Rent control in Montpellier: the system is launched

Among the many measures put in place for better access to housing is the control of rents. So far, only certain cities have been able to benefit from it, but the city of Montpellier will soon apply this system. To find out all about rent control in Montpellier, take a look at this article.

Rent control in Montpellier: what does it consist of?

The regulation of rents in Montpellier has been discussed for almost two years, and it is soon time for it to see the light of day. Until now, this framework only concerned ten cities, eight of which are in Seine-Saint-Denis, as well as Paris and Lille. To benefit from this system, these cities have justified a significant difference between the rent of housing in the private rental stock and that of the social rental stock, a high median rent and a low share of housing under construction. The rents for housing in these municipalities were then capped to prevent a surge in rents in areas where the supply of housing is lower than the demand for housing, i.e. tense areas.

The same principle will be applied to the rents of the city of Montpellier, whose application has been submitted since November 23, 2020 to participate in this experiment. After having seen its candidacy validated on September 3, 2021, Montpellier is preparing for a big change. With an imposed maximum rent, the city will allow more people to find adequate housing that corresponds to their income and budget, without having to go through social housing.

Here is how this experimental rent control system works: defined by a prefectural decree, the maximum rent must be respected by each owner. To give you an overview, the prefect of Hérault sets the following rents each year:

• a reference rent,
• an increased reference rent, i.e. the reference rent + 20%, which gives the ceiling not to be exceeded,
• a reference rent minus the reference rent - 30%

In the event that it is not respected, a fine of up to €15,000 may be received depending on whether it is a physical or moral lessor. Several criteria define the maximum amount of a reference rent:

• the geographical area of ​​the accommodation,
• its time of construction,
• the number of rooms in the accommodation,
• whether the accommodation is empty or furnished.

The decision of the metropolis of Montpellier to use this type of device is justified by the price of rents which is among the highest in France. In a city where the poverty rate is higher than the national average, ie 19% against 14%, such high rents remain very inaccessible for most Montpellier households. In addition, the city is experiencing a severe shortage of housing due to the fact that most housing is rented for tourist purposes, i.e. more than 6,000 housing units.

We have prepared a list of accommodation affected by the framework and those that are not.

Concerned:

• empty and furnished rentals,
• main residences
• mixed-use residences, either main and professional,
• the mobility lease.

Not affected:

• ANAH approved accommodation
• housing managed by an HLM or SEM organization
• housing subject to the 1948 law
• furnished accommodation intended for tourism, i.e. seasonal rental contracts,
• furnished accommodation operated or managed with services

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The dates in 2022 for the supervision of rents in Montpellier

To find your way around the important dates concerning rent control, here is a short summary for you:

• November 23, 2020: the city of Montpellier submits its application for the experimental rent control system
• September 3, 2021: the Ministry of Housing validates Montpellier's candidacy as well as those of Lyon and Bordeaux
• May 24, 2022: publication of the decree concerning the regulation of rents in Montpellier
• July 1, 2022: the rent control system is launched in Montpellier
• July 1, 2027: supposed end of the rent control experiment in Montpellier

From July 1, 2022, the rent framework will thus apply, which will apply to all leases signed from this date, namely:

• lease renewals,
• changes of tenants,
• the first rentals,
• mobility leases.

If you intend to move to Montpellier very soon, be aware that any contract signed after the date of July 1, 2022 will be affected by this device. Don't wait any longer and start your accommodation search on Studapart. We offer accommodation throughout the year throughout France and you can be sure of being guided throughout your process. With more than 170,000 verified ads and this new device, you can put the odds on your side to find an apartment.