How to revise a rent: the IRL index and rent control in tight-supply areas

Annual rent revision: a clause and an index

During the lease, the rent can be revised only if the contract contains a revision clause (Article 17-1 of the Act of 6 July 1989). Without a clause, the rent remains fixed throughout the duration of the lease. The revision takes place once a year, on the date agreed in the contract or, failing that, on the anniversary date of the lease.

The increase is capped at the variation of the rent reference index (IRL), published each quarter by INSEE. The calculation is as follows: current rent multiplied by the new IRL of the reference quarter, divided by the IRL of the same quarter of the previous year. The reference quarter is the one provided for in the lease or, failing that, the one of the last index published on the signing date. IRL values change each quarter and the legislature may temporarily cap their variation, as was the case between 2022 and 2024: always check the applicable index on insee.fr.

Since the ALUR Act, the revision is not retroactive: the landlord has one year from the scheduled date to express their intention to revise. The revision takes effect only from the date of their request and, once this one-year period has passed, it is lost for the elapsed year.

Tight-supply area: the cap on the rent upon re-letting

In municipalities classified as tight-supply areas, a decree taken on the basis of Article 18 of the 1989 Act, renewed each year since 2012, caps the change in rent upon re-letting: the rent demanded from the new tenant cannot exceed the last rent applied to the previous tenant, possibly revised according to the IRL. Regulated exceptions exist, notably:

• Significant improvement works carried out since the departure of the previous tenant: regulated increase in proportion to the cost of the works
• Rent manifestly undervalued compared to neighborhood rents: increase limited to a fraction of the gap observed
• Dwelling let for the first time or unoccupied for more than eighteen months: free setting of the rent, subject to control of the level of rents where it applies

Control of the level of rents: the reference rents

In certain volunteer conurbations, Article 140 of the ELAN Act of 23 November 2018 introduced, on an experimental basis, a control of the level of rents. The prefect sets by order, by sector and by category of dwelling, a reference rent, an increased reference rent (+20%) and a reduced reference rent (-30%). The base rent of a new lease cannot exceed the increased reference rent. A rent supplement remains possible for exceptional characteristics of location or comfort, but it is excluded for dwellings with certain defects, including dwellings classified F or G on the EPC (DPE); the tenant has three months from signing to contest it before the departmental conciliation commission.

This notably concerns Paris, Lille (with Hellemmes and Lomme), the territories of Plaine Commune and Est Ensemble, Lyon and Villeurbanne, Montpellier, Bordeaux, as well as municipalities of the Basque Country conurbation. This experiment, extended by the 3DS Act until November 2026, may be subject to further legislative extensions or expansions: check whether your municipality is covered and whether the scheme is still in force on the date the lease is signed. In case of an overrun, the tenant may bring an action for rent reduction and the prefect may, after formal notice, impose an administrative fine that can reach 5,000 euros for a natural person and 15,000 euros for a legal entity.

Energy-inefficient dwellings: frozen rents

The Climate and Resilience Act of 22 August 2021 froze the rents of dwellings classified F or G on the EPC (DPE): for contracts concluded, renewed or tacitly renewed since 24 August 2022 in mainland France (with a distinct deadline in the overseas territories), any increase is prohibited, whether it is the annual IRL revision, an increase upon renewal, or a rise upon re-letting.

Energy performance has moreover become a criterion of decency: since 1 January 2025, a dwelling classified G no longer meets the minimum performance level required to be rented under a new contract, and the statutory timetable then provides for class F in 2028 and class E in 2034. This timetable is subject to regular legislative adjustments, notably for dwellings in condominiums or where works have been undertaken: check the state of the law in force before any rental.