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Maximise your rental income!

Can I Rent My Apartment at Any Price I Want?

As soon as you wish to proceed with the rental of accommodation, take into consideration the rules in force. Indeed, the rent for accommodation rented under a residential, student or mobility lease can be freely set by the owner, at least in theory. Certain cities belonging to tense areas must take into consideration rent control. Thus, it is impossible to exceed a ceiling defined by the prefecture of the city concerned.

The rental price can be set by the owner, but there are many factors to consider.

How to determine the amount of rent for a first rental in a tense area?

At first glance, setting a rent remains extremely simple based on the market price. Unfortunately, this approach is not possible in a tense area due to rent control. As part of a first rental, the owner has the right to freely set the amount. Each year, a revision remains possible, provided that this specificity is included in the lease.

Vigilance all the same on certain exceptions, because when the lease was established after August 24, 2022, the revision of the rent is impossible when the accommodation benefits from the F or G energy label in the DPE. Same observation for Mayotte, Reunion, Guyana, Martinique and Guadeloupe for the signing of a lease after July 1, 2024.

The situation is different for the renewal of the lease. The rent increase can be done, on the sole condition that the property concerned is undervalued in relation to the reality of the market. Remember, however, that it is impossible to renew a mobility lease and therefore the exception only concerns a student lease or a residential lease.

Sometimes, a long period of vacancy occurs between two rentals, because you have undertaken work or because you have not had time to look for another tenant. After 18 months of vacancy, you enter a particular framework and the next rental must imperatively indicate to the new owner the amount of rent from the previous occupant. The date of signing the lease remains decisive in determining the increase in rent.


How to determine the price of renting your apartment outside tense areas?

When the accommodation does not belong to a tense area, the rules are simpler, because you freely set the amount of the rent, whether it is a furnished or empty accommodation, because you are not concerned by rent control. Once again, the annual review of the rent remains possible each year, by including this possibility in the lease initially signed. On the other hand, the same rules apply for accommodation classified F or G. That is to say, it is impossible to revise the rent when the lease was concluded after August 24, 2022. The same rules apply. apply for overseas departments provided that the lease is established after July 1, 2024.

When the lease is renewed, you may wish to increase the rent and you must once again follow a very specific procedure. Don't forget to include the annual rent review in the initial lease, otherwise your tenant will keep exactly the same rent.


Take into account the rent cap in Paris

Since July 1, 2019, it has been impossible to ignore rent control in Paris. Moreover, other cities apply exactly the same process and therefore we advise you to take a closer look. So, you must both respect the rent increase limit at the time of re-renting, while ensuring that the reference rent in Paris is respected depending on your accommodation. That is to say the location of it, the year of construction of the building, the number of habitable square meters and its characteristics. In certain cases, you apply the increased reference rent, but only when you are able to justify it.

In the event of non-compliance with this ceiling, the penalties are particularly heavy for owners. You will face a fine of €5,000 when you rent as an individual. A legal entity is liable to a fine of a maximum amount of €15,000. Therefore, you must consult the reference rent map in Paris before renting your property.

Paris has a rent ceiling and exceeding it can result in a significant fine.

What criteria should you use to set the amount of rent for your apartment?

Beyond the regulations in force, do not hesitate to take note of the real estate market to try to get a more precise idea of the value of your property. Obviously, rely on neutral criteria such as its location, the general condition of the property and the surface area. Rest assured, this process remains very simple by browsing real estate advertisements on the Internet.

Even if the accommodation is located in a tense area, you are authorized to apply the increased reference rent from the moment you are able to justify it. Indeed, you have determined that your apartment is in better condition than nearby accommodation. You have undertaken energy renovation work and therefore it benefits from better insulation. The apartment is connected to numerous infrastructures such as shops, schools and public transport. Finally, the co-ownership benefits from superior equipment with a concierge, an elevator and even an interior courtyard.

As you can see, there are many criteria and it is not always easy to find your way around. Rather than wasting time carrying out your investigation, do not hesitate to rely on the advice of a real estate expert. Indeed, this is an excellent step on your part to understand the reality of the market and thus fully justify the increase in rent.

In other words, it is a way to optimize your investment, while being in perfect compliance with current legislation.



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