As a landlord, it is often necessary to adjust the rent of a property. But when and how should you announce this increase to your tenant? We explain the best practices to follow to comply with the legislation while maintaining a relationship of trust with your tenant. Find out the laws in force, the right times to make an increase and the procedures to follow.
When you are ownerset the amount of the rent is a delicate balance. It must reflect the reality of the market while being attractive to tenants. A rent that is too high could repel potential candidates, while a price that is too low could decrease your profitability. This is why it is essential to consider several factors before increasing a rent. The rent of a rental property must be in line with the rates practiced in the same geographical area for similar accommodation.
The evolution of the local real estate market may also justify a increase of rent. However, law n°89-462 of July 6, 1989 strictly regulates these increases. In particular, a annual reassessment is possible if a clause is included in the lease contract and if the rent review index (IRL) published by INSEE is respected. In addition, housing classified F or G in terms of energy diagnosis can no longer be subject to an increase since August 24, 2022.
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When to announce a rent increase to your tenant?
The ideal time to announce a rent increase depends on several criteria. It is important to respect the legal deadlines and adopt a transparent approach with your tenant. First, as part of an annual review, the landlord must inform his tenant at least one month before the scheduled deadline in the contract. If the owner misses this deadline, he will have to wait until the following year to apply an increase.
In case of improvement works carried out in the accommodation, the lessor can also justify an increase. In this case, the amount of the increase must be agreed with the tenant and included in an amendment to the lease. However, it is not recommended to announce a rent increase without sufficient notice or without valid justification, otherwise the relationship with your tenant may deteriorate.
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Steps to increase the rent
- Inform the tenant in writing
When you decide to increase the rent, it is imperative to inform the tenant by registered letter with acknowledgment of receipt. This letter must detail the following elements: the new rent amount, the effective date and the calculation of the increase. If the revision is based on the rent review index, specify the indices used to justify the amount.
- Respect deadlines and formalities
If the increase is planned when the lease is renewed, the owner must notify the tenant at least six months before the end of the lease. This period allows the tenant to prepare for this increase or to discuss the terms of their contract. Finally, make sure that the increase complies with legal ceilings and local rules, particularly in tense areas where rent control is stricter.
By applying these best practices, you will be able to increase the rent while respecting the legislation and maintaining a peaceful relationship with your tenant.