Rent revision under lease (private sector housing) - Annual Review

Verified 01 juillet 2024 - Directorate for Legal and Administrative Information (Prime Minister)

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The owner (or real estate agency) of a rental unit with a rental agreement may revise the rent once a year, if a clause in the lease so provides.

Warning  

  • In the metropolis, when the lease is signed, renewed or tacitly renewed since august 24, 2022, and it concerns a dwelling classified as F or G (classification indicated on the DPE: titleContent), it is forbidden to revise its rent.
  • In Guadeloupe, Guyana, Martinique, Reunion and Mayotte, when the lease is signed, renewed or tacitly renewed since 1er july 2024, and it concerns a dwelling classified as F or G (classification indicated on the DPE: titleContent), it is forbidden to revise its rent.

The date of the IRL to be taken into account is the date indicated in the lease. This may be the annual end date of the lease or another date agreed between the landlord and the tenant.

If the date of the IRL to be considered is not indicated in the lease, the date of the last IRL published by theInsee: titleContent at the time of signing the lease.

Warning  

  • If a rent supplement applies, the amount of rent is equal to the total of the base rent and the rent supplement.
  • For a furnished dwelling, if the charges are payable on a flat-rate basis, this amount can be revised each year according to the same rules as those for rent revision.
  • For a home governed by the law of 1948 or contracted Anah , the rent review rules are specific.

The Rent Benchmark (IRL) is used as the basis for calculating the rent revision. The annual rent increase is capped by the year-over-year evolution of the IRL.

To calculate the revision of the monthly rent amount, the landlord (or real estate agency) needs the following 3 elements:

  • Current monthly rent amount
  • IRL of the reference quarter (provided for in the lease or published by theInsee: titleContent at the time of signing the lease)
  • IRL for the same quarter of the previous year.

The calculation consists of the following operation:

New rent = rent in progress x new lease quarter IRL / IRL for the same quarter of the previous year.

Example :

A lease signed in the metropolis on July 20, 2023, and fixing the monthly rent to €600may be revised on 20 July 2024.

The last index published on the date of signature of the lease is that of 2e quarter 2023 140.59.

The new index published on the revision date is 2e quarter 2024 145.17.

July 20, 2024, date of 1re rent revision, the new rent amount must be calculated as follows: €600 x 145.17 / 140.59 = €619.55.

FYI  

The result of the calculation shall be rounded to the nearest 2nd decimal place.

To do this calculation, you can use the following simulator:

Calculate your rent revision

The annual rent review may be conducted within one year of the date of the rent review.

The rent review does not apply retroactively, but only from the date of the application.

When the one-year period has elapsed, the unapplied revision is lost for the owner.

Example :

If the rent review date is March 13, 2024, the landlord can review the rent until March 12, 2025.

If the rent review date is March 13, 2024, but the landlord only applies on June 13, 2024, only rents collected from that date can be increased.

In the event of a calculation error, the tenant can challenge the increase set by his landlord.

The process consists of 3 steps:

1. Formal notice

It is advisable to send the owner (or the real estate agency) a registered letter with acknowledgement of receipt.

You can use this document template:

Dispute the amount of a rent revision during the lease

2. Conciliation

In case of refusal (or lack of response) by the owner (or real estate agency), it is possible to initiate a conciliation with the help of the departmental conciliation commission (CDC) or a conciliator of justice. Where the amount of the dispute is less than or equal to €5,000, such conciliation is compulsory in order to be able to refer the matter to the court.

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To enter the CDC

The CDC must be seized by registered letter with acknowledgement of receipt.

This letter should be addressed to the CDC of the department where the dwelling is located.

Who shall I contact

To appeal to a court conciliator

Who shall I contact
3. Refer the case to the judge

In the event of a dispute over a annual rent review, the tenant or landlord (or real estate agency) has 1 year to refer the case to the protection litigation judge from the date of the rent revision.

Who can help me?

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