Having come into force in Paris on 1 st August 2015 and then suspended two years later, rent regulation applies yet again to rentals in Paris starting on July 1, 2019.
This measure concerns both furnished and unfurnished rentals where the property is leased for the first time or whose lease must be renewed with a new contract. This new regulation applies to leases signed as from 1 July 2019. However, current tenancy agreements and those which will renew automatically will not fall within this framework: a tenant who signed a lease before the deadline of 1 July cannot to claim a review of his rent.
Three types of reference points with respect to the level of rent which can be charged has been speficied and fixed by decree:
- a lower limit of the proposed reference rental level (equivalent to the reference rent -30% of the latter)
- a reference limit
- a higher limit of the proposed rental level (equivalent to the reference rent + 20% of the latter)
The rent requested by the owner cannot exceed the higher limit.
Under the new rules, the lease must specify the reference rental level and the level which has been applied on this specific lease.
The 80 districts of Paris are grouped into 14 geographical sectors. The rent level is fixed according to the area where the property is located, the number of rooms and the period of construction of the building.
An interactive map has been put online, allowing to check the reference rents by address.
Recap of the salient points:
- tenancy agreements for a primary residence
- Unfurnished or furnished rentals
- Leases as of 1 st July 2019
- The rent cannot be re-negotiated for leases signed before this date
- Rental levels are calculated excluding charges
- Obligation to specify reference rents in the rental agreement