Can I Raise the Rent Every Year?

Yes, you can raise the rent every year, but only if the lease includes a rent review clause, and only up to the change in the IRL (indice de référence des loyers, France’s official rent reference index). It’s one of the rules that shape long-term rental management, with a few exceptions you need to know before acting.

Conditions for a rent review

You can only raise the rent if the lease includes a rent review clause. If it doesn’t, the rent stays frozen for the whole rental period, so check your contract first, whether the home is rented furnished or unfurnished.

The review takes place on the date set in the lease or, failing that, on the contract’s anniversary date. It has to follow the change in the IRL, published every quarter by INSEE (France’s national statistics office). That’s the cap you can’t exceed. The calculation works like this:

Revised rent = rent excluding service charges × (applicable IRL / previous IRL)

You have one year from the scheduled review date to make your request. After that, you lose the right to the increase for the past year: the review then only takes effect from your next request.

When a rent review is blocked

Since August 24, 2022, the law bans any rent increase, including the annual review, for homes rated F or G on the DPE (France’s mandatory energy performance certificate). The rent stays frozen at what the previous tenant paid, whether a new tenant moves in, the lease is renewed, or the annual review comes up.

In high-demand areas (large urban areas where the rental market is especially tight), rent increases are also capped when a home gets a new tenant or a lease is renewed, with exceptions (a clearly underpriced home, recent renovation work). This cap adds to the annual review rules rather than replacing them, so check both before you set your rent amount.

Notify your tenant the right way

You have to notify your tenant in writing and give them all the details: the IRL used, the calculation, and the effective date. Be clear to avoid misunderstandings, and keep proof that you sent it. That document is what counts if the tenant disputes the review, just like the costs you list on top of the rent.

A home with a good DPE rating and no ongoing proceedings or disputes keeps you clear of most of these blockers. If you’d like to handle this review without thinking about it every year, see how Unlocker supports property owners in tracking their rent.