Many disputes arise due to errors made during the drafting of leases. The numerous rules in this area are often unknown to landlords who manage their rental properties themselves, exposing them to various penalties, ranging from a simple fine to the annulment of the lease itself! Qlower has highlighted some of the consequences that may arise from errors within your lease agreement.
Often, the reduction of the rent applied can occur at the tenant’s request when the estimation of the living area is incorrect. This happens especially when the area mentioned in the lease agreement corresponds to the “Carrez” surface instead of the “Boutin” surface. Indeed, many landlords mistakenly use the “Carrez” surface (private area), whereas for living area measurements, the “Boutin” surface should be used as a reference. Here’s how these areas are calculated:
Thus, the “Boutin” surface may, in some cases, exclude more spaces from its calculation. Mistaking the calculation method can lead to a significant difference between the “legal” living area (Boutin) and the one mentioned in the lease (Carrez or others). If the “legal” living area of the rented property is more than 5% smaller than the area mentioned in the contract, the tenant can request a proportional reduction in rent to match the discrepancy.
Judges often require the refund of overpaid rent in cases of disputes over the rent applied to the lease. If the rent paid by the tenant exceeds the amount the landlord is legally entitled to charge, the judge may order the landlord to refund the overpayment to the tenant.
This frequently occurs in areas where rent is capped (e.g., Paris or Lille). In such areas, the rent applied by the landlord must not exceed the maximum reference rent, which is calculated based on various criteria (building’s age, number of main rooms, address, etc.). If a dispute arises from an excessively high rent, the landlord may be required to repay the tenant the excess rent collected since the error was made. This is why indicating the maximum reference rent in the lease has been made mandatory for affected properties.
Fines are another penalty landlords may face, in addition to refunding overpayments, if they set rent higher than the applicable maximum reference rent. The fine can go up to €5,000 for an individual landlord or €15,000 for a corporate landlord.
Fines can also be imposed in other situations, such as when the landlord violates the rental permit system established in many municipalities or chooses to rent out an unsanitary property despite the municipality’s refusal. For example, in early 2021, a landlord in a town in Essonne in France was fined €15,000 for such a violation!
In the most extreme cases, certain errors can lead to the nullity of the lease agreement. This can occur, for example, when the landlord fails to comply with the standard lease model set by the ALUR law, which regulates residential lease agreements. In some cases, the absence of certain clauses in the contract can disadvantage or even deceive the tenant.
For instance, if the lease does not include an annexed Technical Diagnostic File (DDT), and this omission leads the tenant to overlook essential characteristics of the property, the lease agreement may be annulled. Fortunately, reaching this extreme usually requires proving fraudulent intent on the landlord’s part to conceal certain characteristics from the tenant.
The list of potential consequences of errors in a lease agreement is actually much longer and more varied. Protecting yourself effectively is essential to avoid disputes in rental matters. Qlower provides its clients with all the compliant and customizable legal documents they need to avoid errors and put themselves in the best possible position in case of a dispute.
For clients who may have concerns about their current lease, Qlower’s teams have developed a lease audit service that helps reassure them at best and make them aware of risks at worst (as well as solutions to anticipate problems).
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