Paris rent control law

Rent control in Paris has been a system in force since 2019. It aims to regulate rent amounts in the capital by establishing a strict framework to avoid abuse and promote equitable access to housing. Rents in Paris can vary according to several criteria, but the law now imposes strict ceilings in order to limit excessive increases and to ensure fairer access to housing for all.

This regulation is part of a context of strong demand and high real estate prices, making it difficult for many households to rent. It aims to protect tenants from abusive increases and to stabilize the rental market. As a tenant or owner, it is essential to understand how this law works in order to anticipate its impacts, comply with regulations and optimize your rental investment.

‍

What is rent control in Paris?

Rent control is a measure that limits the price of rentals in certain tense areas. Paris is one of the cities concerned, with a system setting an increased reference rent that owners cannot exceed except under special conditions. The objective is to avoid soaring rents and to ensure consistency between the asking price and market standards.

This system was put in place to regulate a particularly tight real estate market, where demand is clearly greater than supply. This regulation also aims to prevent abusive practices by certain landlords who imposed rents that were disproportionate to the real value of the home. By preventing price excesses, the law makes it possible to make housing more accessible to residents while avoiding situations where the prices charged become unaffordable.

‍

How is the reference rent calculated?

The reference rent depends on several criteria:

• The location of the accommodation (city of Paris and specific districts).
• The type of rental (empty or furnished).
• The date the building was built.
• The number of rooms in the home.
• The condition of the home, including the presence of a degraded electrical installation Or of Signs of humidity on some walls.
• The presence of ventilation grill and the general state of ventilation.

Each year, a prefectural decree sets the new reference rents according to the evolution of the market. This revision makes it possible to monitor the real estate dynamic while guaranteeing a framework adapted to the realities of the field. Depending on these parameters, the rent cannot exceed a certain threshold defined by the authorities, except in justified exceptional cases.

‍

Who is affected by rent control?

All leases signed in Paris since July 1, 2019 must comply with this regulation, whether for an empty or furnished rental. The main objective is to make housing more accessible while avoiding unjustified increases that could unbalance supply and demand in the rental market.

‍

Read also: Hoguet law: definition and obligation.

‍

Exceptions to rent control

Some homes are not affected:

• Social housing (public housing, approved by APL and ANAH).
• Leases signed before July 2019 and renewed tacitly.
• Housing subject to the 1948 law.
• Vacation rentals (such as Airbnb).

These exceptions make it possible to adapt the law to specific situations where rents are already regulated by other mechanisms. However, even if a home is not affected by the law, it is recommended to check the reference ceilings in force and to learn about legal obligations to avoid any legal complications.

‍

‍

Rent supplement: A way to exceed the ceiling?

In some cases, the owner may request a Rent supplement if the home has exceptional characteristics. Examples accepted by law:

• A private terrace.
• An exceptional view of a monument.
• High-end equipment.
• An absence of Face-to-face, which guarantees better luminosity and privacy.

However, to be valid, the Rent supplement must be justified by objective criteria and clearly indicated in the lease. The owner must be able to demonstrate that these characteristics add real value to the rented property. It is also necessary that these criteria are not already taken into account when calculating the increased reference rent.

On the other hand, none Rent supplement cannot be requested if the accommodation shows signs of humidity, a degraded electrical installation Or a poor exposure. The tenant can then contest any attempt to add an unjustified supplement by referring to the competent authorities.

‍

Rights and remedies for tenants

If the rent requested by the owner exceeds the increased reference rent, the tenant can:

1. Send an email recommended with acknowledgement of receipt to the landlord to ask for a rent reduction.
2. Grasp the Departmental Conciliation Commission (CDC).
3. File an application to the court in case of non-response from the owner.

La request in force to the Departmental Conciliation Commission (CDC) must be done within three months following the Signature of the lease. The tenant can also provide a diagnosis by the Departmental Conciliation Commission (CDC) to justify its recourse.

‍

Penalties for non-compliance with the law

If an owner does not respect the rent regulations, he risks:

• A notice of regularization by the City of Paris.
• An administrative fine of up to €5,000 for an individual and €15,000 for a business.
• An obligation to reimburse overpayments to the tenant.
• An action in force at the Departmental Conciliation Commission (CDC) to decide on the amount of the rent and the possible overruns.

‍

Benefits

1. Tenant protection : Rent controls prevent abusive increases and allows tenants to access housing at reasonable prices.
2. Real estate market stability : By limiting rent increases, the measure helps to avoid a surge in prices in tense areas.
3. Balance between supply and demand : This regulation aims to promote equitable access to housing, especially for middle and modest income households.
4. Remedies for renters : In the event of abuse, tenants have several means of contestation (CDC, judicial court) to assert their rights.
5. Predictability of revenue for owners : Landlords have a clear framework for setting their rent, which reduces uncertainty about the profitability of their property.

‍

Disadvantages

1. Impact on owners : Some owners consider framing as a constraint that reduces their profitability, especially in comparison with the high purchase price of the goods.
2. Less incentive for rental investment : Some landlords may be less likely to invest in renovating or improving their properties due to rent limitations.
3. Difficulty of application : Although the system is in place, many landlords do not respect rent regulations, and tenants often have to take steps to enforce the law.
4. Possible derogations : The Rent supplement allows owners to set an amount higher than the ceiling under certain conditions, which may be subject to dispute.
5. Risk of a decrease in rental supply : Some owners prefer to remove their property from the rental market or prefer seasonal rentals to avoid the constraints of supervision.

‍

Conclusion

Rent controls in Paris aim to protect tenants while ensuring a balanced market. Tenants and owners must fully understand the rules in force to avoid disputes and optimize their financial situation. As a tenant, make sure that your rent meets the legal limits, and do not hesitate to exercise your recourse in case of abuse.

As an owner, optimize your property in compliance with the legal framework to maximize your profitability without risking sanctions. Knowing the regulations well will allow you to anticipate obligations, justify your rates and remain in compliance with legal requirements.

Check the price of your rent now on the official simulator!

‍

❓ FAQ

Which homes are affected by the rent control in Paris?

The rent control concerns all leases signed since July 1, 2019 for main residences, whether they are furnished or unfurnished. Les exceptions include social housing, housing subject to the 1948 law, vacation rentals And the assisted living.

👉 For more details: City of Paris

‍

How is the reference rent calculated in Paris?

The reference rent depends on several criteria: the localization of housing, the type of rental (empty or furnished), the number of rooms, and theConstruction year of the building. These rents are fixed each year by Prefectural decree.

👉 Consult the official ceilings on the website of the DRIHL Île-de-France

‍

What to do if the rent exceeds the legal limit?

If your rent exceeds increased reference rent, start by discussing it with your landlord. In case of disagreement, you can enter the Departmental Conciliation Commission (CDC) or take legal action. Since 2023, it is also possible to report an overtaking directly to the City of Paris.

👉 Report an overrun: Reporting service — Paris

‍

What remedies are available for tenants?

The tenant can:

• Negotiate amicably a reduction in rent,
• Seize the CDC for mediation,
• Asserting your rights in front of a Protection litigation judge.

The action must be started within 3 years after signing the lease.

‍

‍