Renting Out Residential Property in France: The Legal Framework for Landlords

Scope of the 1989 Framework

The Loi Mermaz (Loi 89-462 du 6 juillet 1989) applies to lettings of premises used as the tenant's principal residence and to mixed-use premises (professional and residential) where the residential use is principal. It also covers garages, parking spaces, gardens, and other premises let accessorily to a main residential premises by the same landlord to the same tenant. Its provisions are ordre public de protection — public order rules designed to protect the tenant, who may waive them only after having had full opportunity to enforce them, i.e. not before signing the lease.

The following are entirely excluded from the law's scope: lettings of secondary residences; premises let independently of a main residential unit; mixed residential and commercial premises; and premises let to legal entities. Seasonal lettings, service accommodation, and some social housing are only partially subject to the law.

In 2022, a permis de louer regime was formalised: local authorities (EPCI or municipal councils) in areas with a high proportion of degraded housing may require landlords to obtain prior authorisation before letting, or to file a declaration after signing (CCH Art. L 635-1 and L 634-1). Failure to comply exposes the landlord to a fine of up to €5,000 (natural persons) or €15,000 (legal entities).

The Lease: Content and Annexes

Mandatory written lease and standardised form

Every residential lease must be in writing and comply with a standardised lease form. The lease must state, among other things: the identity of landlord and tenant; the last rent paid by the previous tenant; the habitable surface area; access provisions for television and communications technology; and an indication of theoretical energy expenditure from the DPE. The standardised form applies to new leases and renewals — not to tacit renewals (Loi 89-462, Art. 3). Where the habitable surface area is more than 1/20th less than the surface stated in the lease, the tenant may seek a proportional rent reduction within one month of the lease taking effect.

Technical diagnostics (dossier de diagnostic technique)

The landlord must annex a technical diagnostic file to every new lease or renewal where the ten-year validity period has expired. The file must include:

• The DPE (diagnostic de performance énergétique): compulsory, binding on the landlord for its energy rating from 1 July 2021 (CCH Art. L 126-33). Recommendations remain purely informative. The DPE must be made available to any prospective tenant before visiting.
• The état des risques: natural, mining, and technological risks; seismic zones; radon potential; coastal erosion zones. Must be less than six months old and given to the tenant at the first visit (C. envir. Art. R 125-25). Tenant may seek rent reduction or lease termination if this is not provided.
• A lead risk assessment for buildings constructed before 1 January 1949 (valid six years; indefinitely valid if it shows no lead). Absent, the landlord incurs criminal liability.
• An asbestos statement for the presence or absence of asbestos-containing materials.
• Electrical and gas installation assessments (valid six years).
• Airport noise zone documentation where applicable.

Inventory and condition report

An état des lieux must be drawn up jointly at the start and end of the tenancy, or by a bailiff at equal cost if agreement cannot be reached. The report records the condition of all rooms, floor and wall coverings, and equipment, along with utility meter readings. The tenant has ten days from entry to request corrections to the entry report, and one heating-season month to add notes on heating elements. Absent a valid entry report, the landlord cannot invoke the presumption that the tenant received the premises in good repair.

The Logement Décent: Minimum Habitability Standards

The landlord is obliged to let a logement décent — a dwelling free of manifest risks to physical safety or health, free of infestation, complying with a minimum energy performance standard, and equipped with all elements necessary for residential use (Loi 89-462, Art. 6; Décret 2002-120 du 30-1-2002). The key standards, which the tenant may invoke at any time during the tenancy, include:

• Structure: sound roof, walls, and openings; protection against water ingress; weather-tight windows and external doors; sound guardrails on balconies and stairs.
• Area and volume: at least one main room of at least 9 m² and 2.20 m ceiling height (or 20 m³ volume); habitable surface excludes walls, stairs, openings, and areas under 1.80 m height.
• Comfort and equipment: adequate heating; drinking water; drainage; a kitchen or cooking area with hot and cold water; an internal bathroom with WC separate from cooking areas; an electrical network for lighting and domestic appliances.
• Energy performance (progressive schedule): from 1 January 2023, final energy consumption below 450 kWh/m²/year; from 1 January 2025, at least DPE class F; from 1 January 2028, at least class E; from 1 January 2034, at least class D (CCH Art. L 173-1-1; Loi Climat 2021-1104). Dwellings failing these thresholds at the specified dates are classified as non-decent.

Tenant Selection and Anti-Discrimination

The landlord is free to choose their tenant, subject to an absolute prohibition on refusal based on any of the following grounds: origin; name; place of residence; physical appearance; sex; family situation; pregnancy; health; disability; genetic characteristics; sexual orientation; gender identity; age; political opinions; trade union activities; ability to express themselves in a language other than French; or membership of or non-membership of a particular ethnic group, nation, race, or religion (Loi 89-462, Art. 1). Discrimination in tenant selection is both a civil wrong (entitling the prospective tenant to damages) and a criminal offence — three years' imprisonment and a €45,000 fine under C. pén. Art. 225-2.

The landlord or their agent may only request a limited statutory list of documents from a prospective tenant: one identity document; one proof of address document; proof of professional activity; and proof of income (recent payslips, last or penultimate tax notice, last two balance sheets for non-salaried persons, or benefit/pension documentation). Requesting any document outside this list is an administrative offence punishable by a fine of up to €3,000 (€15,000 for legal entities).

Security Deposit

The security deposit (dépôt de garantie) for an unfurnished residential lease is capped at one month's rent excluding charges. It carries no interest in favour of the tenant and may not be revised during the lease or at renewal. No deposit may be demanded where rent is payable in advance for more than two months. The deposit must be returned within two months of the tenant returning the keys — or within one month if the exit report matches the entry report. Late return is penalised at 10% of the monthly rent per month of delay. Deductions from the deposit for damages or unpaid charges must be duly evidenced.

