Renting

What you need to know

• The tenancy agreement
• Obligations of the parties
• The inventory of fixtures
• Tenants' repairs
• The rent
• Deposit
• Security
• Tenants' service charges
• Asking for the rent receipt
• Notice

The tenancy agreement

The tenancy agreement is signed for a minimum of 3 years when the owner is a private individual and 6 years when the landlord is a legal entity (firm, insurance company, pension fund, etc.)

What the agreement has to contain

The tenancy agreement must be written and signed. It must include the following information:

• The names and addresses of the owners, even when a letting agent is used.
• The beginning and end of the tenancy period ;
• The composition and purpose of the rental premises.
• A description of the premises and facilities for private use and, where applicable, the list of areas, installations and equipment whose use is shared with other owners or tenants.
• The rent, how and when it is to be paid, and any revision rules.
• The deposit, if applicable.
• The results of the lead-based paint hazard survey, if applicable.

What the agreement may not contain

It is against the law:

• To oblige the tenant to make a standing payment order for the rent;
• To terminate the tenancy agreement without further notice in cases other than non-payment of the rent or failure to take out an insurance policy;
• To reduce any of the appointments stipulated in the tenancy agreement without adequate compensation ;
• To fine the tenant in the case of non-respect of the tenancy agreement or the building rules;
• To prohibit the tenant for carrying out any political, trade union, associative or professional activity;
• To oblige the tenant to take out insurance with a company chosen by the landlord;
• To oblige the tenant to allow the premises to be viewed on public holidays and for more than two hours per working day after he has given notice.

Documents to be appended to the tenancy agreement

A certain number of documents must be appended to the tenancy agreement, namely:

• the inventory of fixtures;
• an extract from the building regulations if applicable.

Obligations of the parties

The signing of a tenancy agreement imposes obligations on both the landlord and tenant.

The landlord's obligations

When he hands over the keys, the landlord must provide the tenant with premises fit for habitation and in good repair. The fittings and fixtures set out in the tenancy agreement must function correctly.

The notion of premises fit for habitation is defined in the law of 13th December 2000 (known as the SRU law) which relates to tenancy agreements governed by the law of 1989. The premises must not present "any obvious risks which could be detrimental to the health and safety of the tenant and must contain fittings and fixtures that make it fit to live in". These new provisions apply to both furnished and unfurnished lettings, and to all current tenancy agreements.

The landlord must also guarantee the tenant peaceful enjoyment of the premises throughout the tenancy period. Consequently, he must carry out all repairs other than tenants' repairs.

The tenant's obligations

The tenant must:

• pay the rent and service charges;
• take out a comprehensive home insurance policy;
• carry out all necessary tenants' repairs;
• allow the landlord to have works carried out in both the common and private areas.

The inventory of fixtures

Even if it is not compulsory, it is strongly recommended to both parties that an inventory of fixtures be appended to the tenancy agreement.
If no inventory is carried out, the party who refused to do so may not rely on the assumption that the premises were let in a good state of repair.
The inventory must be carried out in the presence of both parties before the keys are handed over to the tenant. An inventory is also required when the keys are given back. At the end of the tenancy, the two inventories are compared in order to determine any repairs to be carried out by the landlord or tenant. If the tenant enters the premises in the summer months, he may ask for the inventory of fixtures to be completed after the heating season begins, so that the state of repair of the heating installations can be assessed.
The inventory can be drawn up:

• either by the landlord in the presence of the tenant;
• or by a bailiff at the initiative of either one of the parties. In this case, the bailiff must inform the parties at least seven days in advance by registered letter with acknowledgement of receipt. The costs will be shared equally between the landlord and the tenant.

Tenants' repairs

Tenants' repairs cover everyday maintenance and upkeep as well as minor repairs to be carried out by the tenant.
The tenant must carry out the said repairs, except in the case of disrepair, force majeure (natural catastrophe, for example) and hidden defects.
Decree n° 87-12 of 26th August 1987 contains an indicative list of repairs deemed to be tenants' repairs that concern both the outside of the premises (garden in the case of a house) and inside equipment (electrical plugs, shower hose, etc.)
Unless stipulated otherwise in the agreement, the landlord cannot insist that the work be carried out during the tenancy. However, the tenant has an obligation to act responsibly and must carry out repairs as soon as possible if there is any risk of the premises being degraded as a result. When the premises are handed over at the end of the tenancy, all tenants' repairs must have been carried out. Otherwise, the tenant must reimburse the owner for the cost of carrying out the repairs.

