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Home » True or false: a landlord has the right to freely set the rent
Business

True or false: a landlord has the right to freely set the rent

By News Room22 May 20263 Mins Read
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True or false: a landlord has the right to freely set the rent
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Can an owner freely set the amount of rent for the rented property between two different tenants regardless of the city where it is located? It’s wrong. In fact, the law of July 6, 1989 on housing rented for use as a main residence indicates that “the setting of the rent for housing rented is free” (article 17). “ But exceptions to this principle have multiplied, notes Sylvain Grataloup, president of the UNPI. Then applies the rent freeze upon re-rental “. What is it precisely?

This is theinability to increase the rent of accommodation left by its last tenant less than 18 months ago, unless a simple rent review is applied according to the rent reference index (IRL) which has not been carried out in the last 12 months. How many cities are affected? Approximately 1,430 municipalities located in 47 so-called tense urban areassuch as Île-de-France, Nice, Montpellier or Lyon, which represent 4% of the number of municipalities in France but concern approximately 40% of the French population and the total number of housing units (rented or not) according to the Ministry of Cities and Housing (“The new zoning of the tax on vacant housing”September 2023).

Exceptions to the rule

If he wants to escape the rule, the owner must justify that the last rent was clearly undervalued or that improvement work has been carried out or decency for an amount greater than six months’ rent. “ Please note, this possible increase remains capped according to Decree No. 2017-1198 of July 27, 2017. (relating to the evolution of certain rents in the context of a new rental or lease renewal), adds the president. Exceptionally, owners who can justify having carried out improvement work worth more than one year’s rent in the last six months can freely increase the rent. “.

In addition to the freezing of rents upon relocation, 70 municipalities are also affected by a rent control by prefectural decreethat is to say at the request of local authorities. In these territories, it is not possible to increase the rent between two rentals and it is prohibited to exceed the ceilings set by decree. “ In many cases, when rent control is recent, this may force the landlord to lower the rent upon the arrival of a new tenant. », relates Sylvain Grataloup. In the event of non-compliance with this framework, a tenant has recourse: he can request a reduction in the rent directly from the lessor, then contact the departmental conciliation commission or the judicial court to obtain reimbursement of the overpayment.

Pay attention to the DPE

Finally, outside of tense communities, a landlord can freely increase the rent between two tenants to the extent that the market permits. In tense areas as elsewhere, the law of July 6, 1989 excludes any possibility of increase if the accommodation is classified F or G.

If there was talk of removing these properties from the rental market, Prime Minister Sébastien Lecornu announced at the end of April a bill to facilitate their temporary rental. In return, owners will have to commit to carrying out energy improvement work within three to five years.

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