Seine-Saint-Denis and Paris: rent control poorly respected

In Seine-Saint-Denis (93), 47% of housing rental advertisements do not respect the rent control ceiling, reveals the national association for the defense of consumers and users CLCV (Consommation Logement Cadre de vie) in its investigation Rent Regulation 2024published in September 2024, covering 800 advertisements in Seine-Saint-Denis, and 1,000 in Paris. “This is one of the lowest compliance rates ever, after 2018.”

A specific device

The rent control system concerns rentals of unfurnished or furnished accommodation as long as they constitute the tenant's main residence, the premises having to be occupied 8 months per year, except in special cases (professional obligations, health reasons, etc.). It does not apply to seasonal rentals or company accommodation. The system studied here is the one that applies specifically to Paris and, in Seine-Saint-Denis, in the areas of Est ensemble and Plaine commune. The following municipalities are therefore affected: Aubervilliers, Bagnolet, Bobigny, Bondy, La Courneuve, Épinay-sur-Seine, L'Île-Saint-Denis, Les Lilas, Montreuil, Noisy-le-Sec, Pantin, Pierrefitte-sur- Seine, Le Pré Saint Gervais, Romainville, Saint-Denis, Saint-Ouen-sur-Seine, Stains and Villetaneuse. These rules govern in particular the rent supplement, the reduced and increased reference rents. The lessor who does not respect the rent control may be fined an administrative fine of 5,000 euros, at most 15,000 euros if it is a legal entity.

The situation is deteriorating especially for furnished accommodation

The year 2024 marks a setback in the proper application of rent controls, since in 2023, the rate of illegal advertisements was 31%. In Paris, the results are better with 29% of non-compliant advertisements. If we combine the Parisian and Sequano-Dyonisian announcements, the non-compliance rate rises to 37%. This trend puts an end to several years of continuous progress. Furnished rentals are the most affected, with a rate of illegal advertisements soaring to 61% in Seine-Saint-Denis, and 32% in Paris. On average, monthly rents exceed 149.83 euros in Seine-Saint-Denis. It is therefore an additional cost of 1,797.96 euros per year which is claimed from the tenant completely illegally. In Paris, the monthly additional cost amounts to 170.62 euros (2047.44 euros per year). In 93, some advertisements go much further than this average additional cost, the association has in fact raised the rent of a 20 m² studio to 1,300 euros when it could not exceed 642.50 euros, i.e. – say a difference of 657.50 euros per month, 7,890 euros per year! To justify their excess, the owners cite the argument of exceptional characteristics. But they apply it to elements which are probably not there, such as the presence of an elevator in the building, a cellar and the general good condition of the accommodation.

The explosion of furnished accommodation: an Olympics effect?

To explain this deterioration, the association sees it as an effect of the Olympic Games (OG). “Some unscrupulous landlords did not hesitate to issue notices to their tenants in order to free up their accommodation in the hope of renting it to tourists at more or less high rents.” Not to mentiona terrible yearthis decline remains no less significant, especially in an urban area which has an economically fragile population. Formerly a minority, furnished rentals are now almost on par with unfurnished rentals. For the moment, CLCV acknowledges that it is unable to conclude whether this real transformation of the market will be sustainable. The association regrets this situation which considerably limits the choice of households looking for bare rental. She also notes that large homes (3 or 4 rooms) are not immune to this phenomenon, while furnished rentals were previously traditionally reserved for studios and two-room homes. However, the compliance rate for furnished rentals in Seine-Saint-Denis is the worst score ever observed since this study was carried out. “If the compliance rate for bare rentals is just OK at 65%, it literally plummets for furnished rentals with a score of 39%.”

Abusive use of the mobility lease and the civil lease

Circumvention of the law is not limited to unjustified rent supplements. It also involves the increasing use of mobility leases. Created by law no. 2018-1021 of November 23, 2018 relating to the evolution of housing, development and digital technology, known as Elanthe mobility lease is a short-term rental contract, between 1 and 10 months, of furnished accommodation giving more flexibility to the lessor and facilitating access to accommodation, in particular, for students or people on professional mobility. In practice, these contracts are often used to circumvent rent controls, based on the erroneous principle that it is a seasonal rental. Idem for the use of “Civil Code” leases or common law leases, which are not intended for the main residence. Provided for by articles 1713 to 1778 of the Civil Code, these leases are marked by great flexibility since the parties are free to negotiate all aspects of the rental such as the duration, the notice period, the amount of the rent or the security deposit. . They can be chosen when no specific regulations are applicable, such as residential lease, commercial or professional lease.

The CLCV’s proposals

Based on these findings, the CLCV proposes three strong measures: the perpetuation of rent control. The association also calls for a ban on the rental supplement for accommodation with a surface area of ​​less than or equal to 14 m² and within the framework of a mobility lease. Finally, it recommends the creation of a standard model of classified advertisement with the establishment of sanctions in the event of non-compliance and the obligation to specify the reasons justifying the application of an additional rent.