The civil lease, or civil code lease, in furnished rental, what is it?
What is a lease called " Civil Code"?
A Civil Code lease is a lease for a staff dwelling and a secondary residence of the tenant. It is less strict and less regulated than the principal residence lease.
This type of lease is very often used on properties considered "atypical " with, for example, a beautiful view, a large balcony or a large area.
French law being well thought out, this lease is a great advantage for owners but tenants are also well protected and will find their account.
In a Civil Code lease governed by articles 1708 and following of the Civil Code, the parties can define by mutual agreement three main points : the duration, the conditions of renewal and finally the rent.
> Empty rental or furnished rental ?
In a few words, what are the main distinctions with the residential lease?
The civil code lease is a lease derogatory to the use of residential leases governed by Law No. 89-462 of 6 July 1989 which are regulated and less flexible than civil leases.
Traditional residential leases are mandatory for the tenant's principal residences (you must stay there for a minimum of 6 months).
Inthe main elements to retain the residential lease (ordinary furnished lease law of July 6, 1989) imposes on the duration and conditions of renewal 1 year + tacit renewal / 9 months without tacit renewal (student). To terminate the lease on the part of the tenant there is a period of one month of notice to respect. When it comes from the owner it is a period of 3 months notice at the end of the lease or for legitimate reason. In the civil lease the notice periods are negotiated in the contract if the parties so wish.
For rents a classic lease also imposes rent control.
So we have a real difference between the two contracts. The civil lease is much more flexible and free than the classic housing contract.
Conductions of renewal or termination with notice
It is recalled that the Civil Code lease is a free contract and fixed by both parties. So as for these two concepts the principles are the same, depending on the conditions that have been determined in the contract, the renewal is tacit and the termination goes through the leave. The notice period then comes only in contracts of indefinite duration and it is sufficient to respect the deadlines provided for in the contract. It should not be forgotten that in a Civil Code lease the landlord never has to justify his leave.
Once again there is a real difference with the so-called classic residential lease.
The duration of the lease Civil Code
Being a very free contract that must respect the rules of common law, the duration of this lease is therefore fixed in advance by the two contractors called lessor and lessee. They can therefore choose to make a fixed-term or open-ended lease contract at the time of signing. The ALUR law then frames the termination of the lease by setting a framework.
A fixed-term Civil Code lease can end by simply laying leave that is not subject to a time limit or it can very well be tacitly renewed (it will also end by leave).
In order to be more explicit a leave, giving leave, in legal terms, corresponds to a unilateral act terminating a contract.
A Civil Code lease of indefinite duration ends at the initiative of the lessee or lessor from the moment the "holiday deadlines " are respected.
The risk of non-payment
There is a risk, even in the context of his official accommodation, that the tenant decides not to pay his rent or that he decides to stay in the premises despite the end of his mission or other. If necessary, he becomes a so-called "classic" tenant and the eviction procedure in case of non-payment remains long, although shorter than on a lease law 89.
Unfortunately unpaid rent insurance from the market does not cover Civil Code leases. You must ask the tenant for a classic guarantor, whether it is a natural person or the company that hires him.
When the lease is signed directly by the company directly, the risk of non-payment is lower, however it is necessary to remain vigilant, and check the profitability and solvency of the company (by requesting the balance sheets).
Seasonal rentals
Unlike conventional residential leases, subject to the law of 6 July 1989, seasonal rentals are governed only by the Civil Code (Article 1713 et seq.).
The duration, price and conditions of the civil code lease are freely set by both parties. This type of lease is very often used on properties considered "atypical" with for example a beautiful view, a large balcony, a large area, etc.
The seasonal lease must contain:
- Information about both parties (name, contact details, etc.)
- The exact duration of the rental (with arrival day and departure day). The tenant simply leaves the premises on the end date of the lease, without having to send a letter of notice
- The characteristics of the accommodation (address, surface area, full description, services available (example: swimming pool, parking)). It should be noted that the lessor must attach information to demonstrate that it complies with security requirements
- The price and the procedure for settling the seasonal rental
The inventory of fixtures of entry and exit must be carried out in the presence of the lessor (or his representative) and the tenant.
Several documents must be attached to the lease agreement:
- An energy performance diagnosis (DPE) if the total duration of seasonal rentals in the accommodation is greater than 4 months per year
- A state of risks and pollution
- A statement of the risks of exposure to lead (CREP) for dwellings built before January 1, 1949
The amount of rent
Here is one of the biggest advantages for owners, the civil lease is not subject to any law, as explained previously it is a free contract of common law. The rent is therefore also a part of negotiation between the two contractors. A classic residential lease is governed by the ELAN law of 2018. Here we fix the amount around the agreement.
It is a simple contract concluded between two persons (natural and legal either companies, embassies or associations).
It is therefore a definite advantage for tenants and owners. It will make it possible to be able to have a simple and relevant common law contract for both contractors unlike conventional residential leases requiring many prior conditions to be met. The civil lease has many more advantages than other leases. A tenant will not lose in practice, he can not find himself without anything overnight, he can not see the application of exorbitant amount ... It is a contract so if the negotiation is not suitable nothing obliges one of the parties to sign. It is therefore the easiest contract to carry out under French law.
You are owners and you want to know more about the civil code lease for your property, you can contact us.
- A Civil Code lease is a lease for a furnished or unfurnished dwelling and a secondary residence of the tenant.
- This type of lease is very often used on properties considered "atypical " with, for example, a beautiful view, a large balcony or a large area.
- In a Civil Code lease governed by articles 1708 and following of the Civil Code, the parties can define by mutual agreement three main points : the duration, the conditions of renewal and finally the rent.
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Posted on 13/04/2022 by
Andy LECUYER
