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Rent amount in Montpellier since July 1, 2022

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

In Montpellier, the rent of a dwelling with a residential lease (including mobility lease) signed or renewed after June 2022 is governed by reference rents fixed by prefectural decree. The owner can also ask for a rent supplementIn some cases.

FYI  

Some dwellings are not covered by the rent controls because they are subject to other rules. These are the dwellings subject to the 1948 law or contracted by the Anah (excluding intermediate rent agreements), social housing (HLM), furnished tourist goods and subleases.

Base rent

Base Rent Amount

The base rent (rent amount excluding expenses and excluding rent supplement) must not exceed reference rent plus in force on the date of signature of the lease.

You can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

If the base rent exceeds reference rent plus, the tenant may ask the landlord for a rent reduction (rent-reduction action).

The tenant may address this proposal to the landlord:

  • Either by registered letter with acknowledgement of receipt
  • Either by act of commissioner of justice (formerly act of bailiff)
  • Either be delivered by hand in return for receipt or receipt

The proposal should contain the following elements:

Rent information

The lease shall indicate:

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

FYI  

you can see the increased reference rents 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 formal 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 response or in case of refusal of the owner within this period, the tenant can seize within 2 months the protection litigation judge the court on which the dwelling is dependent, to obtain a rent reduction, if necessary.

Rent supplement

Conditions

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

  • The accommodation has particular characteristics (location, comfort)
  • The base rent (excluding expenses) is equal to reference rent plus

Warning  

For a lease is signed since August 18, 2022, the rent supplement is prohibited if the dwelling has at least 1 of these characteristics: sanitary on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows that allow air to pass abnormally (without ventilation grate), facing less than 10 m, infiltration or flooding from the outside, water drainage problems in 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 base rent and the rent supplement.

The amount of the rent supplement and the characteristics of the dwelling justifying it must be indicated in the lease.

Challenge

The tenant can contest the rent supplement by first seizing the departmental conciliation commission 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 receipt of the commission's opinion to ask, protection litigation judge of 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  

in case of mobility lease, prior recourse to the Conciliation Committee is not possible. But it is possible to call on the conciliator of justice.

Warning  

a mobility lease cannot be renewed.

In the lead-up to the lease renewal:

  • when the base rent (excluding charges and excluding rent supplement) is less than reduced reference rent, the owner may hire a rent revaluation share,
  • where the base rent is more than reference rent plus, the tenant may hire a rent-reduction action.

you can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

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Rent revaluation action

What are the conditions?
  • The new rent (excluding expenses and excluding rent supplement) must not be greater than reduced reference rent in effect at the time the landlord informs the tenant. It is possible to know the reference rents.
  • When the renewal takes place from 24 August 2022, the dwelling must be classified A, B, C, D or E (classification indicated on the DPE: titleContent). From that date, the rent of a dwelling classified as F or G may not 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 of receipt
  • Either by act of commissioner of justice (formerly act of bailiff)
  • Either by hand delivery against receipt or signature

The notification shall contain the following:

FYI  

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

How do I challenge?

The tenant can challenge the rent revaluation share.

To do this, it must provide the owner with 6 references of rent of comparable dwellings, located:

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

These rental references are available on the website of rent observatory.

In the event of disagreement or in the absence of a response from the tenant or landlord to the request for rent reassessment, either must seize, 4 months before the end of the lease, the Departmental Conciliation Committee (CDC).

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

Warning  

if the judge is not seized of the matter before the end of the lease, the lease is renewed under the previous terms of the rent. However, if the previous rent has not been revised in the previous 12 months, the landlord can revise to set the new rent.

How do I apply the new rent?

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

The rent increase is spread out:

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

Example :

For a lease is 3 years, the last monthly rent (excluding expenses and 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 shall be €50 monthly
  • This increase is less than 10% rent, because 600 X 10% = €60, so its application will be 1/3 per year.
  • The monthly rent will be increased on 1re year of €16.67 per month (because €50 x 1/3 = €16.67 ), then 2e year of €33.33 per month (because €50 x 2/3 = €33.33), and 3e year of €50 per month.

However, the proposed increase must not exceed the higher of the following 2 limits:

  • 50% the difference between the rent which corresponds to the rents charged in the neighborhood for comparable dwellings and the last rent applied to the tenant before the renewal of the lease (possibly revised if not done within the last 12 months)
  • An increase in the annual rent equal to 15% the actual cost of the work done since the last renewal of the lease (improvement work or retrofitting work), where the amount of such work is at least equal to the amount of the last year's rent.

Rent reduction action

If the base rent (excluding charges and excluding rent supplement) entered in the lease is higher than the reference rent plus, the tenant may ask the landlord for the reduction in the base rent.

The following 2 conditions must be met:

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

you can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

The tenant must send his written request to the owner:

  • Either by registered letter with acknowledgement of receipt
  • Either by act of commissioner of justice
  • Either by hand delivery against receipt or signature

The application shall contain the following elements:

If the landlord refuses, or fails to respond to the tenant, the tenant must seize the Departmental Conciliation Committee (CDC) at the latest 4 months before the lease expires.

If no agreement is reached despite the CDC's action, the tenant can seize the protection litigation judge before the lease expires.

Warning  

if the tenant does not bring the matter before the court within this period, the lease is renewed under the previous conditions of the rent. If the previous rent has not been revised in the previous 12 months, the landlord can revise.

The rent (excluding expenses) can consist of 2 elements: the base rent and one rent supplement.

