Wednesday, April 13, 2011

Strong Increase of Benchmark Rents

The IRL has increased by 1.45% according to figures from INSEE. How to Negotiate rental increases? What recourse? Which locations are affected?
According to the latest figures from the INSEE on the benchmark rents published January 14, 2010, the IRL was up 1.45% over one year, with a constant upward trend throughout the year . Knowing that this index serves as a reference for owners with a house or apartment for rent, the rents will he grow? How to negotiate with the owner? What recourse in case of significant increase in the price of a rental property?

House or apartment for rent: how the rent is fixed? What accommodations are concerned?
The figures from INSEE on the benchmark rents, or IRL, have significant consequences for all occupants of a property for rent. Indeed, this measure allows owners to adjust the price of rents, including during the term of a tenancy, but under certain conditions.

Since 1 January 2006, this index serves as a reference for all units leased under the Act of July 6, 1989.

We should remember that under the terms of Act No. 89-462 of 6 July 1989 to improve rental, the IRL for:

premises for residential use or mixed-use main business and main dwelling,
garages,
parking spaces,
gardens and other premises, rented incidental to the main room by the same donor.
The IRL is also the benchmark for apartments, but does not include rentals, homes, housing or public housing rentals.

How to calculate the revisions of the rent for a property (housing, furnished, garage, etc.)?
If you rent, the opportunity to review annual (upward) price of rents during the lease is one of the key points to check before signing the lease. Indeed, a landlord can not increase the rent if the revisions are explicitly provided in the lease, with the date on which they must enter into force.

Knowing that this increase of rent shall not exceed the IRL, it is important to check the index before accepting any increase during the lease. Do not forget, if you are a tenant, the landlord may increase the rent once (again if these increases are planned in the lease) up to five years of reindexing not worked ...

To a simulated increase in rents, so you must consider not only the price of current rent, but also the benchmark provided by INSEE, and any number of years during which he has not increased. Be aware that the owner has the option, but not the obligation, to increase the rent to reflect the IRL. You will find here a tool for calculating the rent review.

Increase the rent during the lease: how to negotiate? What are the remedies?
To challenge a rent increase, the tenant must make several points:

A reassessment of the rent according to the IRL is it explicitly provided in the lease? If this is not the case, the landlord can raise the rent without your consent.
The increase exceeds Does the IRL over the last four quarters? This is not legal.
Negotiate ... you can always try to talk to your landlord, but remember to do it if possible by letter A / R to show your sincerity and your attempts at dialogue.
In case of rent increase that you consider unreasonable, you can enter the conciliation board, you will find here a model of free sample letter to contest the rent increase

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