Landlord or tenant: what changes have been made since the new rent controls came into force in Paris?

When renting, the basic rent offered (excluding charges and rent supplement) may not exceed a maximum amount (the increased reference rent) per square metre, which varies according to the district, the type of tenancy (empty or furnished), the number of rooms and the date of construction of the property.

Already introduced for the first time between 2015 and 2017 under the ALUR law, the rent control system has been reinstated since 1 January 2019 underarticle 140 of the ELAN law.

Whether you are a tenant or a landlord, you need to be aware of these provisions so that you can defend your interests throughout the lease, from the moment it is signed to its termination and renewal.

When the lease is signed

If you are a tenant:

The rent control system requires landlords to include the median reference rent and the increased reference rent defined by the annual prefectoral decree in the rental contract. This enables you to check that the base rent complies with the ceiling imposed by the city.

If the lease does not include this information, you must give the landlord formal notice to rectify the situation within 1 month of the effective date of the lease (date of handover of the keys and the initial inventory).

If you do not receive a response from your landlord within 1 month, or if your landlord refuses to do so, you have 3 months from the date of the formal notice to take your case before a court to request a reduction in the rent.

Similarly, if the landlord asks you to pay a rent supplement in addition to the basic rent, the amount of the supplement and the characteristics of the property that justify it must also be stated in the tenancy agreement. If you do not agree with the amount, you have three months from the date of signing the lease to refer the matter to the Commission Départementale de Conciliation.

Please note that referral to the Commission is a prerequisite for any referral to a court.

If there is no conciliation, you have a further three months from receipt of the opinion of the departmental conciliation committee to apply to the court for the rent supplement to be cancelled or reduced.

The lawyers at Cabinet Goldwin will check that your lease contract complies with the law and will assist you before the various courts.

If you are a landlord:

Although the rent control system prohibits you from applying a base rent that is higher than the increased reference rent, there is nothing to prevent you from asking your tenant for a rent supplement if your property has special location or comfort features (for example, if it has a large terrace, an exceptional direct view of a monument, luxurious fittings, high ceilings, etc.), provided that the amount and the features of the property justifying it are mentioned in the rental agreement.

A rent supplement cannot be requested if the property has any of the following characteristics:

• sanitary facilities on the landing ;
• signs of damp on certain walls
• an energy performance level of class F or class G within the meaning of article L. 173-1-1 of the French Construction and Housing Code;
• windows that allow abnormal amounts of air to pass through outside the ventilation grille;
• a neighbouring building less than ten metres away;
• seepage or flooding from outside the property;
• water drainage problems in the last three months;
• a damaged electrical system;
• poor exposure of the main room.

If your tenant disputes the rent supplement, the lawyers at Cabinet Goldwin will help you to justify it.

• Independently of the rent supplement, you can increase the rent each year in line with the rent reference index (IRL). To do this, you need to include a rent review clause in the lease.

When renewing the lease

When renewing a lease, the setting of the new rent is also subject to specific rules.

If you are a tenant:

If your rent is too high, you can propose a new rent. Please note that this request must be made at least 5 months before the end of the lease.

If you disagree, or if the landlord fails to respond to your request to reassess the rent, you may refer thematter to the Commission Départementale de Conciliation (Departmental Conciliation Board)4 months before the end of the lease.

Failing conciliation, the matter may be referred to a court before the end of the lease.

At present, given the recent nature of the ELAN Act, there is still a lack of clarity in the case law regarding the tenant’s right to apply to the courts for the retroactive repayment of overpaid rent, in addition to a reduction in the rent.

The lawyers at Cabinet Goldwin will do everything in their power to obtain the best possible outcome for you.

You should be aware that your landlord cannot give you notice to quit if you are seeking a rent review when you renew your lease. If he does, you must take him to court to challenge the validity of the notice. Goldwin’s lawyers can also help you with this process.

If you are a landlord:

If your rent is lower than the reduced reference rent, you can offer the tenant a rent increase, taking into account the reference rents for the current year.

You must inform the tenant of the rent revaluation at least 6 months before the end of the lease.

In the event of disagreement, or if the tenant fails to respond, you may refer the matter to the Commission Départementale de Conciliation (Departmental Conciliation Board) 4 months before the end of the lease.

Failing conciliation, the matter may be referred to the courts before the end of the lease.

Please note that the tenant may contest the proposed rent increase by comparing it with the rent usually charged in the area for comparable accommodation.

The lawyers at Cabinet Goldwin will defend your interests at every stage of the procedure.

Conversely, if your rent is higher than the increased benchmark rent, your tenant can bring an action to reduce the rent. However, if your tenant does not comply with the time limits set out in the rent reduction action, and if the matter is not referred to the court, the lease is automatically renewed on the same terms as the previous rent, possibly revised in line with the rent reference index (IRL).

And once the lease has been terminated?

The Paris Court of Appeal very recently confirmed that tenants are not entitled to claim reimbursement of rents in excess of the ceiling if they do not prove that they took the necessary steps during the term of the lease.

For more information about your rights as a landlord or tenant, please contact our team of lawyers.