How to Complete Form 751-SD in 2025
How to Complete the 751-SD Form in 2025: Your “Professional Activity Questionnaire”? Qlower has prepared a simple and effective guide to help you complete the
Qlower has written this article to detail the steps for recovering the Household Waste Collection Tax (TEOM): we will explain the calculation methods and present exceptions and specific cases. This way, you will learn how to optimize the management of your rental charges!
The Household Waste Collection Tax (TEOM) is a charge that property owners can recover from their tenants, in accordance with current legislation. Although it is included in the property tax, reimbursement by the tenant is possible, provided the correct procedures are followed.
The Household Waste Collection Tax (TEOM) is a local tax collected by municipalities to finance public waste collection and treatment services. It is calculated based on the property’s cadastral rental value and is generally associated with the property tax. Unlike other local taxes, the TEOM is not linked to the tenant’s income but depends on the characteristics of the property.
Municipalities can choose between two systems to finance waste collection services: TEOM or REOM.
For more information, you can consult the legislation on TEOM and REOM on Legifrance.
This represents the theoretical annual rent the property could generate. It serves as the basis for calculating the TEOM. The larger the property or the more desirable its location, the higher the cadastral rental value.
Each municipality sets a tax rate for the TEOM, which is voted on annually. This rate, applied to the cadastral rental value, determines the tax amount. Rates can vary significantly between municipalities.
Some municipalities add management fees to the TEOM. These additional fees are intended to cover the administrative costs of tax collection and can slightly increase the total amount due.
For a property with a cadastral rental value of €8,000 and a tax rate of 10%, the TEOM calculation would be as follows: :
TEOM Amount: €8,000 x 10% = €800
If management fees of 2% are applied, the total amount will be €816.
By default, the TEOM is owed by the property owner, who pays it along with the property tax. However, this charge is considered recoverable from the tenant, meaning the landlord can request reimbursement. Properties benefiting from a permanent property tax exemption are not subject to the TEOM.
As a recoverable charge, the TEOM must be reimbursed by the tenant. This principle applies as long as the property is occupied. The tenant is responsible for paying the TEOM for the period during which they occupy the property. In the absence of a specific clause in the lease, the law allows the landlord to recover this tax.
When the property is unoccupied for at least three consecutive months, the landlord can request a reduction of the TEOM. To do this, they must prove that the vacancy is beyond their control and affects the entire property.
Properties located in areas not covered by waste collection services are exempt from the TEOM. The landlord can contest the tax if they believe the service is not adequately provided.
Properties benefiting from a total and permanent property tax exemption, due to their use or special status, are also exempt from the TEOM.
The TEOM is considered a rental charge and is therefore recoverable from the tenant.
To recover the TEOM amount, the rented property must be the tenant’s primary residence, meaning the landlord cannot pass the TEOM cost onto seasonal rental tenants.
The property must obviously be subject to the property tax on built properties and must benefit from a waste collection service.
In the case of renting an unfurnished property, charge payments are made on a provision basis, meaning the landlord pays the charges, and reconciliation is done at the end of the year. In this case, the landlord must be able to justify the amounts.
For furnished rentals, charges are often fixed, and reconciliation at the end of the year is therefore not possible.
In the case of a shared tenancy, it will depend on the lease.
If the leases are individual, each tenant must pay their respective share.
However, if there is a single lease, the tenants must organize themselves to pay the TEOM in full to the landlord.
If the landlord opts for a single payment after receiving the tax notice, they must send a reimbursement request to the tenant and provide supporting documentation for the amount claimed (a copy of the notice itself).
Additionally, the charge breakdown must be provided to the tenant at least one month before the annual regularization of rental charges.
The TEOM is usually recovered after the issuance of the property tax notice, which occurs in September. The landlord must have paid the property tax before claiming reimbursement from the tenant.
The fiscal timeline to follow is as follows:
The landlord has a period of three years to claim the TEOM from the tenant, even if the tenant has already vacated the property. To avoid oversights, it is advisable to implement a system for tracking rental charges and to plan the regularization of charges systematically each year.
