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Temps de lecture : 21 minutes

Rent control

Faced with the difficulty of access to housing noted in the city of Montpellier and to enable everyone to access housing commensurate with their income, the rent control scheme has been in force since July 1, 2022.

Rent control in Montpellier explained

Rent controls are a way of limiting rent levels in areas of high real estate tension and preventing abusive rents. The rent control order determines a reference rent (excluding charges), a floor rent and a ceiling rent not to be exceeded.

Rent control has been a mandatory rule in Montpellier since July 1, 2022.

Which leases and which homes are affected?

Accommodation concerned:

  • Empty and furnished rentals,
  • Main or mixed-use residences (professional and main residence),
  • Mobility leases.

Rent controls apply to leases signed since July 1, 2022:

  • 1st rentals,
  • changes of tenants,
  • lease renewals,
  • mobility leases.

This is in addition to the annual decree limiting increases in the event of re-rentals.

This does not apply to:

  • Housing managed by a HLM or SEM
  • Housing under ANAH agreement
  • Housing subject to the 1948 law
  • Seasonal rental contracts (furnished tourist accommodation)
  • Furnished accommodation operated or managed with services
.

How does it work?

Each year, the Préfet de l'Hérault sets by decree:

  • A reference rent
  • An increased reference rent (= reference rent + 20%) = ceiling not to be exceeded
  • A reduced reference rent (= reference rent - 30%)

The reference rent is determined according to 4 criteria:

  1. Geographical area
  2. Number of rooms
  3. Episode of construction
  4. Empty or furnished

Rents are quoted per m² of living space and excluding charges.

Note: exceptionally, when the property presents exceptional characteristics in comparison with dwellings of the same category located in the same geographical area, a rent supplement may be requested by the lessor.

Make a simulation to find out how much your rent will be

An online simulator is available to find out the reference rent for your property and check whether your rent complies with the rent framework:

I'm an owner

I check the conformity of my rent by consulting the online simulator.

For non-compliant rent, i.e. rent in excess of the increased rent:

  • If the lease was signed on or after July 1, 2022, my tenant can request compliance
  • If the lease was signed before July 1, 2022, when renewing the lease, my tenant can initiate rent reduction proceedings at least 5 months before the end of the lease.

For a rent lower than the reduced rent, I can initiate, under conditions, at the time of lease renewal, a rent revaluation action at least 6 months before the end of the lease.

Practical case

The ceiling rent for my 45m² dwelling, determined according to its geographical area and characteristics, is 729€ / month (excluding charges):

  • I rent this dwelling 729€ / month or less: my rent is compliant.
  • I rent this dwelling for more than 729€ / month: my rent is not compliant.
  • I rent this dwelling for less than 427.50€ / month, I'm below the floor rent.

To know

  • For a lease signed on or after July 1, 2022, I must indicate on the rental contract the reference rent and the increased reference rent corresponding to the category of dwelling.
  • For a lease signed before July 1, 2022: rent control does not apply.
  • If I apply a rent supplement, I must specify in the lease its amount and the characteristics justifying it.
  • If I have not included all this information in the lease, the tenant may, within one month of the lease taking effect, give me formal notice to include this information in the lease. If I don't respond within one month, or if I refuse to do so, my tenant can take the matter to court within 3 months of the formal notice.

Find out more on the Adil 34 website

What rent should I offer?

At the end of the lease, the contract is usually tacitly renewed under the same conditions.

I check the conformity of my rent at least 6 months before the end of the lease by consulting the online simulator.

  • If my rent is above the ceiling rent, my tenant can initiate an action to reduce the rent
  • If my rent is below the floor rent, I can implement the procedure to re-evaluate my rent upwards; subject to conditions.

Practical case

The ceiling rent for my 45 m² apartment, determined according to its geographical area and characteristics, is 729€ / month (excluding charges):

  • I rent this apartment for 729€ / month or less: my rent is compliant.
  • I rent this apartment for more than 729€ / month: my rent is not compliant.
  • I rent this dwelling for less than 427,50€ / month, I'm below the floor rent.

To know

  • When signing a renewed lease, I must mention in the rental contract the reference rent and the increased reference rent, corresponding to the category of dwelling.
  • When renewing a lease by tacit renewal, consult the website of the Agence Départementale d'Information sur le Logement (Adil 34)
  • If I apply a rent supplement, I must specify in the lease its amount and the characteristics justifying it.
  • If I haven't included all this information in the lease, the tenant can, within 1 month of the lease taking effect, give me formal notice to include this information in the lease. If I do not respond within 1 month, or if I refuse to do so, the tenant can take the matter to court within 3 months of the formal notice.