Rent: Setting, Review, and Controls

Free zones and frozen zones

In principle, the rent on a new letting or reletting is freely agreed between the parties. However, since 24 August 2022, properties rated class F or G may not be re-let at a rent exceeding the previous tenant's rent — no increase is permitted on reletting or renewal for these properties, regardless of whether the rent is under-evaluated.

Encadrement des loyers (Élan experimental scheme)

The Élan Act's rent control scheme applies experimentally until 24 November 2026 in specific zones tendues identified by decree (Loi 2018-1021 du 23 novembre 2018, Art. 140). In these zones, a prefectoral order published annually sets three reference rents per category of dwelling: a loyer de référence, a loyer de référence majoré (20% above), and a loyer de référence minoré (30% below). The rent in any new letting or reletting may not exceed the loyer de référence majoré. The applicable rent ceiling must be stated in the lease.

A complément de loyer may be added for exceptional characteristics — but not where the property has shared external bathrooms, signs of damp, an F or G energy rating, abnormally draughty windows, a visual obstruction within 10 metres, infiltration or flooding history, drainage problems, or degraded electrical installation. The scheme currently applies to: Paris, Lille, Lyon, Villeurbanne, Montpellier, Bordeaux, and the EPT Plaine Commune and Est Ensemble territories. Violations: fine up to €5,000 (natural persons) or €15,000 (legal entities).

Annual rent review (IRL)

Rent may only be revised if the lease contains an explicit revision clause. Revisions are annual, at the contractually agreed date. Increases are capped at the variation of the Indice de Référence des Loyers (IRL) published by INSEE. For leases concluded, renewed, or tacitly renewed from 24 August 2022, IRL increases were capped at 3.5% for mainland France for the period covering Q3 2022 to Q2 2023. No IRL increase is possible for F and G rated properties. The landlord has one year to apply for a revision and is deemed to have waived it if they do not act in time.

Rent increase for under-evaluated leases

On renewal, where the rent is manifestly under-evaluated relative to comparable properties in the neighbourhood, the landlord may propose an increase. For properties outside Élan-controlled zones, the proposed increase may not exceed half the difference between the market rent and the current rent (adjusted by IRL variation). The proposal must be notified at least six months before lease expiry, by registered letter, stating the new rent and the comparables used — a minimum of three comparables (six in agglomerations over one million inhabitants). Increases above 10% are spread over thirds or sixths depending on the lease duration.

Service Charges

Landlords may recover from tenants only the categories of charges set out in the exhaustive list in Décret 87-713 du 26 août 1987 (charges récupérables). These include: lift operating costs; cold and hot water consumption and heating; common area electricity, cleaning, and maintenance; refuse collection tax; and certain building personnel costs (garden staff, caretakers at 75% of remuneration where both cleaning and refuse functions are performed, 40% otherwise). Flat-rate charging is not permitted. Provisions are collected with annual reconciliation; one month before reconciliation, the landlord must provide a charge breakdown by category, and supporting documentation must be available for six months.

Lease Duration and Termination

Minimum duration

For unfurnished lettings to a natural person or a family civil company: minimum three years. Where the landlord is a legal entity (other than a family civil company): minimum six years. Short-term leases of at least one year but less than three are possible for natural person landlords where professional or family circumstances (verified by a sworn statement) justify a predictable return to occupation — but this reason must be stated in the lease. If the stated event does not materialise, the lease automatically extends to the full three-year term.

Tenant's notice

The tenant may give notice at any time with a one-month notice period (instead of three months) in: zones tendues; where the tenant is relocated professionally; receives RSA or AAH; or leaves due to health reasons. In all other cases, three months' notice is standard. Notice must be given by registered letter or bailiff's act.

Landlord's notice

The landlord may only give notice for lease-end (six months before expiry) on three grounds: owner recovery (to occupy themselves or house certain close family members); sale of the property (the tenant has a right of first refusal); or a legitimate and serious reason (typically non-payment of rent or breach of lease obligations). The notice must state the reason. Fraudulent notices are criminal offences: up to €6,000 for natural persons, €30,000 for legal entities.

Tax Regime: Revenus Fonciers

Rents from unfurnished residential lettings received by private individuals (or by SCIs whose income is taxed in the hands of their members) are taxed as revenus fonciers (real property income). Two regimes apply:

• Micro-foncier: available where annual receipts do not exceed €15,000. A flat 30% deduction (abattement forfaitaire) applies to gross receipts, with no ability to deduct actual expenses or to carry a deficit.
• Régime réel: mandatory above €15,000; optional below. Actual deductible charges (mortgage interest, insurance, management fees, repair costs, property tax, etc.) are deducted from gross receipts. A déficit foncier arising from deductible expenses (excluding mortgage interest) may be charged against global income up to €10,700 per year, with the balance carried forward against rental income for ten years.

Investment tax incentives currently or recently available include: the Pinel scheme (available for new-build investments completed up to 31 December 2024, offering income tax reductions of up to 21% over 12 years, subject to rent and income ceiling conditions); and the Denormandie scheme (for qualifying renovation investments in town-centre properties in eligible municipalities, concluded between 1 January 2019 and 31 December 2023, eligible for Pinel-equivalent reductions).

This article covers unfurnished residential lettings under the loi du 6 juillet 1989. Furnished residential lettings, including location meublée and short-term tourist rentals, are covered in a separate article. The energy performance timeline references CCH Art. L 173-1-1 as enacted by the loi Climat (Loi 2021-1104 du 22 août 2021). Rent control (encadrement des loyers) zones and prefectoral reference rents change annually; readers should verify current orders with the local préfecture. References are correct to the best of the author's knowledge as of the date of publication.