Base rent

The base rent (excluding charges and excluding rent supplement) of a dwelling returned to the market after less than 18 months of vacancy may be increased in certain cases only:

But the new base rent must not exceed reference rent plus in force on the date of signature of the lease.

you can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

Warning  

When the lease is signed on or after August 24, 2022, and relates to a Class F or G dwelling (class indicated on the DPE: titleContent), on base rent shall not exceed the rent charged to the previous tenant.

Unrevised rent

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

However, it may be increased by the annual variation of the IRL published on the date of signature of the new lease, if none revision has not intervened in the last 12 months.

In any case, the new rent shall not exceed reference rent plus in force on the date of signature of the lease.

you can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

If the new rent exceeds reference rent plus in effect on the date of signature of the lease, the tenant can contest by sending a letter with acknowledgement of receipt to the owner (recommended approach).

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

If the commission's intervention fails, the tenant may bring the matter before the protection litigation judge the court on which the dwelling depends.

Warning  

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

Works

Amount of work at least equal to 50% of the last year of rent

Conditions

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

This work may be:

  • of improvement work (excl. energy-saving works which resulted in an increase in rent for reduction of charges)
  • or of the setting-up work standards of decency.

This work must:

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

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

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

You can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

How do I challenge?

If the new rent exceeds reference rent plus in effect on the date of signature of the lease, the tenant can contest by sending a letter with acknowledgement of receipt to the owner (recommended approach).

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

If the commission's intervention fails, the tenant may bring the matter before the protection litigation judge the court on which the dwelling depends.

Amount of work at least equal to the last year of rent

What new rent should be set?

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

  • 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 plus in force on the date of signature of the lease.

You can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

How do I challenge?

If the new rent exceeds reference rent plus in effect on the date of signature of the lease, the tenant can contest by sending a letter with acknowledgement of receipt to the owner (recommended approach).

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

If the commission's intervention fails, the tenant may bring the matter before the protection litigation judge the court on which the dwelling depends.

Undervalued rent

If the rent with the previous 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 a rent from rents usually recorded for comparable dwellings located in the same geographical area. These rental references are available on the website of rent observatory.

How do I fix the new rent?

The following 2 rules must be respected:

1re ruler, the increase in rent shall not exceed 50% the difference between the following amounts:

  • Amount of rent determined by reference to rents in the neighborhood for comparable dwellings
  • Last rent applied to previous tenant, if applicable revised on IRL if not done in the last 12 months

2e ruler, the new rent may not exceed reference rent plus in force on the date of signature of the lease.

You can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

How do I challenge the new rent?

If the new rent exceeds reference rent plus in effect on the date of signature of the lease, the tenant can contest by sending a letter with acknowledgement of receipt to the owner (recommended approach).

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

If the commission's intervention fails, the tenant may bring the matter before the protection litigation judge the court on which the dwelling depends.

Rent supplement

Conditions

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

  • The accommodation has particular characteristics (location, comfort)
  • The base rent (excluding expenses) is equal to reference rent plus

Warning  

For a lease is signed since August 18, 2022, the rent supplement is prohibited if the dwelling has at least 1 of these characteristics: sanitary on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows that allow air to pass abnormally (without ventilation grate), facing less than 10 m, infiltration or flooding from the outside, water drainage problems in 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 base rent and the rent supplement.

The amount of the rent supplement and the characteristics of the dwelling justifying it must be indicated in the lease.

Challenge

The tenant can contest the rent supplement by first seizing the departmental conciliation commission 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 receipt of the commission's opinion to ask, protection litigation judge of 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  

in case of mobility lease, prior recourse to the Conciliation Committee is not possible. But it is possible to call on the conciliator of justice.

Base rent

Base Rent Amount

The base rent (rent amount excluding expenses and excluding rent supplement) must not exceed reference rent plus in force on the date of signature of the lease.

Warning  

When the lease is signed on or after August 24, 2022, and relates to a Class F or G dwelling (class indicated on the DPE: titleContent), on base rent shall not exceed the rent charged to the previous tenant.

You can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

If the base rent exceeds reference rent plus, the tenant may ask the landlord for a rent reduction (rent-reduction action).

The tenant may address this proposal to the landlord:

  • Either by registered letter with acknowledgement of receipt
  • Either by act of commissioner of justice (formerly act of bailiff)
  • Either be delivered by hand in return for receipt or receipt

The proposal should contain the following elements:

Rent information

The lease shall indicate:

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

you can see the increased reference rents using this simulator:

Montpellier: Estimate benchmark rents (lease signed after June 2022)

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 formal 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 response or in case of refusal of the owner within this period, the tenant can seize within 2 months the protection litigation judge the court on which the dwelling is dependent, to obtain a rent reduction, if necessary.

Rent supplement

Conditions

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

  • The accommodation has particular characteristics (location, comfort)
  • The base rent (excluding expenses) is equal to reference rent plus

Warning  

For a lease is signed since August 18, 2022, the rent supplement is prohibited if the dwelling has at least 1 of these characteristics: sanitary on the landing, signs of humidity on some walls, DPE: titleContent Class F or G, windows that allow air to pass abnormally (without ventilation grate), facing less than 10 m, infiltration or flooding from the outside, water drainage problems in 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 base rent and the rent supplement.

The amount of the rent supplement and the characteristics of the dwelling justifying it must be indicated in the lease.

Challenge

The tenant can contest the rent supplement by first seizing the departmental conciliation commission 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 receipt of the commission's opinion to ask, protection litigation judge of 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  

in case of mobility lease, prior recourse to the Conciliation Committee is not possible. But it is possible to call on the conciliator of justice.

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