It is mainly the french Law of July 6. 1989 that governs relations between landlors and tenants. Essentially, those texts are public and the parties may not depart from them. However, they do not apply to furnished lets which come under oridnary law (Articles 1714 to 1762 of the Code Civil).

LEASE

Contents of the lease

Form of the letting contract

The Law of July 6, 1989 (Article 3) requires that a lease be drawn up in writing, and signed by the lessor (landlor) and by the lessee (tenant). The contract may take form either of a privately signed deed, or of a deed signed before a notary. In the former case, the contract is drafted on ordinary paper and signed by the parties who each receive one original. In the latter case, the contract is established by the notary, and a copy is issued to each of the parties. As for the possibility of entering into a letting contract via the Internet, jurisprudence has not yet ruled on the validity of such contract. French doctrine is divided on this point. As positive law currently stands, avoidance of the contract cannot be excluded.

Obligatory clauses (Article 3)

The following must appear in the contract : the name of the lessor, their home address or their registered office when they are a company and, where applicable, the name and address of their agent, the date on which the contract starts to apply, and its term, a precise description of the dwelling, the use to be made of it, the list of the common areas, the amount of the rent, and the terms of payment and revision thereof, and finally the amount of the deposit where applicable.

The letting contract must also specify in clear and legible clause, the noise zone in which the property is located.

The following must also be appended to the contract : an inventory, a copy of the collective letting agreement entered into for the building containing the let premises when such an argreement exists, the extracts from the cownership rules that concern the use that is to be made of the building, the enjoyment and usage of the private areas, and the number of "thousandths" of the let dwelling for each category of  service charges if the building is a owned building. The references of the rent are also mentioned whenever the amount is set by reference to the rents practised in the neighbourhood.

Finally, certain clauses that would put obligations that are too heavy on the tenant and that might appear in the contract would be considered as abusive and deemed not be written (Article 4, July 6 1989)

Obligations of the parties to the contract

Obligations of the landlor

-The landlor must hand over to the tenant a dwelling that is decent, i.e that does not show any manifest risk that might harme the physical safety or health of the occupants, and that provided with conveniences that make the dwelling suitable for use as housing. If the dwelling does not satisfy the conditions of decency, the tenant may demand that it be brought into compliance.

-The landlor must hand over a dwelling in a good state of use and of repair (Article 1720 of the code Civil); otherwise the parties may agree for the tenant to do the work; in exchange, the tenant could enjoy a rent reduction.

-The landlor must ensure that the tenant may enjoy undisturbed use of the dwelling.

-The cost of the following must be borne by the landlor : all repairs not coming under the category of service charges payable by the tenant (Article 1719 of the Code Civil). The landlor is obliged to have such repairs done when they are essential for keeping the dwelling in a proper state.

 If the landlor refuses to perform their obligations, the tenant may instigate proceedings for obtaining an injunction to perform those obligations before the courts;under no circumstances should the tenant cease to pay the rent.

Obligations of the tenant

The tenant must pay the rent and all service charges justified by documentary evidence by the dates scheduled, and must insure themselves against tenant's risks (water damage, and fire). Failing proof of the existance of the insurance contract or of payment of the prenium, the lease may be cancelled at the request of the landlord.

The tenant must use the premises as a good member of the community (i.e the tenant must not commit any improper use : e.g disturbing the peace at night, transforming the premises into places of debauchery) and must comply with the use for which the let premises is intended.

At the end of the lease, the tenant must return the premises in the state in which they found them when they took possession and began to benefit from enjoyment of them, considering the normal wear involved in such enjoyment and the ageing of the premises as time goes by.

Therefore, the tenant must make certain repairs referred to as "tenant's repairs". Finally, the tenant must bear the cost of the ordinary cleaning and upkeep of the building.

Term of the lease

The term of the lease is at least a minimum of 3 years if the landlord is a private individual or a family civil property firm, or when the property is jointly possessed. However, the lease may be enterred into for a year, if the landlor wishes to take back possession of the dwelling for a family or professionnal reasons, provided that the reason given in the letting contract.

The term of the lease is at least a minimum of 6 years if the landlor is a legal person (body corporate).

The tenant may leave at any time provided that they give at least 3 months notice. The notice period is reduced to one month in the event of loss of employment,transfer, or if the tenant is over 60 years old and their state of health justifies a change of residence.

At the end of the contract, the landlor may end the tenancy only if they indicate their wish to repossess the dwelling in order to occupy it or to have it occupied by close kin, or their decision to self it, or finally, the existence of a legitimate and serious reason, such as the tenant not complying with their obligations.

Renewal of the contract.

The lease contract may be renewed either tacitly or formally, for a term of 3 years if the landlor is a natural person (private individual) or an entity considered to be natural person, or for a term of 6 years if the landlor is a legal entity.

RENT AND TENANT'S SERVICE CHARGES

Setting of the rent

The initial rent is set freely between the landlor and the tenant.

Revision of the rent during the course of the lease

A clause in the letting contract may make provision for the rent to be revised annually. The inscrease can then be greater than the variation in the average of the building cost index over four quarters. That reference average must appear in the letting contract. Failing that, the average known at the time of singing of the contract will prevail.

In the absence of any clause, the rent remains unchanged throughout the term of the let.

Renewal at the end of the lease

In principle, the rent is not re-assessed in any way at the time of renewal unless it is manifestly under-assessed. The landlor may then propose an increase in rent six month before the end of the lease. For setting the new rent, the landlor must refer to the rents usually observed in the neighbourhood for comparable dwellings. Failing an agreement between the parties as observed by the conciliation commission, it falls to the landlord to refer the matter to the courts.

In certain conurbations determined by decree (e.g Paris), increasing rents when leases are renewed is regulated. The rent can then be increased only within the limit of the variation in the average, over four quarters, of the building index published by INSEE (French National Institute for Statistics and Economic Surveys).

Tenant's service charges

They are of three types :

-costs incurred for services related to the dwelling and to the use of building (water, and energy consumption; elements of equipment such as the collective central heating). :

-spending on maintenance and minor repairs for the common areas of the building;

-tenant's service charges and taxes corresponding to services enjoyed by the tenant, such as collection of household refuse or sewage treatment.

FURNISHED DWELLING

Contents of the letting contract

The letting contract must contain the following elements :

-the starting point and the term of the lease

-the use for which the premises are intended

-the amount of the rent, its payment and revision terms

-the list of services charges, repairs, and taxes that are to be paid by the tenant

-the amount of the deposit, where applicable

-the terms of notice.

The following must be appended to the contract : an inventory of the state of the premises, an itemised inventory of the furniture and of its state, signed by both parties. The inventory of the state of the premises describes the dwelling and its equipment. By comparing the inventory of the state of the premises on arrival and on departure, the landlord may ask the tenant to repair certain elements that have been damaged.

Obligations of the landlord

The landlord is obliged to hand over a dwelling that is decent. If the dwelling does not satisfy conditions of decency, the tenant may ask the landlor to bring it into compliance without the validity of the contract being adversely affected.

In addition, the landlor must also make available to the tenant the equipment and the furniture that are contained in the dwelling in a good state of repair and use.

Finally, the landlor must ensure that the tenant can enjoy the dwellin undisturbed.

Obligations of the tenant

The tenant must pay the rent and the service charges on the terms agreed in the lease, and must use the let premises without creating any disturbance, in compliance with the use allotted to them in the letting contract.

The tenant is liable for any losses and damage occuring during the term of the lease on the premises of which they have exclusive enjoyment (except in cases of force majeure or when the fault lies with the landlor).

In any event, the parties are free to set the amount of the rent, and its payment and revisions terms.