Real estate rental refers to all operations that bind a landlord to a tenant through a lease agreement, whether it is an empty or furnished accommodation. Since January 1, 2025, renting a property is no longer just about finding a tenant and signing a lease: energy decency now conditions the right to rent, which changes the first step of any rental project.
EPC and energy decency: the filter before any rental
Before drafting an advertisement or setting a rent, the preliminary question concerns the energy class of the accommodation. The Climate and Resilience Law has amended Article 6 of the law of July 6, 1989: since January 1, 2025, a property classified G on the EPC is legally prohibited from being rented in metropolitan France. No new lease, renewal, or tacit extension can be signed for this type of property.
The timeline does not stop there. The threshold will rise to E in 2028, and then to D in 2034. A landlord renting a property below the current threshold is exposed to actions for rent reduction or even nullity of the lease. Therefore, before looking for a tenant, it is essential to ensure that the energy performance diagnosis is up to date and that the obtained class allows for rental.
For landlords whose property is in class F, the margin for maneuver is shrinking every year. Undertaking energy renovation work before renting is no longer a strategic choice; it is a legal obligation in the short term.
Real estate rental lease: furnished or unfurnished, a fiscal and legal choice
The type of lease determines the minimum duration of the contract, the applicable tax regime, and the equipment obligations. A unfurnished rental lease commits the landlord for a minimum of three years (six years for a legal entity). The furnished lease, on the other hand, lasts a minimum of one year, or nine months for a student.
From a tax perspective, furnished rental allows for declaring rental income as industrial and commercial profits (BIC), with a flat-rate allowance or the deduction of actual expenses depending on the chosen regime. Unfurnished rental falls under property income. The furnished option generates higher rents but requires complete and regulated furniture: bedding, cooking plates, refrigerator, table, lighting, among others.
This choice also impacts tenant turnover. A shorter furnished lease promotes flexibility but increases vacancy periods and refurbishment costs. A property located in a high-demand rental area handles this turnover better than a property in a relaxed zone. You can access the rental page on Immobilier Hebdo to compare rental dynamics across geographic sectors.
Setting the rent and regulation: the rules to know
Setting a rent is not done on a whim. In tight areas (Paris, Lyon, Lille, Montpellier, Bordeaux, and other urban areas), a rent control system imposes a reference rent that must not be exceeded.
Outside of tight areas, the rent is free for a first rental. However, for a property already rented, the landlord cannot increase the rent beyond the rent reference index (IRL) published quarterly, unless there are significant improvement works or the rent is manifestly undervalued.
Concrete criteria for estimating rent
- The living area and the precise location of the property (neighborhood, proximity to transport, shops) remain the two primary price factors in the rental market
- The general condition of the accommodation and its energy class directly influence attractiveness: a property classified D rents faster than a property in F, at equal surface area
- Recoverable charges (provision or flat rate for furnished) must be estimated as accurately as possible to avoid conflicting adjustments at the end of the year
For properties classified F or G, a rent freeze applies: the landlord cannot increase the rent between two tenants or during the lease. This constraint has been in place since 2022 and remains in effect as long as the property does not reach class E.
Tenant selection and guarantees: what the law allows
The selection of a tenant is regulated by the law of July 6, 1989. The landlord can request proof of income, a tax notice, an employment certificate, and an identity document. However, certain documents are prohibited: bank statements, medical records, criminal record extracts, or account management certificates.
On the guarantee side, two systems coexist:
- The joint guarantee, where a third party (often a relative) commits to paying the rent in case of tenant default
- The Visale guarantee, offered by Action Logement, which covers unpaid rents and property damage at no cost to the tenant or the landlord
- Unpaid rent insurance (GLI), taken out by the landlord, which covers unpaid rents but cannot be combined with a joint guarantee unless the tenant is a student or apprentice
The choice between these systems depends on the profile of the targeted tenant. The GLI offers broader coverage (damage, litigation costs) but represents an annual cost for the landlord.
Mandatory diagnostics for rental: list and validity
The technical diagnostics file (DDT) must be attached to the lease. Its content varies according to the age of the building, its location, and the type of installation:
- EPC (valid for ten years, unless carried out before July 2021, in which case the validity is reduced)
- Electrical and gas diagnosis if the installations are over fifteen years old (validity six years)
- Lead exposure risk report (CREP) for properties built before 1949
- Risk and pollution state (ERP), to be renewed every six months
A missing or expired diagnosis can be invoked by the tenant to request compliance, a rent reduction, or, in the most serious cases, lease termination. A complete DDT protects both the landlord and the tenant.
The French rental market is going through a period of tension in many urban areas, with a declining supply and rising rents. A landlord who masters the current regulatory framework, particularly the energy decency thresholds and the control rules, secures their rental investment in the long term and limits the risks of litigation.
