Annual rent review: who is affected and how much will the increase be? Following the publication of the new index linked to rising inflation, we take stock.
Will your rent go up soon? Each year the landlord-landlord has the opportunity to revise his amount taking into account the benchmark. The new IRL was just published on April 15 by the National Institute for Statistical and Economic Studies (Insee). The index of 1eee quarter 2022 now stands at 133.93, representing an annual increase of 2.48%. Recall that it had increased by 1.61% to 4and quarter 2021.
Under what conditions is the increase valid?
Your landlord cannot apply a higher increase. And it can only do so provided that the lease includes an annual rent review clause, which is provided for in the rent control law.
Two possibilities: the increase is scheduled for a fixed date in the lease or can be done on the anniversary date of the lease. The owner has one year to make the change.
This rent index applies to rental housing, whether furnished or not.
The servicepublic.fr website explains how the IRL is calculated. Corresponds to the average, over the last twelve months, of the change in the consumer price index without tobacco and rents. Therefore, inflation burdens the rent of the French, not just the shopping cart.
“The last peak of the IRL was observed in the fourth quarter of 2018 (+ 1.74%)”, recall our colleagues from BFMTV. The previous records for the evolution of the index date back to 2012 (+ 2.24%) and 2008 (+ 2.95% in the third quarter).
How the rent increase is calculated
To find out the exact amount of your rent increase, you need to do the following calculation. Current rent X new IRL of the contract reference quarter / IRL of the same quarter of the previous year = new rent.
So getting a rent of 600 euros, the rent will increase to 614 euros. 600 euros x (rent reference index for the 1st quarter 2022 / rent reference index for the 1st quarter of 2021).
The website of the National Agency for Housing Information (Anil) offers you a simulator to perform the calculation with three clicks.
What if you want to challenge an increase?
Not all homeowners are guaranteed this right to increase. “They think rents are already too high or they prefer to keep their tenant, especially in areas where demand is low,” Charlie Cailloux, a legal adviser, told Franceinfo.
If you want to challenge an increase because it does not match the IRL, you have three options.
- Write a registered letter, using this template posted on servicepublic.fr, explaining the issues you are experiencing.
- If there is no answer, you can enter a court settlement.
- As a last resort, you have one year to convict the protection judge from the date of the rent review.