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All you need to know about rent control in Paris

The rent control in Paris is an element to be taken into consideration when you want to start renting out your property on a seasonal basis. In addition, it is important to know that the rent control for a furnished rental must take into consideration a new rule, because the agglomeration of Paris belongs to the tense zone. Therefore, the rent for any accommodation will be determined according to the limit of an increased reference rent.

The importance of understanding rent control for seasonal property rentals
Understanding rent control in Paris is crucial for seasonal property rentals.

Some additional information about rent control and its calculation

You have taken the step and registered on the Airbnb platform. But it is impossible to ignore the rent control law if you have a property in the city of Paris.

The law focused on furnished rentals has been acted since July 1, 2019 and it is important to take it into consideration in the context of the double limit. That is, in relation to the rent that was previously paid by the tenant, but also by the law of capped rent. The latter is then calculated by the number of square meters of living space according to the prefectural order. This is a very specific rent control system that applies only to the City of Paris. Therefore, rent control in Paris is not the same as rent control in Marseille or rent control in Nantes.

So, when you buy a property to put it up for rent on the platform, you must take into consideration the rent control zone. Even if your property has never been rented before, you should know that the rent set can never exceed the increased reference rent. The latter is determined by prefectural decree and when you re-rent, the new rent will be equivalent to the rent charged to the previous tenant as long as it does not exceed the increased reference rent.

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How to determine the increased reference rent

A zone subject to rent control will be subject to rent control in relation to the same neighborhood. Several criteria are then defined each year and the amount as well. The latest one was published on June 2, 2022. Therefore, the decree only concerns rental contracts that may have been signed between July 1st 2022 and June 30th 2023.

To find out exactly what the increased reference rent is, simply go directly to the interactive map that has been set up by the Île-de-France prefecture.

To take the example of the French capital, the reference rent in Paris is established not according to 20 arrondissements, but according to 80 districts. Each district then has its own reference per square meter per month according to the following criteria:

  • First of all, the number of rooms in the apartment. First, the number of rooms in the apartment. Please note that this does not take into account the corridors, bathrooms or kitchens.

  • The second criterion is the period of construction, i.e. whether the building was built before 1946, between that date and 1970, between 1971 and 1990 or after.

  • The next criterion is the type of rental, i.e. whether it is empty or furnished. In the second case, it is an Airbnb rental.

  • Finally, the address of the apartment according to the district in which it is located.

Rent control in Paris and their calculations

There is no need to use a simulator for rent control in Paris. The monthly rent is calculated by simply multiplying the amount of the reference rent increased by the number of square meters of living space.

Calculating rent control in Paris is straightforward
Rent control in Paris is calculated by multiplying reference rent by square meters.

This means that if you rent a 40 m² unfurnished apartment built before 1946 and consisting of two rooms in the Necker district, the rent will be 32.30 € per square meter, which means that you cannot charge more than 1292 €.

If, on the other hand, the property is rented as a furnished apartment with the same criteria, it can be rented for €36.40 per square meter, which is a total of €1456 per month.

But it is important to know that the calculation only concerns the rent. Therefore, when you have to determine the monthly rent, it will not take into account the charges. The latter are in any case defined according to the provisional amount and will therefore be added to the rent.

Is it possible to request additional rent?

Based on the above data, you have been able to calculate the maximum rent. However, you may be able to obtain a rent supplement if the apartment has certain characteristics or if it is an exceptional rental.

This is called a rent supplement, but once again it must be justified. Furthermore, you should know that the rent supplement only concerns rentals that have been signed since August 18, 2022 with an energy label between A and F.

In this context, there is no need to look for a legal list of characteristics justifying the rent supplement. However, there is a list of criteria that prevent you from requesting a rent supplement:

  • If your property has a bathroom on the landing.

  • If there are signs of moisture in the walls or ceilings.

  • If the energy performance of the property has the label F or G.

  • If the property has carpentry with poor insulation.

  • If the presence of a vis-à-vis at less than 10 m.

  • If floods or infiltrations occur regularly due to a phenomenon outside the housing.

  • If water evacuation problems have been noted during the last three months.

  • If the electrical installation is not up to standard.

  • If the main room does not have a good exposure.

Why trust a concierge for the rental of a property in Paris?

A concierge service must be seen as a rental management agency when you are looking for a seasonal rental. Indeed, the reception of the tenants until their departure requires a certain vigilance and a diligent follow-up.

A concierge service provides diligent follow-up for seasonal rentals
Concierge services as rental management agency.

Moreover, you can't ignore the rules of the Airbnb platform. So for peace of mind, you delegate the entire management of your property through a concierge. The latter will be happy to manage the entire management, by writing the ad, managing contacts and of course being vigilant on the maintenance of the property.

In addition, you will receive the advice of a team of experts who will inform you about the various administrative and fiscal constraints. For example, the rent control in Paris or the 90-day rule.

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What are the potential penalties for non-compliance with the rent control law in Paris?

In the event of non-compliance with the rent control law, you have two months to return the overpayment to the tenant. This also requires the lease to be adjusted to take into account the increased reference rent.

If unfortunately you do not follow up on this adjustment, a fine of 5,000 € may apply if the rental is made with a lease attached to a natural person. If it is a legal person, in other words a rental platform or a real estate agency, the fine can reach 15 000 €.

Is it possible for the tenant to ask for a reduction of his rent ?

The tenant is within his rights to ask for a rent reduction, but only within the framework of the renewal of his lease. To do so, he must make a proposal to the landlord five months before the end of his contract.

Presenting a rent reduction proposal to the landlord for lease renewal consideration
Tenant's proposal for lease renewal consideration.

In addition, it is necessary to justify this rent decrease by insisting on the fact that the reference rent increased by 20% has decreased.

As you can see, the rules for renting in Paris are very strict. To avoid entering a market that you do not control, delegate the rental management to a concierge company like UpperKey. You can be sure that you are working with professionals who will take the utmost care of your property.

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