rent control is gaining ground

In Lyon and Villeurbanne, rent control has been in effect since the beginning of November. Details with Charlie Cailloux, legal advisor for the real estate site PAP.fr.

franceinfo: As in Paris and Lille, do you therefore have to respect rent ceilings when renting accommodation in these cities?

Charlie Cailloux: Absolutely yes! After Paris, Lille, the towns of Plaine communes in Seine-Saint-Denis, it is now the turn of the towns of Lyon and Villeurbanne to apply rent ceilings for all empty and furnished rentals as the tenant’s main residence: This therefore concerns conventional leases but also all student rentals and mobility leases.

Concretely, will these rent ceilings really lower rents?

In any case, a brigade of eight agents will be responsible for ensuring the correct application by checks, support but also penalties, if necessary (the law provides for a fine of 5,000 euros for the most recalcitrant owners).

And if you look at the rental advertisements, you will see that in Lyon, as in all large cities, there is a lot of furnished accommodation (very well furnished) which before the health crisis was devoted to tourist rental. These homes, which are now rented out year-round, are very expensive and will take the full force of the rent ceilings (some homes are offered 300, 400, 500 euros above the ceiling).

It should be remembered that the owner has the right to rent above the ceiling if the accommodation has characteristics of location or comfort!

Yes, this is called the rent supplement, but beware, in the spirit of the law, this supplement can only be exceptional. This can be supplemented if the accommodation has a nice view, or if it has a terrace or particularly luxurious equipment, for example.

And even when it does, it cannot authorize the owner to make an unreasonable supplement. But in reality, as the contours of the rent supplement are vague and imprecise, the tenant is not in a strong position to challenge.

These management rules in Lyon and Villeurbanne apply to all contracts signed since November 1. But what about all current contracts?

Tenants in place cannot immediately benefit from the rent ceilings. On the other hand, they can send the owner a request for a reduction in the rent, five months before the end of the contract. The expiry of the contract is the anniversary date of entry into the premises in furnished rental, and it is every three years in empty rental.

Other cities have requested the application of rent ceilings ….

Yes, the rent framework will apply in nine municipalities in eastern Paris from December 1, and in Bordeaux and Montpellier, early next year.