Rent revision is not merely a financial adjustment. It is a management tool that must balance profitability, regulatory compliance, and the preservation of a stable landlord-tenant relationship.
Rent Revision: Increase Based on the Rent Reference Index (IRL)
Each year, landlords may revise the rent based on the Rent Reference Index (IRL), published quarterly by INSEE.
The IRL reflects the average evolution of consumer prices (excluding tobacco and rents) over the previous twelve months.
To apply the increase, the landlord must notify the tenant by registered letter with acknowledgment of receipt.
The calculation is as follows:
New rent = Current rent (excluding charges) × (IRL at the time of revision / IRL for the same quarter of the previous year)
In practice, this revaluation is relatively limited in 2025. The IRL has been capped at 3.5% per year since October 22, 2022. With the IRL reduced to 1.40% in the first quarter of 2025, the authorized rent increase remains modest in a context that is not particularly favorable to landlords.
Increasing Rent Through Improvement Works
Another way to increase rent is by carrying out improvement works in the property.
Although the law does not precisely define this concept, case law considers improvement works to be those that:
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provide new equipment or superior quality features,
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sustainably reduce maintenance or operating costs,
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enhance the safety of property and occupants.
Examples include:
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installation of double-glazed windows,
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installation of a more energy-efficient heating system,
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installation of a reinforced security door,
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fitting a fully equipped kitchen.
Conversely, routine maintenance works (painting, replacing worn equipment, minor repairs) do not justify a rent increase.
To apply a rent increase following works, the cost of the improvements must represent at least 50% of one year’s rent.
Once completed, the landlord may apply an annual increase equivalent to 15% of the total cost of the works.
Example
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Annual rent: €12,000 (€1,000 per month)
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Cost of works: €6,000
→ Annual rent increase: €900
→ €75 additional per month
Higher Rents Upon Reletting
Between two tenants, rent revaluation follows different rules depending on the property’s location.
Outside high-demand areas (zones tendues), the landlord may increase the rent upon reletting, within the limits of IRL evolution.
In high-demand areas, the new rent may not exceed the rent applied to the previous tenant.
However, if the property has remained vacant for more than 18 months, a rent increase becomes possible — even in high-demand areas.