France Rental Laws: Pro-landlord, Neutral or Pro-tenant?

French landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. While the system favors tenant security and affordability, landlords still have substantial rights regarding rent setting, lease termination (with valid reason), and property use.

Can landlord and tenant freely agree on rent?

In France, landlords and tenants can generally agree freely on the rent amount when signing a new lease. However, in certain regulated areas known as zones tendues (areas with high housing demand), rent controls apply. In these zones, there are rules limiting how much rent can be charged for new leases, lease renewals, or re-letting. Additionally, in some cities like Paris, there are specific rent caps (encadrement des loyers) that set maximum and reference rent levels landlords must follow.

Landlord can increase the rent, but there are specific rules governing how and when rent increases can occur:

1. For Existing Tenants (During the Lease):

   • Rent can only be increased at the time of lease renewal, not during the term of the contract unless the lease explicitly allows for rent adjustments.

   • Rent increases must be in line with the Indice de Référence des Loyers (IRL), which is an index published quarterly by the French government. The increase cannot exceed the rate of inflation as measured by this index.

2. For New Tenants or After Lease Renewal:

   • If the lease is renewed or the property is rented out to a new tenant, the landlord can set a new rent amount. However, if the property is in a zone tendue (an area with high demand for housing), the rent is subject to local rent controls, and the increase may be limited by local regulations.

3. In Zone Tendue Areas:

   • In areas where rent controls are in place, the landlord is restricted to setting rents within the prescribed limits or based on reference rent levels. These areas include cities like Paris, Lyon, and Marseille, among others.

Deposits

For unfurnished rentals, the security deposit is capped at one month's rent, while for furnished rentals, it can be up to two months' rent. The deposit can be used to cover damages, unpaid bills, or other tenant defaults.

After the lease ends, the landlord must return the security deposit within two months, deducting any justified costs if necessary.

What rights do landlords and tenants have in France, especially as to duration of contract, and eviction?

French law generously protects the tenant (the locataire).

In France, it's quite common to find both furnished and unfurnished apartments available for rent. Typically, unfurnished (vide) apartments are intended for longer stays and come with stronger tenant protections, usually requiring a minimum lease term of three years. In contrast, furnished (meublée) apartments are geared toward shorter-term rentals, generally involving one-year contracts and offering tenants fewer protections and less flexibility.

To legally rent out an apartment in France, the property must meet certain basic standards. It must have a minimum ceiling height of 2.2 meters and offer at least 9 square meters of living space with a window. The apartment must also include a separate bathroom, proper heating, a functioning water system, and effective drainage and guttering. Additionally, both the building and the apartment must be in a condition that does not pose any risk to the tenant’s health or safety.

A tenant may terminate the lease at any time and for any reason.

The minimum notice period depends on the type of rental:

• Three months for unfurnished properties

• One month for furnished properties

During the notice period, the tenant remains responsible for paying rent.

Landlords in France can require tenants to take out a home insurance policy to cover risks such as water damage, theft, fire, and similar incidents. Typically, it is the tenant’s responsibility to arrange this insurance, and the requirement should be clearly stated in the rental agreement.

If the tenant fails to obtain the necessary coverage, it may be considered a breach of contract, allowing the landlord to terminate the lease.

Tenants are usually required to provide proof of insurance when making their first rent payment and again each year upon renewal of the policy.

In some cases, if a tenant is not financially prepared to arrange their own insurance, the landlord may offer to organize and pre-finance the policy, with the tenant reimbursing the cost at a later date.

To avoid any confusion, the rental contract should clearly specify which taxes are the responsibility of each party. Typically, the landlord is expected to cover most of the taxes.

How effective is the French legal system?

Tenancy law is enforced before the courts. Procedures are long, the courts are saturated, and lack essential powers.

The eviction process is organized by articles 61-66 of the 9 July 1991 Act. The court decision containing the eviction must be notified to the tenant.

1. After a grace period granted by the judge (usually six months), the landlord must ask the tenant to leave through a commandement de quitter les lieux, which must contain specific information, e.g., inform the tenant that he may ask the judge for extra time in the dwelling.
2. If the judge grants a delay, by law the tenant has another two months to leave the dwelling. During this time he can ask le juge de l'execution des peines to postpone the eviction order for between 3 months to 3 years, if seriously unfair consequences could result from the eviction (family with no place to go, children out of school, etc).
3. If the tenant has not left, the bailiff can ask the préfet for police help - but no one can be evicted during winter, i.e., between November 1 to March 15.
4. The préfet can anyway refuse to grant his help, e.g., if the family is composed of many children.
5. The landlord can then (having failed to get his tenant out) go to the Administrative Courts to ask for damages, though it takes a long time to obtain them.

Legislation

The ruling legislation is the Mermaz Act of 9 July 1989. Minor modifications are contained in the 21 July 1994 Act and the 29 July 1998 Guiding Act.

Brief history: Recent changes in French landlord and tenant law

The 1981 Socialist Party victory brought the watershed 1982 Quillot Act. While previously most tenancy contracts were verbal, this act imposed a written contract, required minimum terms, and strictly limited conditions for termination.

As soon as the conservative parties returned to power in 1986, they repealed this act and passed another one. When the socialists returned to power, they too repealed the conservative act. Their 1989 Mermaz Act is the basis of the present law; modifications have not been substantive.

France encourages private individuals to build and rent dwellings. Many loans, tax subsidies and tax incentives exist, especially to build for rental to people earning less than a fixed amount. Conversely, leaving buildings empty is penalized by the taxe d'inhabitation.

Yet the housing situation is not good. "Slums are reappearing in suburbs of large cities, and more and more people have trouble finding an affordable dwelling to rent..." notes the European University Institute report on France.