From 1 July 2024, new rent ceilings will come into force in the capital. This reassessment concerns new rentals and lease renewals.
Parisian landlords will be able to increase their rent. On LinkedIn, Nicolas Peycru, associate director at Euodia, a firm specializing in wealth management, specifies: “from July 1, 2024, new ceilings for rents will come into force in Paris! Landlords will be able to apply higher rents, but only for new rentals.
Indeed, like every year, a prefectural decree published on May 28 updated the new rent amounts not to be exceeded for leases signed between July 1, 2024 and June 30, 2025. This prefectural decree sets the reference rent, the increased reference rent (equivalent to the reference rent +20%) and the reduced reference rent (equivalent to the reference rent -30%) in each district of the municipality.
Since 2019, the capital has implemented rent capping, a tool which sets rents not to be exceeded each year. The rent cap prohibits landlords from renting their property beyond a certain ceiling (the increased reference rent), from the date the measure comes into force. These are rents excluding charges. Reference rents are set based on four criteria: the neighborhood, the date of construction of the building, the number of rooms and whether the property is furnished or rented empty.
The ceilings concern first rentals, re-rentals (new tenant in a previously rented accommodation) but also lease renewals (when, at the end of the lease, the owner offers a renewal of the lease to the tenant, whether the conditions are similar or different). Mobility leases are also targeted.
A site lists all the rent ceilings
However, this cap does not apply to current leases or tacit renewals. Tacit renewals (of 3 or 6 years) occur when the tenant remains on the premises and the lessor has not expressly offered to renew the lease or take steps to recover the property.
If a lease signed during the application of a capped rent exceeds this famous ceiling, the tenant can subsequently initiate an action for a reduction in rent. The tenant makes his request at least 5 months before the end of the lease, as specified in the service-public.fr site here for example.
For more clarity, simply go to the website of the regional and interdepartmental management of accommodation and housing and enter the characteristics of the accommodation (number of main rooms, construction period, type of rental), then the desired period and finally the address of the property. This way, the tenant or owner will know the maximum authorized rent. You will then be able to see the rent ceiling that corresponds to your situation.
Beware of litigation
It is possible to exceed the ceiling via what is called “a rental supplement”, if the property has exceptional characteristics (comfort elements, view of a historic monument, etc.), as the site service-public.fr reminds us here. This legal notion remains, however, rather vague.
Nicolas Peycru also specifies: “Possibility of an increase for ‘exceptional characteristics’ such as a beautiful view or exceptional comfort, but beware of disputes! Don’t forget, tenants can contest the additional rent within three months following the signing of the lease.
