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Wednesday 16 November 2011
 

An increase of 1.9% per year on rent

 
An increase of 1.9% per year on rent
 

For some time now, renters are faced with a continuing rise in the benchmark rentTowards the end of the quarter of the current year, the progress of the IRL was 1.9%This increase is bad news for tenants, because the owners will have to increase the rent

 

The largest increase in 3 years

 

The increase in the benchmark rents is a situation that is noted for some timeIn the first quarter, for example, the increase was 1.6%, from 1.73 in the second quarter to reach 1.90% by the third quarterApart from the last three quarters, we must also note that has now come to a seventh straight increase

 

It is essential to take account of inflation in determining the indexIndeed, the main cause of this increase is steady inflation, with a figure of 2.2% per yearThe result of this is that donors are required to increase the amount of rent that it is necessary to fill gapsHowever, a ceiling is set in the increased amount of theseAccording to figures that were published, the lessor shall not exceed 1.90% per year in higher prices of these

 

It should, however, noted that during the crisis, there was a small slowdown in the growth figures for fresh start later2011 thus records the largest increase since the peak in 2009

 

In the words of the law

 

Generally, a lease must contain a clause that refers to the conditions of rent increasesThe increase of these is a right for the landlord so that it can prevent inflation in consumer pricesIt is also possible that the owner of the local reviews the amount thereof upon the renewal of the lease or whether to undertake rehabilitation

 

The increase is attributed to them must be based on the benchmark for this area, according to the law of July 6, 1989In addition, the index determines the ceiling should not exceed in determining the amount of theseThe determination of the IRL is from the average consumer price increase noted in the previous yearIf this is not done, the lessor may base the operation on the last index that was published

 

Update on the rental in France

 

With the crisis in the real estate sector, more and more households are turning to leasing rather than purchase a new homeSince 2009, the market for rental house or apartment has grown by 8.6%

 

The development of this sector has led a significant increase in rents as evidenced by the following figures:

 

- 2.90%: the increase per year lease of two parts- For three parts, it is more moderate with 0.68% each year- Similarly for the 4 pieces that show a minimal increase of 0.63%

 
Listed in: Real current events, Finance, Habitat

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