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Rent Regulation - Paris Reference Rent by Owner Paris

For the past 33 years, Paris rent is dedicated to luxury furnished short- or long-term rentals in Paris for professionals, where there are famous monuments such as the Eiffel Tower or the Notre Dame Cathedral. Since the Corona event and reduced air traffic, the Paris rent control company has rebounded by adapting to a new clientele, "primary residence" tenants. However, renting as a "primary residence" requires a rental agreement and the tenant to separate the rent from the short- or long-term rental fees and to respect a calculation rule to evaluate this rent. Here is some information on the Paris rent regulations to further inform you on renting as a "primary residence".


After Covid the rent control had to adapt to the new clientele.

What is rent control in Paris, France?

First implemented by the Alur law, the short- or long-term rental framework was stopped, then reintroduced by the Elan law, applying to municipalities that wish to do so, and subject to certain criteria. These criteria consider the significant differences between private and public owners and the low rate of new construction around the city. As a result, since November 25, 2018, municipalities can limit the rent "slack" while delivering an increased reference rent not to exceed.


The majority of municipalities that apply the rent framework are located in the region where it is located the Eiffel Tower and among the largest cities, only Paris and Lille have adopted it to date. Rents are set each year before the summer, depending on the type of accommodation (empty or furnished), the number of rooms and the construction date of the building.


How rent control works in Paris

In Paris, rent control is imposed by regulations according to which the rent is freely determined within a limit defined by a reference rent that is increased, fixed and updated each year by a decree. A system of experimental rent control over a limited period of time was at the origin of the creation of today's framework. The reference rent is close to a median rent, determined in relation to the short- or long-term rental levels observed in certain categories of geographical areas and certain housing units.


The reduction of the reference rent corresponds to 70% of the reference rent while the increase of the reference rent corresponds to 120% of the reference rent. However, it is possible to agree on a rent supplement, in addition to the base rent, defined by both parties to the contract. This supplement can only be accepted if the accommodation has a justified characteristic of comfort or location in comparison to similar geographical accommodation.



Parisian life a le marais.

Why estimate the rent in Paris?

Before renting your furnished apartment or house, it is in your interest to do so at the right price. This is why an initial short- or long-term rental estimate is absolutely essential by taking note of the market prices. If it is your property, you may naturally tend to overestimate its price. If the short- or long-term rental price is not in line with the market, you may find it very difficult to find a tenant.


So learning how to make a rental estimate is absolutely essential and you should first base yourself on the reference rent per square meter (refer to the explanations on the website https://www.service-public.fr/particuliers/vosdroits/F13723. But this does not exempt you from doing a manual apartment search. Once you know the location of your short- or long-term rental property, you should take note of the existing listings near you. This way, you can determine the average rental price and use it to determine your rent. You should still be realistic and compare similar properties in terms of size and services.


You can use online tools or do your own research in order to estimate your rent.

Using a rent simulator

On the Internet, you will find many sites that provide you with a real estate rent simulator in Paris. Generally speaking, this type of tool has been developed by specific engineers with an algorithm fed by hundreds of furnished apartments in the French capital. This is public data that has been directly extracted from real estate ads. Instead of doing everything yourself, you can use an estimator.


Using them is particularly easy, because you just have to indicate the address of your property. You also indicate whether it is a furnished or unfurnished property, its surface area, the number of rooms, the year of construction, the floor of the property, whether you have a cellar, a terrace or a garage.


From the different information you have entered, you will get the rental value of your property. But once again, this is an indicative value and not a reality. We therefore warn you about the results you may get and we advise you once again to go through professional agencies to determine the precise amount of rent.



The heart of paris has many shops

Why work with an agency that specializes in property short- or long-term rentals in Paris?

UpperKey is a recognized property management agency in Paris and many other French cities. Indeed, estimating furnished or unfurnished rent can seem like a real headache when you're not in the business. While it's always possible to do it yourself, you can lose a lot of time if you don't use the right tools. In addition, you may determine an incorrect rent amount, i.e. too low, which could negatively impact your return on investment.


In addition, if you decide to manage the tenant yourself, a lot of time and energy will be required. Once the rent is determined, you will have to ensure the publication of your advertisement and answer the numerous requests. You must manage the various administrative formalities and, of course, ensure the inventory of fixtures at the time of arrival and departure of your tenant.


In the meantime, they may also ask you for various administrative or technical procedures. In case of unpaid rent, you may encounter many financial difficulties. So to avoid these various setbacks, you have the option of working with UpperKey. The agency takes care of everything, i.e. the estimation of the rent amount, while taking into account the rent framework of the Paris region. But above all, you are guaranteed to have your income on a regular basis without worrying about your tenant.


How to calculate the regulated rent ?

The monthly rent to be applied calculates the "reference rent" per square meter indicated for the accommodation multiplied by the number of square meters of living space. The calculation only applies to the rent itself, always excluding charges. The amount of the rental fee is set according to the tenant's rented accommodation costs. These costs are added to the rent.


Be aware of the details when calculating your rent.

How do you define the rental fee?

In addition to the regulated rent, the tenant pays his or her share of building costs, more often referred to as rental charges. These charges are either a fixed price or a provision. If the tenant opts for the provision, the amount of the charge will be revised at the end of each rental year based on the IRL index, just like the rent. The fees are calculated on the fee accounts transmitted by the trustee after validation of the accounting at the condominium meeting. Owners receive their account from the trustee at the end of the year, with the amount of the recoverable tenant.


Be sure to include the lots to be accounted for (for example, the cellar or utility room if rented with the furnished apartment) and divide the amount by twelve to get the monthly rental fee. Your property manager's statement of accounts will differentiate between rent and rental fees. In furnished long or short-term rentals, it is possible to apply the flat rate option, which remains fixed.




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