The rent

The rent, fixed freely between the parties at the time of signature of the tenancy, is the amount of money paid by the tenant to occupy the owner's property.
Payment must be monthly if so requested by the tenant and the owner cannot require a standing order.
When the tenancy includes a cost-of-living indexation clause, the rent exclusive of service charges will be revised annually on the date agreed upon by the parties or, failing agreement, on the anniversary date of expiration of the tenancy.
The compulsory rent reference index since 1st January 2006 is the I.R.L. which is aimed at attenuating the impact of rising construction costs on rent increases.
When the tenancy agreement does not include rent revision, the owner cannot increase the rent before expiration of the normal tenancy period. However, at the time of renewal of the tenancy agreement, the rent can be increased if it appears to be undervalued.

Deposit

A deposit is an amount of money usually paid by the tenant to the landlord to guarantee performance of the tenants' obligations. From 10 February 2008, the deposit cannot exceed one month's rent excluding service charges. Although it is not compulsory, the owner is entitled to ask for it.
The deposit must be refunded to the tenant within a maximum period of two months from the date of handing back the keys, after deducting any sums owed to the landlord.

Security

More and more owners are now asking their tenants for security. Security is pledged by a guarantor who undertakes to pay the owner any rent arrears.
The security term is said to be indeterminate if not specified otherwise. The guarantor can terminate the agreement unilaterally, but his withdrawal will only take effect at the end of the tenancy agreement. Termination must be notified to the owner by registered letter with acknowledgement of receipt.
Security can also be pledged for a fixed period of time by specifying in the security agreement the number of renewals to which the security is to apply.
To be legally valid, the security agreement must include the following:

• the rent, the revision conditions and article 22-1 al.1er of the law of 6th July 1989, in the guarantor's handwriting;
• the guarantor's handwritten statement clearly expressing his knowledge of the nature and extent of his contractual obligations.

Tenants' service charges

The tenants charges, also called recoverable charges (charges récupérables/), are the expenses incurred by the landlord that contribute to quiet enjoyment of the premises by the tenant.
They include:

• expenses incurred for services relating to the rented premises and use of the apartment building (caretaker's salary, water and power consumption, lift maintenance contract, etc.);
• tenants' taxes (household refuse tax, etc.) ;
• charges corresponding to everyday maintenance expenses and minor repairs for the common areas of the building (maintenance visits, repairs, etc.) unless the expenses are due to design defect or poor construction of the building. In this case, it is the owner who has to correct the flaw or defect.

The decree of 26th August 1987 provides an exhaustive list of tenants' service charges.
No other charge can be claimed from the tenant. The owner is entitled to claim provisional charges, calculated according to the charges paid by the owner the previous year.
The owner must readjust the charge accounts at the end of each annual tenancy period. Two situations can arise:

• the charges actually paid by the owner are less than the provisional charges paid by the tenant. In this case, the owner reimburses the excess amount or deducts it from the next month's rent;
• the charges actually paid by the owner are greater than the provisional charges paid by the tenant. In this case, the landlord is entitled to claim the difference from the tenant, provided he can produce adequate proof in the form of a statement of expenses giving details of the charges to be paid or, in the case of an apartment building, the percentage of the total charges paid by the landlord as set out in the building regulations. These documents will be kept at the disposal of the tenant for one month.

The owner can readjust and recover the charges from the tenant for a period of 5 years, substantiated by documentary proof.

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Asking for the rent receipt

When the tenant asks for a rent receipt, the landlord must provide it free of charge. The receipt must give details of the amount paid by the tenant, indicating the rent and the service charges separately.
In the case of partial payment, the landlord cannot give a rent receipt but must still give a receipt for the amount paid.

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Notice

Notice is the act by which the tenant or landlord ends the tenancy agreement. It must be notified by registered letter with acknowledgement of receipt or served by a bailiff.

Notice given by the tenant

The tenant can give notice at any time, three months in advance, reduced to one month in the case of a first time job, a transfer, a loss of employment or a new job after a loss of employment, if the tenant is on income support or, in the case of tenants over the age of 60 years, if their state of health requires a change of domicile.

Notice given by the landlord

A landlord who wants to regain possession of a rented property for one of the reasons below must give the tenant at least 6 months' notice to leave at the end of the tenancy period, i.e.

• The owner can regain possession of the property to provide a residence for himself or his spouse, his legally declared partner (PACS), his common-law spouse if they have been living together for more than one year, his ascendants and descendants or those of his partner, PACS partner or common-law spouse
• The landlord can also give notice in order to sell the property, in which case the tenant has two months to buy the property at the price indicated in the notice.

The landlord can also give notice for any other legitimate, serious reason, such as refusal to pay the rent regularly.

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