Supervision of rents in Paris, what surface is to consider?
Summary:
1 . Living space: the main criterion
2 . Special cases: annexes and common areas
3 . Consequences of Miscalculation
For several years, Paris has been implementing measures to regulate the rental market and protect tenants from excessive rent increases. One of these flagship measures is rent control, which aims to cap rents in certain geographical areas, including the French capital.
However, an important question arises for landlords and tenants: how much space should be taken into account when determining the maximum allowable rent?
Living space: the main criterion
When determining the maximum permissible rent under rent control, the main criterion taken into account is the living area. The living area of a dwelling is defined by the Boutin law and includes the total surface area of living rooms, with the exception of unfinished attics, cellars, basements, sheds, garages, terraces, balconies, drying sheds outside the dwelling, verandas, loggias and other outbuildings, as well as parts of premises with a height of less than 1.80 metres.
Special cases: annexes and common areas
In Paris, rent control is a set of regulations that determine how much a property's rent should be. Though the owner/landlord has the power to set whatever amount they wish, it's imperative that they do so according to the regulations. Updated annually by a decree, this rent control system includes references to fixed and increased rental fees over a period of time. There's also the median rent, which is determined by gathering data on rent levels within specific locations and categories of rental properties.
The reduced reference rent corresponds to 70% of the reference rent while the increased reference rent corresponds to 120% of the reference rent.
However, it is possible to establish a rent supplement, in addition to the basic rent, that is agreed upon by both parties of the lease. This supplement can only be applied if the property includes certain characteristics or if the location has other similar properties that also meet the specific criteria.
Rent control in Paris is largely based on the living area of the home. Landlords and tenants must be vigilant and accurate in calculating this area to avoid any disputes or sanctions. In case of doubt, it is recommended that you check with the relevant authorities or consult a real estate professional for advice tailored to their specific situation.
- The living area of the dwelling is the main criterion for determining the maximum allowable rent, defined by the Boutin law.
- Annexes such as terraces or balconies of more than 8 square metres can be taken into account, but must meet the living area criteria.
- It is crucial to accurately check the criteria for calculating the living area to avoid any disputes or sanctions. Refer to official texts and consult real estate professionals if necessary.
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Posted on 21/10/2021 by
Andy LECUYER
