Raising the rent: in which cases you can do it?

You want to increase the rent for the accommodation you are renting. However, you don’t know how to go about doing it legally. We will therefore detail the procedure to follow and we will tell you in what circumstances you can do so.

Rent increase during the lease

As a landlord, you cannot increase the rent during the lease, unless a review clause has been added to the rental contract. In this case, you can reassess the rent once a year, on the date provided for this or, if no date has been provided, on the anniversary date of the signing of the rental agreement. However, the amount of this rent increase is framed by the Rent Reference Index, also called IRL. This therefore serves as the basis for defining the increase in rent, which cannot exceed the variation provided for by the IRL. However, an exceptional rent increase may occur in the event of work aimed at improving the quality of the accommodation. However, this must be provided for in the rental contract and the amount of the increase must be agreed with the tenant.

Increase the rent at the end of the lease

When the lease is renewed, you can increase the rent. However, it must still stay within the limits set by the IRL. However, if you believe that your accommodation is undervalued or that you have carried out major improvement work, you can ask the tenant to have the rent reassessed. However, for this, the amount of work must at least reach half of the total value of the rents over the past year. This increase will also be capped and may not exceed 15% of the amount of the work or half of the difference in rent between this accommodation and other equivalent accommodation located nearby. In the absence of improvement works, the increase will be based solely on the increase of other similar dwellings in the vicinity.

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What is a review proposal?

If you intend to increase your rent at the end of the rental contract, you must notify your tenant of this by sending him a proposed revision by registered mail with acknowledgment of receipt. This letter must indicate the amount of the new rent and three rent references for equivalent accommodation located nearby. However, for certain cities such as Paris, Marseille or Lyon, six references will be necessary. The tenant then has two months to accept this proposal. If this is not the case, you will have to settle the situation amicably by going to the conciliation commission.

What solutions for the tenant in the event of a sharp increase?

You have applied a large increase to your rent, for example because of the surge in real estate in the city where your accommodation is located. In this case, the tenant may suffer damage and find themselves in difficulty. The increase can then be passed on regularly over the entire duration of the lease. For example, if a six-month rental agreement has been signed, the rent will gradually increase each year by one-sixth of the amount of the rent increase, until it reaches the discounted value in the sixth and final year of the lease. lease.

Read also: What to do when a tenant does not pay his rent?

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