Entering into a rental lease agreement as a tenant/landlord
Pursuant to legislation, the maximum amount that a landlord may charge in rent may not exceed 5 % of the amount the landlord has invested in the property. The concept of invested capital includes:
the price of the land on which the dwelling is built;
the cost of constructing the building;
the amount invested in any renovation and transformation works.
Social housing provided for rent by the Housing Fund administered by the National low-cost housing administration (Société nationale des habitations à bon marché – SNHBM) and communal authorities, and luxury housing (as defined by law), are exempt from this provision.
The rent is set when the lease is signed. It may only be adjusted once every 2 years.
If the lease includes a value clause—i.e., a clause whereby the rent varies based on changes in the cost-of-living index, for instance—that clause becomes null and void from the first term following the date on which a claim is sent to the landlord by registered letter.
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