • Amount of rent determined by reference to rents in the vicinity for comparable housing
  • Last rent applied to the previous tenant, possibly revised on the IRL if this has not been done in the last 12 months

2e rule, the new rent may not exceed reference rent increased effective on the date of signature of the lease.

FYI  

you can find out the reference rents increased using this simulator.

How can I contest the new rent?

If the new rent exceeds reference rent increased effective on the date of signing of the lease, the tenant may dispute by sending a letter with acknowledgement of receipt to the owner (recommended procedure).

If it fails, it must enter the departmental conciliation board on which the house depends. This procedure is free of charge and obligatory in order to be able to refer the matter to the judge.

If the intervention of the commission results in a failure, the tenant may refer the matter to the protection litigation judge the court on which the house depends.

Rent supplement

Terms

The landlord may apply a rent supplement if the following 2 conditions are met:

  • The accommodation has special characteristics (location, comfort)
  • The basic rent (excluding expenses) is equal to reference rent increased

Warning  

For a lease signed since August 18, 2022, rent supplement is not allowed if the dwelling has at least 1 of these characteristics: toilets on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows letting the air through (without ventilation grid), vis-à-vis less than 10 m, infiltration or flooding coming from the outside, problems of water evacuation during the last 3 months, degraded electrical installation, poor exposure of the main room.

If a rent supplement applies, the rent is equal to the sum of the basic rent and the rent supplement.

The amount of the rent supplement and the supporting housing characteristics must be indicated in the lease.

Protest

The tenant may contest the rent supplement by first seizing the departmental conciliation board within 3 months from the date of signature of the lease. It is up to the landlord to prove that the rent supplement is justified.

If the Conciliation Commission reaches an agreement, the amount of rent shall be that fixed by the conciliation document issued by the Commission. This new amount applies from the effective date of the lease.

But if the disagreement persists, the tenant has 3 months from the receipt of the opinion of the commission to ask, protection litigation judge the court on which the dwelling depends, to cancel or reduce the rent supplement. The amount of rent fixed by the judge's decision shall apply from the date of entry into force of the lease.

FYI  

where mobility lease, prior recourse to the conciliation board is not possible. However, it is possible to appeal to judicial conciliator.

Basic Rent

Base Rent Amount

The basic rent (amount of rent excluding charges and excluding rent supplement) shall not exceed reference rent increased effective on the date of signature of the lease.

Warning  

Where the lease is signed from 24 August 2022 and concerns accommodation of Class F or G (class indicated on the DPE: titleContent), basic rent must not exceed the rent applied to the previous tenant.

It is possible to know the reference rent increased by this simulator.

If basic rent exceeds reference rent increased, the tenant can request a rent reduction from the landlord (rent reduction).

The tenant can send this proposal to the owner:

  • Either by registered letter with acknowledgement
  • Or act of commissioner of justice (formerly act of judicial officer)
  • Either hand-delivered against receipt or outflow

The proposal shall contain the following elements:

Rent Information

The lease must indicate:

  • the basic rent (amount of rent excluding charges and excluding rent supplement)
  • the reference rent and reference rent increased in force on the date of signature of the lease and which correspond to the category of accommodation (location, number of rooms...).

FYI  

you can find out the reference rents increased using this simulator.

If this is not the case, the tenant has 1 month from the effective date of the lease to send to the owner by registered mail with acknowledgement of receipt a notice to do it.

The landlord has 1 month to respond from the date of receipt of the tenant's proposal.

In the absence of a reply or in the event of the owner's refusal within this time limit, the tenant may enter the protection litigation judge the court on which the house depends, to get a reduction of the rent, if necessary.

Rent supplement

Terms

The landlord may apply a rent supplement if the following 2 conditions are met:

  • The accommodation has special characteristics (location, comfort)
  • The basic rent (excluding expenses) is equal to reference rent increased

Warning  

For a lease signed since August 18, 2022, rent supplement is not allowed if the dwelling has at least 1 of these characteristics: toilets on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows letting the air through (without ventilation grid), vis-à-vis less than 10 m, infiltration or flooding coming from the outside, problems of water evacuation during the last 3 months, degraded electrical installation, poor exposure of the main room.

If a rent supplement applies, the rent is equal to the sum of the basic rent and the rent supplement.

The amount of the rent supplement and the supporting housing characteristics must be indicated in the lease.

Protest

The tenant may contest the rent supplement by first seizing the departmental conciliation board within 3 months from the date of signature of the lease. It is up to the landlord to prove that the rent supplement is justified.

If the Conciliation Commission reaches an agreement, the amount of rent shall be that fixed by the conciliation document issued by the Commission. This new amount applies from the effective date of the lease.

But if the disagreement persists, the tenant has 3 months from the receipt of the opinion of the commission to ask, protection litigation judge the court on which the dwelling depends, to cancel or reduce the rent supplement. The amount of rent fixed by the judge's decision shall apply from the date of entry into force of the lease.

FYI  

where mobility lease, prior recourse to the conciliation board is not possible. However, it is possible to appeal to judicial conciliator.

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