Find out more on the Adil 34 website

What rent to offer?

I check that my rent is in line by consulting the online simulator.

I must set the rent according to the lowest of the following limits:

  • The increased reference rent,
  • The rent applied to the previous landlord, possibly revised,

If the rent is manifestly undervalued in relation to those in the neighborhood or, under certain conditions, if the dwelling has undergone improvement work or been brought up to decency standards, the rent may be revalued without exceeding the amount of the increased rent.

Practical case

The ceiling rent for my 45 m² home, determined according to its geographical area and characteristics, is 729€ / month (excluding charges):

  • I rent this home 729€ / month or less: my rent is compliant.
  • I rent this property for more than 729€ / month: my rent is not compliant.
  • I rent this property for less than 427,50€ / month, I'm below the floor rent.

To know

  • I must mention the reference rent and the increased reference rent, corresponding to the housing category, in the rental contract.
  • If I apply a rent supplement, I must specify in the lease its amount and the characteristics justifying it.
  • If I have not included all this information in the lease, the tenant may, within one month of the lease taking effect, give me formal notice to include this information in the lease. If I don't respond within one month, or if I refuse to do so, my tenant can take the matter to court within 3 months of the formal notice.

Find out more on the Adil 34 website

What rent should I offer?

  • I check that my rent is in line by consulting the online simulator.
  • The rent (excluding charges) charged to my tenant must not exceed the increased reference rent displayed in the simulator.
  • Below this increased rent, I am free to set my rent.

Practical case

I want to rent my 45m² apartment. In the geographical area where it is located and according to its characteristics, the reference rent per m² is €13.5/m². The reference rent is therefore 607.50€/month (excluding charges) (45m² x 13.5€/m²).

To calculate the ceiling not to be exceeded, we need to add 20%. The rent I propose will therefore have to be less than 729€ / month (excluding charges).

To know

  • I must mention in the rental contract the reference rent and the increased reference rent, corresponding to the housing category.
  • If I apply a rent supplement, I must specify in the lease its amount and the characteristics justifying it.
  • If I have not included all this information in the lease, the tenant may, within one month of the lease taking effect, give me formal notice to include this information in the lease. If I don't respond within one month, or if I refuse to do so, my tenant can take the matter to court within 3 months of the formal notice.

Find out more on the Adil 34 website

What rent to offer?

Shared flats are affected in the same way as rentals.

I check that my rent is in line by consulting the online simulator.

In shared flats with multiple leases (each flatmate signs an independent lease with the landlord), the reference rent will be calculated in the same way as in a standard rental. The total rent received (excluding charges) must not exceed the increased reference rent.

To know

  • I must mention the reference rent and the increased reference rent, corresponding to the housing category, in the rental contract.
  • If I apply a rent supplement, I must specify in the lease its amount and the characteristics justifying it.
  • If I have not included all this information in the lease, the tenant may, within one month of the lease taking effect, give me formal notice to include this information in the lease. If I don't respond within one month, or if I refuse to do so, my tenant can take the matter to court within 3 months of the formal notice.

Find out more on the Adil 34 website

Beware: if you initiate a rent revaluation action, you cannot give the tenant notice to vacate for the same contract term.

If the rent charged before the lease renewal is below the floor rent (reference rent - 30%), here's the revaluation procedure:

  • Check with the simulator that the rent you are charging is below the reference floor
  • At least 6 months before the end of the lease, send a registered letter with acknowledgement of receipt proposing the new rent to your tenant. As a reminder, the new rent is less than or equal to the reduced reference rent (example: you charge a rent of €400/month for 45m². The floor rent for your property is €427.50. You therefore have the option of increasing your rent to €427.50/month (excluding charges). You must not exceed this floor.
  • Your tenant has 2 months to contest your request:
    • If he accepts: you sign a new lease with your tenant indicating the new rent
    • If he refuses: you must contact the Commission Départementale de Conciliation by post or e-mail 4 months before the end of the contract. Thereafter, the CDC will convene you and your tenant to reach an agreement.
  • In the event of agreement: a conciliation notice is drawn up at the meeting
  • In the event of disagreement: a non-conciliation notice is drawn up at the meeting. You can then refer the matter to the judge before the end of the contract. In the absence of a referral to the judge, the contract is automatically renewed under the previous rent conditions, revised if necessary.

Find out more on the Adil 34 website

Rent increases are possible, but only within the limit of the Indice de Référence des Loyers except in special cases.

