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Here is the French Property Company's guide to the French landlord/ private tenant situation. Here we are talking about normal unfurnished long term leases (minimum three years).
The Owner wishes to continue the rental on the same terms The owner does nothing. The lease is renewed for a period of three years if the owner is an individual, 6 years if the owner is a company. The rent can only be increased by the average variation over 4 quarters of the INSEE Cost of New Construction index, as long as there is a condition to that effect in the original lease. There is no need to draw up a new lease: the rental is subject to the terms of the original lease.
The Owner wishes to draw up a lease of less than three years If the owner is a private individual, he can propose a lease with a term of less than three years, with a minimum of one year, if a precise event obliges him to regain possession for professional reasons or family (example:- retirement, need to house a family member) He must give notice to the tenant 6 months before the expiry of the lease. A new lease i.e. drawn up; it must state the precise event which justifies the term of the lease being less than three years. The owner must confirm to the tenant when that event will happen two months before the end of the lease by registered letter with delivery receipt. or by the hands of a bailiff.
The Owner proposes renewing the lease with a new rent. The length of the lease must be three years, if the owner is an individual and six years if the owner is a company. The owner can propose an increase in the rent, only if the rent is obviously undervalued with regard to rents for similar properties in the same neighbourhood.
He must make his proposal to the tenant at least six months before the end of the lease.
Or the tenant does not accept the proposed new rent: he states that he does not agree, in writing, to the owner four months before the end of the lease, or he does not answer at all. The owner or the tenant can, without any fees or charges, put their case before the 'commission départementale de conciliation', which usually has its offices at the local Prefecture or the DDE, either in writing sent by registered post with proof of delivery or delivered by a bailiff. The 'commission de conciliation' will summon both parties and try to find an agreement. At this commission, the tenant can show his own examples of comparable rents etc... The commission will give an opinion in a maximum delay of two months. - If no agreement is reached before the expiry of the lease, the owner should go to a 'juge d'instance'. The renewal of the lease can take the form of a written contract or, if the initial lease conformed to all legal requirements, of a simple avenant mentioning the amount of the new rent. In all cases, whatever the renewal conditions, there can be no increase in the size of the security deposit paid by the tenant when he first took possession. During the lease, only the tenant has the right to stop renting and quit the property. If the owner wants to take possession of his property before the end of the lease, he can only do it if the tenant is in breach of the lease agreement.
He can do it, but only in the following cases, be it for him or a member of his family to occupy the property as a principal residence, be it to sell the property, or for a serious and genuine and legitimate reason ; notice must always be given at least six months before the end of the lease. The owner takes possession of his property to occupy it He can take back possession to live in it himself, or to be lived in by any of the following: - his wife/husband, common law wife of at least one year's standing, the partner to whom he is tied by a PACS, his antecedents, his descendants or those of his wife/husband, or of his common law wife/husband, or of the partner to whom he is tied by a PACS. He must give notice to the tenant explaining the reason for ending the lease and the names and addresses of the beneficiaries who are going to live in the property.
The owner sells his property
The tenant has the first option on buying.
The offer is valid for the two months following on from the formal legal notice of offer.
The owner has a serious, real and legitimate reason Non compliance by the tenant with the terms of the lease (repeated late payments, not maintaining the property, troubles with the neighbours …) can constitute a legitimate and serious reason for giving notice. The written notice must state the alleged reason. What ever the reason for notice being given by the landlord, if the tenant leaves the property before the end of the notice period, he only pays rent and other charges for the period when he actually occupied the property.
Special attention should be paid to the formalities
The tenant can end the lease by giving three months notice at any time in the lease...
. Even if the tenant leaves the property before the notice period has expired, the tenant must pay the rent and charges for the full notice period unless in the meantime a new tenant has, with the landlord's agreement, taken possession.
Disclaimer. This is published as information only; we take no responsibility for the legal exactitude of the above article.
If you would like more information or have any questions please contact our leaseback and property investment desk
Rob Thorne of the French Property Company Ltd |
Telephone: Fr 0467 24 53 59
Fax: FR 0826421562
www.moving-to-france.com