What do you need to know before renting a furnished apartment in France?

The furnished apartments in France are distinguishable from the unfurnished ones. The legal system treats them differently when it comes to regulation.

These rules might include agency fees, rent payment, rental fees etc. Other rules might be different in terms of the details of the rented accommodation, especially in terms of the duration of the lease and the notice of departure.

The furnished apartments are defined by law as an accommodation with all the necessary home fittings.

The house otherwise might be legally classified differently and can be subject to the constraints of the law made on July 6^th, 1989 which is made about the termination of the rental contract.

The law specifies that the lodgings should contain some mandatory furniture to be classified as a furnished rental. So what is considered mandatory furniture?

Mandatory furniture

From the so-called “Alur Law” made in March 2014,  the article 25-4 of this law defines a furnished lodging as follows:

"A furnished dwelling is a decent dwelling equipped with a sufficient number and quality furniture to enable the tenant to sleep, eat and live in the properly in the light of the demands of everyday life. "

The decree No. 2015-981 of July 31 lists the furniture elements that this lodging must include.

Since September 1, 2015 which corresponds to the date of entry into force of the decree, the furniture of a furnished apartment must at least include the following: linens comprising of a duvet or blanket, curtains, cooking plates, oven or microwave, refrigerator with a freezer, the necessary tableware, kitchen utensils, a table and seats, storage shelves, lighting fixtures and housekeeping equipment adapted to the characteristics of the housing.

However, the lodging is treated by the law as commercial property.

The room as commercial property

The owner who is renting the property is legally liable to purchase the necessary furniture and list them on the balance sheet of the commercial property.

The income from the furnished property is to be taxed on the category of industrial and commercial profits. Therefore the owner should keep proper accounts of such transactions. There are several categorizations among different types of furnished rentals.

The contract is characterized by a contractual term called the lease term.

Lease Term

The lease is mostly a year. It can be renewed on purpose under the same conditions after this period. The landlord may, however, propose to the tenant modifications of these conditions at least three months before the end of the lease. In case a property is rented by a student different rules apply.

Student housing

When the furnished apartment is occupied by a student, it is considered his principal residence, even if the student continues to be residing with his parents. In addition, the minimum term of the lease has been reduced to nine months and the term is not subject to automatic renewal at the end of the lease. The owner and the lessee can then enter into a new contract voluntarily if they wish to continue the lease. There can be rent price adjustments at the end of the term.

Rent Price Increase

The annual rent increase during the lease cannot exceed the change in the rent reference index called IRL. The contract termination is also subject to certain regulations.

Termination of the lease

The tenant can terminate the lease at any time, with one month's notice. He must give notice by notifying the owner by a letter sent by registered mail with acknowledgment of receipt or as specified by “Bailiff's act”.

The landlord may terminate the lease at the end of the term, subject to three months' notice. It must justify its decision by invoking one of the reasons set by the law made on July 6, 1989, which justifies contract termination for the following reasons: a sale or resumption of housing, or a legitimate or serious reason such as non-performance by the tenant such as its obligations like non-payment of rent etc. The tenant may leave the premises at any time during this notice and is exempt from rent between his departure and the end of the notice period. The lodging contract should have a security deposit.

Security Deposit

The deposit amount is to be two months’ rent, excluding charges. If the rent is paid in advance per quarter the landlord cannot make any deposit requests to the tenant. The deposit must be returned within a time limit and has certain requirements.

Deposit return

The deposit must be returned within a maximum period of one month when the inventory of places of exit matches with the inventory of places of entry. In case of differences between the two conditions, this period is fixed at 2 months. The period runs from the day the keys are handed over by the tenant. Sometimes there can be delays in returning the deposit after the checkout.

Deposit payment Delay

If the lessor delays in delivering the deposit, the tenant must send him a letter of formal notice sent by registered mail with acknowledgment of receipt. The retention of the deposit may give rise to the payment of default interest by the lessor. The “Alur Law” has specified a template for contracts.

The Contract

The "Alur Law" has introduced a model furnished rental contract that you can be downloaded online. This model contains the essential clauses of the contract imposed by law or regulation. The “Alur Law” has emerged as a necessity to regulate the relationship between tenant and lessor.

Alur Law

The” Alur Act” extended or adopted certain provisions of the law of 6 July 1989 to furnished rentals as a principal residence, with the exception of official residences and residential homes. These are some of the provisions relating to the inventory, management of rents in dense zones, the technical diagnosis, prohibited clauses, the amount of agency commission, the obligations of the lessor and the lessee and protection of older tenants. In case the habitual area is not the principal residence the parties can arrange their own terms when it comes to reaching a contractual agreement.

Freehand at contracting

When the lodging is not occupied as a principal residence, the two parties, tenant, and owner are in principle free to fix as they wish the term of the lease, the conditions of the renewal of the rent, etc. Specific rules also apply to seasonal rentals.

Seasonal furnished rental

The furnished seasonal renting relates to the furnished lodgings given for rent for a maximum and non-renewable duration of 90 days. It is governed by articles 1713 and following of the Civil Code and implies in particular certain obligations: communication of the precise description of the places, modalities of reservation, the deposit of guarantee, prohibition of unfair terms, etc.

These are some of the legal requirement that tenants must know when entering into a contractual obligation in France. These provisions are made to help the customers make better decisions when it comes to renting and leasing.  In case you need assistance in finding rentals in France Liveonriviera has the best options for you.