If the property has been vacant for less than 18 months, I must set the rent according to the lowest of the following limits:

  • Reference rent increased
  • Rent applied to the previous landlord, possibly revised

If the rent is manifestly undervalued in relation to those in the neighborhood or, under certain conditions, if the dwelling has undergone improvement work or been brought up to decency standards, the rent may be revalued without exceeding the amount of the increased rent.

Note that for contracts entered into, renewed or tacitly renewed since August 25, 2022, dwellings with energy labels F and G will no longer be eligible for rent reviews.

Find out more on the Adil 34 website

If the prefect finds that a lease does not comply with the increased reference rent stipulated by the decree, he can send a formal notice letter to the lessor (Loi ELAN : art.140 and decree no. 2019-437 of 13.5.19: art. 1):

  • Reminding him of the breach found;
  • Instructing him to bring the contract into line with the reference rent and to return the overpayment of rent to his tenant within two months;
  • Informing him of the maximum amount of the penalty incurred if he fails to react;
  • Informing him that he has one month to submit his observations.

The lessor has a period of one month from the date of this formal notice to submit his observations

He must also, within two months of the formal notice, send the prefect a copy of the contract brought into compliance as well as the elements justifying the reimbursement of overpayments to the lessee.

If the lessor fails to respond to this formal notice, the prefect may impose a fine on the lessor (up to a maximum of €5,000 for an individual and €15,000 for a corporate body).

The imposition of the fine does not preclude the lessee from taking action to reduce the rent.

Find out more on the Adil 34 website

I'm a tenant

My lease

  • I signed my lease on or after July 1, 2022: the lease contract must mention the reference rent and the increased reference rent, corresponding to the housing category
  • I signed my lease before July 1, 2022: rent control does not apply.

If a rent supplement is applied: the amount of the rent supplement and the housing characteristics justifying it must be mentioned in the lease contract.

If the lease does not include these various mandatory mentions, I can initiate compliance proceedings.

My rent

Please note: for contracts entered into, renewed or tacitly renewed on or after August 25, 2022, housing with an energy label of F and G will no longer be eligible for a rent review.

Find out more on the Adil 34 website

In principle, at the end of the lease, the contract is renewed by tacit agreement under the same conditions. There's no need to sign a new lease.

If my rent complies with the rent guidelines, I have no steps to take.

On the other hand:

  • If my rent is above the ceiling rent, I can initiate a rent reduction procedure.
  • If my rent doesn't comply: make an online simulation.
  • If my rent is below the floor rent, my landlord can initiate an upward revaluation procedure.

  • To check that the rent I'm being offered complies with the framework, I run an online simulation.
  • My lease, signed from July 1, 2022, must mention the reference rent and the increased reference rent, corresponding to the housing category.
  • If a rent supplement is applied, it must also be mentioned in the lease with all its justifying features.
  • If I realize that my lease is not compliant after signing it, I can initiate a compliance procedure (see below)

Rent controls also apply. In the case of a shared apartment with multiple leases, in order to check whether the rent paid is compliant, it is necessary to take into account the total rent received by the landlord. It is this overall amount that must comply with the rent control.

Make an online simulation

To be compliant, your lease must mention:

  • The reference rent
  • The increased reference rent corresponding to the category of your accommodation
  • The rent supplement, if any, and its supporting details

If one of these elements is missing, here's the procedure:

  • I send a registered letter to my landlord within one month of the lease taking effect
  • My landlord has one month to reply and bring my lease into compliance
  • If he refuses or doesn't reply, I have up to 3 months from my request for compliance to refer the matter to the Commission Départementale de Conciliation
  • A reduction may be applied. The penalty will be assessed by the judge.

In the case of mobility leases, the reduction will be requested directly before the district court, as the Commission Départementale de Conciliation has no jurisdiction over disputes relating to this type of lease.

For contracts entered into, renewed or tacitly renewed since August 25, 2022, housing with energy labels F and G will no longer be eligible for rent reviews.

Find out more on the Adil 34 website

I signed my lease before July 1, 2022 and my rent excluding charges and any rent supplement is higher than the increased reference rent, I should wait for the renewal of my lease to start a reduction procedure :

  • At least 5 months before the end of the lease, I send a registered letter to my landlord proposing a new rent that respects the framework
  • My landlord has one month to accept or contest my request
    • If he accepts: the new rent is applied
    • If he refuses: I must contact the Commission Départementale de Conciliation (CDC) 4 months before the end of the lease. The CDC then convenes a meeting between me and my landlord to reach an agreement.
  • If agreement is reached: a conciliation notice is drawn up at the meeting
  • If there is disagreement: a non-conciliation notice is drawn up at the meeting. I can then refer the matter to the judge. Failing referral to the judge, the contract is renewed ipso jure at the previous rent conditions, possibly revised.

