The landlord<\/a> In recent years, landlords have faced restrictions on their freedom to set the rent they propose for their properties located in high-demand areas, particularly in Paris, whether in the form of rent caps or therent control<\/a>. Our real estate agency Century 21 Auteuil Immobilier<\/a> in Paris's 16th arrondissement sheds light on the issue.<\/p>\n First, let\u2019s note that this applies only to residential leases where the property serves as the tenant\u2019s primary residence, whether under a lease for an unfurnished unit or furnished lease<\/a>.<\/p>\n For many years now, landlords have been subject to a cap on rent increases between tenants. When a tenant moves out, the landlord may not increase the rent (excluding utilities)* (*the rental expenses<\/a> (are, however, subject to adjustment based on their actual cost)<\/em> unless the rent is adjusted (based on the INSEE Reference Rent Index (IRL)), if this has not been done within the last 12 months, or significant improvement work is carried out (as opposed to simple maintenance).<\/p>\n The rent cap does not apply only in the following cases, when the landlord:<\/p>\n In any case, this is only feasible if the dwelling\u2019s primary energy consumption is less than 331 kWh per square meter per year. It should be noted that rents for properties classified as F and G have been frozen since August 25.<\/p>\n As a reminder, rent control was incorporated into the 3DS Act (Decentralization, Differentiation, Deconcentration, and Simplification), adopted on February 9, 2022, which was initiated by the ALUR Act of 2014. This mechanism involves setting a maximum rent per square meter applicable to new leases, known as the \u201creference rent.\u201d<\/p>\n When a landlord first rents out a property located in a high-demand area, they will also be subject to rent control regulations. The new rent must fall between the reference rent reduced by 30% and the maximum rent increased by 20%. An additional rent payment may be considered and could therefore exceed the maximum limit. subject to<\/strong> with location or layout features that are more or less exceptional (beautiful view, duplex, large terrace, etc.).<\/p>\n Lthe municipalities located in<\/strong>\u00a0<\/strong>\"High-demand areas\" are municipalities where the number of rental units available is significantly lower than the number of people seeking to rent a home as their primary residence..<\/em><\/p>\n For any additional information, our team is here to answer all your questions about your real estate projects\u2014whether you\u2019re selling, buying, or renting. Please feel free to contact our two real estate agencies, CENTURY 21 Auteuil Immobilier and CENTURY 21 Auteuil Seine, by phone at 01 42 15 16 21 or 01 56 07 16 21, or by email: auteuil@century21.fr<\/a> or auteuilseine@century21.fr<\/a><\/p>","protected":false},"excerpt":{"rendered":" The rules governing rental rates in Paris.<\/p>","protected":false},"author":0,"featured_media":2220,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marche"],"acf":[],"yoast_head":"\nRegarding the cap:<\/h2>\n
\n
With regard to rent control:<\/h2>\n
\nBelow is a link where you can find the reference amount for rent controls in the \u00cele-de-France region: Rent Control in \u00cele-de-France (developpement-durable.gouv.fr)<\/a><\/p>\n\n