This method involves incorporating the TEOM into the monthly charges paid by the tenant, with an annual adjustment based on actual amounts.
To calculate the provisional charges, it is recommended to base them on the TEOM from the previous year, adjusted if necessary.
The landlord can invoice the TEOM to the tenant after receiving the property tax notice. This option provides greater transparency, as the tenant can directly see the claimed amount.
To ensure compliance and avoid disputes, the landlord must provide:
It is important to keep all supporting documents for at least three years, as this is the statute of limitations for recovering charges.
When the tenant vacates the property before the end of the year, the TEOM must be adjusted proportionally to the time they occupied the property.
The TEOM amount is calculated based on the number of months the tenant occupied the property. For example, if the tenant leaves in September, they will owe 9/12 of the annual TEOM.
The landlord must provide a detailed breakdown of the charges with a pro rata temporis calculation and, if possible, a copy of the property tax notice. Including this information in the move-out inspection report is recommended to avoid disputes.
The landlord can still recover the unpaid TEOM up to three years after the relevant year.
The methods for recovering the TEOM may vary between furnished and unfurnished rentals:
For seasonal rentals, recovering the TEOM is more complex due to the short stay durations. It is possible to pass this charge on to tenants by including it in the rental price or invoicing it separately if the stay exceeds one month.
The management of the TEOM within the context of joint ownership or an SCI (Société Civile Immobilière) follows specific rules.
The landlord must ensure that the lease clearly states the recoverability of the TEOM as a charge. Any charge regularization must be accompanied by supporting documents (e.g., property tax notice). Transparency in charge management is crucial to avoid disputes.
The tenant has the right to verify the amounts claimed, including requesting supporting documents. They may contest the charges if the amounts seem excessive or if the landlord fails to provide sufficient proof.
It is recommended to first resolve the dispute amicably by communicating clearly and providing all necessary supporting documents to justify the charges claimed.
If negotiation fails, the landlord may send a formal notice to the tenant. If the dispute persists, it is possible to refer the matter to the departmental conciliation commission. As a last resort, legal action may be pursued.
It is crucial to explicitly mention in the lease that the TEOM is part of the recoverable charges. This helps avoid disputes and ensures transparency with the tenant.
The lease should also specify the terms for the annual regularization of charges, including the TEOM, as well as the provision of supporting documents.
A rigorous management of rental charges is essential for annual regularization. Tools such as accounting software can help track expenses and payments.
Tip: Keep a record of all documents related to the charges to easily present them in case of a dispute.
To avoid unpleasant surprises, establish realistic provisions based on previous years’ amounts and regularly inform the tenant of charge adjustments.
It is important to keep all supporting documents for at least three years. This period corresponds to the statute of limitations for recovering charges from the tenant.
The TEOM cannot be directly deducted from rental income for landlords. However, in the case of an SCI subject to corporate tax (IS), the TEOM can be recorded as a deductible expense, which reduces the taxable profit.
The TEOM is calculated based on the property’s cadastral rental value and a rate set by the local authority. It may also include management fees.
The tenant is responsible for paying the TEOM, but the landlord recovers it after having paid the property tax
The landlord can include the TEOM in provisional charges or invoice it separately after receiving the property tax notice.
The tenant pays only the portion proportional to their occupancy period, calculated based on the departure date.
Yes, the landlord has up to three years to claim the TEOM, even after the tenant has vacated the property.
If the property is vacant for at least three months and the vacancy is beyond the landlord’s control, a reduction may be requested from the local authority.
The TEOM funds the waste collection service, while the housing tax contributes to the financing of local public services.
Properties not served by the waste collection service or those permanently exempt from property tax may also be exempt from the TEOM.
Qlower publie régulièrement des articles afin d’accompagner et de conseiller les propriétaires bailleurs sur des sujets récurrents dans le domaine de l’investissement immobilier.
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