Since November 2021, the Lyon Metropolis has implemented a new rent control system in the cities of Lyon and Villeurbanne, which will be in place until November 2026. These cities have been experiencing high rental tension in recent years, which is why the law of November 23, 2018 was passed with the aim of combating excessively high rents and limiting abusive rent increases. This system will be maintained until November 2026.
The principle of rent control
Rent control consists of determining a maximum limit that landlords cannot exceed. The landlord sets a reference rent amount per square meter as well as a maximum reference rent amount per square meter, which cannot exceed 20%. The reference rents are determined based on various criteria such as the number of rooms, location, year of construction, and type of rental (furnished/unfurnished).
Affected properties
Rent control applies to both unfurnished and furnished properties, whether they are primary residences or used for professional purposes. Rent control does not apply to the following properties: social housing (HLM), properties under Anah agreements, seasonal rentals, and furnished properties located in serviced residences.
How to find out the rent control for your property
The Toodego website allows landlords to determine the rent limit and allows tenants to check if their rent complies with the established rent control. A simulator is available at the following link: https://demarches.toodego.com/logement/encadrement-des-loyers/
Sanctions for landlords
If a landlord does not comply with rent control, they may be required by the prefect to reduce their rent and reimburse the tenant for any excess amount collected. If the landlord refuses, they may be fined up to €5,000 if they are an individual or €15,000 if they are a legal entity such as an SCI (real estate investment company).