For the real estate leases contracted between July 1, 2020 and June 30, 2021, the maximum amounts of the rents are renewed.
According to the PAP website, the new rent ceilings are up by around 1.50%. The site mentions that this rise is variable according to the kind of property and the neighborhoods concerned. There rise from 1 to 2% translates into 0.60 euros per m² since July 1, 2020.
This system was put in place to require that the fixed rent by the owner of property don't exceeds not that of the increased reference. In a concrete example, the owner can't augmenter his rent Beyond IRL (the rent reference index) between two successive tenants. The increase however remains possible if the initial rent is undervalued or in case of realization of works of renovation or improvement of property.
In these cases, the rent maybe fixed beyond the rental reference index following the limit of increased rent. All owners who do not respect the reference of the rents are exposed to sanctions. Indeed, he can be sanctioned by paying the overpaid rent to his tenant or by decreasing the rent. If an owner deliberately does not comply, he or she may be penalized with a fine of 15,000 euros if it is a legal entity or 5,000 euros for an individual.
A recent study by Meilleurs Agents states that 53% of advertisement of rental do not respect rent control in the city of Paris. This observation is increasingly significant for small stores which are mainly located in the heart of the most exclusive districts of the capital such as Paris 6. rd, 7th and Paris Center. Approximately 80% of advertisements apartment rental of less than 20 m² do not respect supervision of the rents compared to 45% for those of 60 to 80 m².
The rent control system all the same braked the rise of the prices of rental in Paris, despite the fact that some landlords do not respect it, according to the scientific director of Meilleurs Agents: Thomas Lefebvre.
For the record, the rent control system was implemented in July 2019. Even though rents have increased by 7% since 2017, it managed to minimize the rise of the price of rental. After the implementation of capping, precisely the first 6 months, the course of rents experienced a slight drop according to Best Agents.
The study also showed a bad calibration of framing device of the rents which rests on a rent of reference by neighborhood and do not consider heterogeneity of market. The Clignancourt district in the 18th arrondissement, for example, displays the same reference rent as the districts of Boulevard Ney with a view of the ring road.
