In the Purchasing Power Law of August 16, 2022, the government capped the increase in rents at 3.5% until the second half of 2023. Concretely, which housing units are affected? Does this increase include my charges? Overview of what your landlord can or cannot do.
Rising rents: what does the law say?
The law n2022-1158 of August 16, 2022 laying down emergency measures for the protection of purchasing power has provided, in addition to the increase in housing aid, a rent shield for tenants. This means that since July 1 and until June 30, 2023, a private landlord cannot increase the rent by more than 3.5%.
Usually, this revision cannot exceed the change in the rent reference index (IRL) published by INSEE each quarter and which corresponds to the average, over the last 12 months, of the change in consumer prices excluding tobacco and excluding rents. For instance, a rent of 700 euros cannot be increased by more than 24.5 euros, i.e. 724.50 euros per month. Similarly, a rent of 1000 euros cannot exceed 1035 euros.
As a reminder, to increase the rent of his tenant, the lessor must clearly manifest himself. The revision of the rent must be provided for in the lease, and is done once a year, either the anniversary date of the signing of the contract, or a date agreed between the two parties. On the other hand, there is no possible retroactivity, explains David Rodrigues, legal manager in lease law for the CLCV (Consumption Housing Living Environment).
For example, imagine a lease signed in March 2021 with a rent review clause each year in March. If the lessor comes forward in July 2022 for a rent increase, the revision will not be effective until July 1, 2022 without the possibility of requesting increases between March and July.
Can my landlord increase the rent by more than 3.5% if he hasn’t done so in previous years?
No. If the lessor has not revised the rent the previous year, he cannot pass on a double increase to the following year. However, in some cases, the rent may exceptionally be increased during the lease if the owner has carried out improvement work at his own expense. This is the case, for example, in the context of energy renovation works. In this case, the owner and the tenant must then agree together on the increase in rent, either by a clause or by an addendum to the rental contract.
Are all accommodations affected?
All accommodation in the private sector is affected by this rent shield, whether furnished or unfurnished. On the other hand, the revision and the rent increase cannot be applied in housing classified F or G in the energy performance diagnosis (DPE). This ban is part of a global framework of sanctions against the most energy-intensive homes, also known as thermal sieves.
Be careful though, because this ban on increasing the rents of housing F and G only concerns contracts signed from August 24, 2022. (date of entry into force of the law, editor’s note). This also applies to housing classified F and G whose lease is renewed from this date. If, for example, you have signed your lease, which often lasts three years, in 2021, your rent may be revised until 2024, explains David Rodrigues again.
Are the charges included in the 3.5% increase?
The revision of the rent is always made on the basis of the rent excluding charges. The rental charges, paid by the owner and which can be recovered from the tenant, relate to the expenses of the services linked to the accommodation and the use of the building (such as the maintenance of the elevator for example), the costs of day-to-day maintenance and minor repairs in the common areas of the building, as well as cold water, hot water and heating if this is collective.
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However, energy costs could well jump in the coming months by around 15% according to Prime Minister Elisabeth Borne. To increase the tenant’s charges, the owner must provide supporting documents to explain this increase. the Ministry of the Economy website recalls that from the dispatch of the statement of charges, all supporting documents (invoices, maintenance contract, etc.) must be held for six months available to the tenant.
Each month, the tenant pays a provision on charges at the same time as his rent. The owner may request additional charges if the provision is less than the exact amount of the rental charges. Otherwise, the owner must return the overpayment to his tenant.
What should I do in case of abuse by my landlord?
If, despite everything, your landlord tries to increase the rent beyond this 3.5% limit, the best thing is to try to contact his landlord to discuss and explain to him that he does not have the right to increase the rent as much, advises David Rodrigues.
This is what Vivien, a tenant from Rennes, has chosen to do. from IRL 2020 to that of 2022, rising from 750 euros monthly to 782 euros, an increase of 4.27%. By proving to him the irregularity of this increase, Vivien won his case.
If nothing helps, you have to turn to the departmental conciliation commission, explains the CLCV again. Be that as it may, under the rent shield, a landlord who has received too high amounts will just have to repay the differential.