French landlords capped at 1.15% rent rise under strict legal rules

In France, landlords may adjust rent only once a year and must base the increase on the annual reference index (IRL). The IRL for the second quarter was revised upward by 1.15%, allowing a maximum rent raise of the same rate for leases signed, renewed or tacitly extended from 24 August 2022 in mainland France and from 1 July 2024 in overseas departments. The increase must be stipulated in the lease, cannot apply to properties classified F or G DPE, and may only occur after agreed‑upon renovation works.

A recent court decision also confirmed that a landlord could levy a €120 monthly surcharge for a studio with an elevator, citing exceptional equipment. The ruling, based on the 6 July 1989 law, highlights how supplementary rent can be justified for rare features such as high ceilings or views, and may influence future interpretations of rent‑supplement criteria.