Laws 1.235 and 887

Laws 1.235 and 887 are important legislative texts in the regulation of the real estate market in Monaco. They mainly govern the rental of accommodation in the Principality, with the objectives of protecting tenants and regulating rental conditions. These laws illustrate the Principality's commitment to guaranteeing fair access to housing while maintaining a quality living environment for its residents. Here is the information you need to know about these two laws.

Generalities

The so-called "under law" apartments are located in bourgeois residences built before 1947. These old buildings are found in the different districts of the Principality, notably in Monte-Carlo, La Condamine and le Rocher. Due to the different standing of these residences compared to the luxurious buildings in the Principality, the apartments are offered at more attractive prices per square meter and therefore offer the possibility of access to the property to another, more local clientele. Anyone can buy an apartment under the law in Monaco, there are no regulations regarding ownership. The buyer will be able to freely occupy their apartment as a primary residence or secondary residence.

However, in terms of rental, the conditions for allocation of Apartments are regulated - Also, an order of allocation has been defined by the Monegasque Government and applications are processed according to this order:

- Category 1: Citizens of Monegasque nationality,
- Category 2: Joint citizens or children of Monegasques,
- Category 3: The “Grandchildren of the Country”, having at least one “Child of the Country” parent,
- Category 4: “Children of the Country”, citizens born in Monaco and having always resided there since their birth,
- Category 5: Citizens who can prove they have lived in the Principality for more than 40 years.,

Applicants must demonstrate a level of resources compatible with the rent and charges for the accommodation requested. There are often income ceilings to ensure that subsidized or regulated housing benefits households in real need. The composition of the household is also taken into account, with a preference for families with children or the elderly.

Certain so-called Emergency situations can be taken into account as a priority, particularly in cases of emergency rehousing.

   
_{^{Crédits: Monte-Carlo Sotheby's International Realty - Condamine area}}

Law 1.235 amended / 1.291

Law 1.235, adopted on December 28, 2000, aims to regulate relations between landlords and tenants in housing matters. It is particularly significant for the protection of the rights of tenants, particularly those of nationals and long-term residents. It thus allows local residents to rent despite the difficulties of a tense market like that of Monaco. The main provisions of this law are as follows :

- Rent control:
The law imposes strict rules on the setting and review of rents for leases subject to this legislation. Rents are regulated to avoid excessive increases and guarantee a certain stability to tenants. The price per square meter is defined and controlled by the Housing Department, supervised by the Ministry of Finance of the Principality

- Duration and renewal of leases:
Leases are established for a period of 6 years, renewable for a similar period. The conditions for renewing leases are also governed by this law.
Tenants benefit from protections against arbitrary evictions and non-renewal of leases without legitimate reason. The tenant can terminate the lease each year on the anniversary date of the contract - the owner can only terminate it if he wishes to recover the apartment for a member of his family or for himself.

- Rights of elderly tenants:
Particular attention is paid to elderly tenants, with reinforced protections to avoid evictions and guarantee the continuity of their housing.

- Works and maintenance:
The obligations of owners in terms of work and maintenance of housing are clearly defined, thus ensuring that housing remains decent and secure.

   
_{^{Crédits: Monte-Carlo Sotheby's International Realty - Monaco Ville area}}

Law 887

Law 887, promulgated on June 25, 1970, is one of the fundamental laws concerning the rental of housing in Monaco. It was put in place to respond to the housing shortage and pressure on the real estate market. Here are the main provisions :
 

- Rent control:
Rents for housing subject to Law 887 are strictly regulated, with precise rules on rent increases. This makes it possible to maintain a certain stability in the rental market and to avoid sudden increases which could penalize tenants

- Duration of leases: Leases under Law 887 have a minimum legal duration of 6 years, providing additional security to tenants. Renewals are generally tacit, unless otherwise notified by the lessor under the conditions provided for by law.

As part of the allocation of apartments under law 887, in the event that no application from a Monegasque citizen has been made, the lessor can choose to rent the apartment to a worker in the Principality. The latter must have a 5-year employment contract in Monaco, or a 5-year residence in the Principality with an employment contract dating back more than 6 months.

***

Our real estate agency in Monaco is able to offer you numerous apartments for sale or rental in Monaco.

Monte-Carlo Sotheby’s International Realty, your real estate expert in Monaco