Regulations for rent increases and energy improvements

Regulations regarding rent increases vary based on property improvements and geographic location. In high-demand areas, landlords may increase rent following energy-related improvements, provided the rent is significantly undervalued compared to similar local properties. The increase is capped at either 15% of the actual cost of improvements or 50% of the difference between the current rent and the market average for similar properties.

In such high-demand zones, these increases are often phased in over the duration of the lease to prevent sudden spikes. In contrast, in low-demand areas, rent increases are permitted only if the property is clearly undervalued; energy-related improvements do not independently justify a rent hike in these regions.

Standard annual rent revisions are typically governed by the rent reference index (IRL) published by Insee. Tenants are encouraged to verify that revisions align with their lease agreements and legal caps to avoid abusive increases. If a tenant disputes a proposed increase, the matter may be referred to a departmental conciliation commission.