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Rental Agents See Changes to Rental Laws

Agents to reduce tenant charges

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Robin Deering | Chamonix Editor | Published: 12 Jun 2013


Rental Agents See Changes to Rental Laws

A clamp down on abusive practises form rental agencies will see a number of changes to rental rules, according to Cécile Duflot the French Minister of Housing.

The plans are aim to cap agency costs and to regulate the rental activity.

The Ministers proposals are due to be included in the next housing bill. Among the most significant measures: estate agents will no longer be able to be systematically paid a month's rent from new tenants. They will only be allowed to charge for half of the costs of the inventory inspection and the drafting of the lease.
The total tenants liability will also be capped, to ensure that it matches the actual cost of the services and to limit abuse.
Property agents must clearly display the remuneration paid by each party.

Property management companies (known as syndics locally) will also be affected, notably all services that are currently subject to additional fees will be strictly limited. The list of charges to individuals will be required to be determined in advance and annual charges will not be allowed to be added to.
The bill hopes to improve transparency of property management companies prices.