The rental reference index (IRL) serves as a basis for reassessing the rent of rental accommodation each year. It applies to both empty and furnished rentals. This index, published every quarter by INSEE, aims to protect tenants against excessive rent increases. Definition, value, calculation… focus on IRL in 2024.
Capital Video: What is the rent reference index?
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What is the rental benchmark index?
IRL: definition
The IRL or rental reference index is an index that allows you to reassess the cost of rent for a empty or furnished accommodation with a residential lease. This index is published every quarter. It is published by INSEE – the national statistics institute in France. It corresponds to the average change in consumer prices (excluding tobacco and rents) over the last twelve months. It serves as a mandatory basis for residential leases subject to Law No. 89-462 of July 6, 1989.
Good to know: the parties to another lease contract may decide to use this index as a reference value (if no other index is imposed by law, depending on the lease concluded).
An index that governs the increase in rents
The rent reference index governs the increase in rents. Thus, it protects tenants from an unreasonable rent increase. The amount of rent changes at the same time as their purchasing power. At the same time, landlords are guaranteed the ability to increase the rent based on the index.
To note : given that their duration is less than one year, furnished rentals which fall within the framework of a student lease or a mobility lease are not governed by the IRL.
When does the landlord have the right to increase the rent?
Request for annual housing review
In the context of rentals granted as a main residence, the rent increase can be made once a year (article 17-1 of law no. 89-462 of July 6, 1989) and at the request of the lessor (owner) . Mention of the application of the IRL and the current index at the time of signing the lease must appear in the contract.
The annual review request is not made automatically. It only occurs at the request of the lessor within one year from the date provided for in the rental contract. Since the entry into force of the ALUR law of March 24, 2014, the lessor cannot reassess the rent over several years, retroactively (article 7-1 of law no. 89-462 of July 6, 1989). The owner is required to inform the tenant of the rent increase by registered mail with acknowledgment of receipt or by bailiff’s deed. The increase comes into effect upon request for review.
The IRL sets the rent increase ceiling
The revision by the rent reference index is not an obligation for the lessor, who can waive it (particularly in the event of a negative index). On the other hand, it sets the maximum increase ceiling applicable during the rental and upon renewal of the lease (except in exceptional cases such as manifestly undervalued rent, which then results in a specific procedure).
Good to know: commercial leases are indexed to the quarterly commercial rent index.
How to write your rental lease yourself?
How to calculate the rent increase based on the IRL?
Check the date provided for in the rental contract
First of all, it is important to carefully check the date provided for in the lease contract for the revision of the index. Usually, this occurs on the anniversary date of signing the contract (in the absence of specification in the contract, this date is retained). The contract also mentions the rental reference index which will be applicable (failing this, we refer to that in force at the time of signing the contract).
View the benchmark index for the current quarter of the year
Secondly, you must obtain the reference index for the current quarter and year: they can be consulted directly on the INSEE or ANIL website (national agency for tenant information).
Calculation formula
Once these elements have been obtained, the amount of the rent increase is obtained by the following operation:
Rent excluding charges x IRL applicable on the revision date / IRL applicable to the last revision date (IRL of year n-1) = new revised rent
ANIL simulator to calculate the revision of your rent
ANIL provides tenants and owners with an online simulator to calculate the estimated amount of the rent review. Simply provide the following information:
- reference quarter of the rent reference index provided for in the lease,
- current rent amount excluding charges.
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What is the current rental benchmark index in 2024?
An index calculated every quarter by INSEE
As every quarter, INSEE publishes the latest value of the rent reference index (IRL). This coefficient sets as a reminder the maximum annual rent increases that landlords can demand from their tenants, when the lease contains an annual review clause. If the lease does not specify the index to be taken into account, the last one published on the date of signing the contract applies.
Table of the evolution of the IRL from 2020 to 2024
The latest rent reference index (IRL) was published by INSEE on July 12, 2024. This is the IRL of 2nd quarter 2024. In mainland France, it is established at 145.17. It is up (+3.26%) compared to the IRL for the 2nd quarter of 2023.
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