Article 140 of the Élan Law (passed at the end of 2018) introduces the rent control system for candidate cities, particularly, as an experimental measure, for Paris, for a period of 5 years. Rent control in Paris has been in effect again since the end of July 2019, regardless of the nature of the property rented as the main residence. When it comes to renting luxury properties, landlords can charge an additional rent supplement, provided they meet certain criteria. Rent control according to the Élan Law: how does it work? Rent control is therefore making a comeback, in accordance with the Élan Law, in candidate cities. For Paris, an order published in May 2019 sets the reference rents not to be exceeded. To comply with rent control, a landlord must set the rent (excluding charges) between the reduced reference rent (30% below the reference rent) and the increased reference rent (20% above the reference rent). For information, landlords can find the reference rents by neighborhood on the website of the Regional and Interdepartmental Directorate of Housing and Accommodation (DRIHL). How to bypass rent control with supplements? To prevent a decrease in the rental offer, especially in tense areas where it is difficult for people to find housing, the legislator has allowed landlords to set a rent supplement. However, be careful: this additional rent must be mentioned in the rental agreement. It is added to the base rent. Moreover, there is no exact definition of the rent supplement; the legislator refers to exceptional characteristics compared to neighboring properties of the same category. The absence of a list of characteristics defined by law may give rise to disputes between landlords and tenants, before the departmental conciliation commission. It should be noted that the tenant can bring the matter before this commission within 3 months of the conclusion of the lease containing this clause. To be justified, a rent supplement must present elements that are out of the ordinary, as detailed by the DRIHL. For example, the provision of a parking space or a storage room is considered as elements included in the rent. The same goes for household equipment such as a refrigerator, dishwasher, or oven provided by the landlord. A nice view may not always justify a rent supplement. However, the conciliation commission in Paris has recognized that the existence of a private garden in the 16th arrondissement of Paris is a sought-after element because it is extremely rare and can therefore justify the application of a rent supplement. In the event of a dispute, the conciliation commission of the DRIHL will determine whether or not the element that justified the application of this supplement qualifies as exceptional. Invest in luxury rental real estate with Michaël Zingraf Real Estate With extensive experience in the field of luxury real estate and a wide portfolio of properties, the professionals at Michaël Zingraf Real Estate will advise and guide you in your rental investment projects.