As regards the mobility lease, the reduction will be requested directly before the tribunal d'instance, as the Commission Départementale de Conciliation is not competent for disputes relating to this type of lease.

For contracts entered into, renewed or tacitly renewed since August 25, 2022, housing with energy labels F and G will no longer be eligible for rent reviews.

Find out more on the Adil 34 website

I have 3 months from the signing of the lease to refer the matter to the Commission Départementale de Conciliation (CDC) by post or e-mail (except for a mobility lease, for which it will be appropriate to refer the matter directly to the judicial tribunal).

My landlord must demonstrate that the rent supplement is justified by characteristics of location or comfort by comparison with housing in the same category located in the same geographical area.

The CDC convenes me and my landlord to reach an agreement:

  • In the event of agreement: a conciliation notice is drawn up in session
  • In the event of disagreement: a non-conciliation notice is drawn up in session. I have up to 3 months from receipt of the CDC notice to refer the matter to the judge.

In both cases, the rent indicated on the conciliation document or the court decision applies from the date the lease takes effect.

The Commission Départementale de Conciliation (CDC) aims to settle rental disputes amicably. It offers landlords and tenants the opportunity to meet and work together to find a solution to the conflict between them, without going to court.

This procedure is free of charge.

Preliminary referral to the CDC is compulsory before any legal action can be taken in the case of disputes relating to rent controls, changes in rent levels on re-rental or lease renewal, and a manifestly undervalued rent.

How do I refer a dispute to the CDC?

Referral to the CDC is made by sending the completed CDC referral form together with supporting documents:

Direction Départementale de l'Emploi, du Travail et des Solidarités de l'Hérault
Commission Départementale de Conciliation
615 boulevard d'Antigone - CS 19002 - 34064 MONTPELLIER

Frequently asked questions

As of today, rent control applies until November 23, 2026 following the adoption of the 3DS law of February 21, 2022 on Differentiation, Decentralization, Deconcentration and Simplification.

The determination of rents practiced in Montpellier is carried out by l'Observatoire Local des Loyers (OLL) de Montpellier Méditerranée Métropole supported by ADIL 34.

The rent study carried out by the ADIL 34 has led to the creation of a zoning that divides the city of Montpellier into 5 zones. For each zone, reference rents (basic, increased and reduced) have been established and depend on the number of rooms (T1, T2, T3, T4 and more), the year of construction (before 1946, between 1946 and 1970, between 1971 and 1990, between 1991 and 2005, after 2005) and whether the property is rented empty or furnished.

Each year, the OLL produces median rents and forwards them to the Prefecture for determination of reference rents.

Example: for a 60m² T3 rented empty, whose reference rent according to its location and year of construction would be 11.5€ / m²; i.e. a monthly rent of 690€ excluding charges (60m² x 11.5€/m²). The maximum rent would be 828€ per month (60m² x 11.5€/m² + 20%). The floor rent would be 486€ per month (60 m² x 11.5€/m² - 30%).

Reference rents, increased reference rents and reduced reference rents are reassessed each year on the same date with the publication of a new prefectoral decree.

Article 140 of the ELAN law, relating to the experimental rent control scheme, specifies that the reference rents set by prefectoral decree are determined per m² of habitable surface area.

The habitable surface area is defined in article R.156-1 of the Code de la Construction et de l'Habitation.

A rent supplement can be added to the reference rent charged provided:

  • the base rent is equal to the ceiling reference rent (if your rent is below the ceiling rent you cannot request a rent supplement; if your rent is above the ceiling rent you must bring yourself into compliance)
  • the dwelling presents characteristics of location and comfort justifying it by comparison with dwellings of the same category located in the same geographical sector (ELAN law: art. 140). These characteristics must:
    • not have been taken into account in determining reference rents ; they cannot therefore be the type of rental (empty or furnished), the number of rooms, the period of construction, or its geographical location
    • be decisive in setting the rent, particularly in comparison with dwellings in the same category located in the same geographical sector
    • not give rise to recovery by the lessor in respect of charges or energy-saving work
  • when the dwelling is furnished, the rent supplement takes account of exceptional equipment and services (not included in the list defining the minimum equipment for furnished accommodation) associated with the rented accommodation

The amount of the rent supplement and the characteristics justifying it must be mentioned in the rental contract. It should be noted that, in the absence of a definition of the rent supplement in the lease, or if it is deemed too high, the tenant is able to initiate a compliance procedure.

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