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When you rent an apartment in Monaco, be aware that it may be subject to a law. On this page, we will make you discover the law 887 which imposes certain rules on the owner and which gives more rights to the tenant. This law, which applies depending on the dwelling, must be considered when renting your future Monegasque home.
Housing in the Principality is divided into several sectors : the free sector, which does not impose specific rules. The state-run sector which reserves its property for its Monegasque national citizens. The regulated sector also says old sector subject to it has various laws including Bill 887 which we will discuss.
The Principality of Monaco differentiates between so-called "old " buildings prior to 1947 and modern buildings not subject to the various laws. Since the post-war period, Monaco has subjected these buildings to these laws in order to preserve tenants. These social texts aim to protect the inhabitants of the principality by allowing them to rent apartments without the need to settle outside the country to continue to reside and work in the country. We all know that property prices are high in Monaco. For this reason, in order to protect tenants, it is essential to preserve the economic and social fabric of the Principality of Monaco. Several laws exist and contribute to protecting the old rental sector, in particular, apartments under law 1235/1291 in Monaco and those under law 887 of June 1970. Over the years, the housing stock concerned by these laws is doomed to disappear since when a building is destroyed and rebuilt, it is no longer subject to these rules. However, when renting an apartment in Monaco, it is important to know the particularities generated by these regulations.
Law 887 imposes on the landlord the obligation to grant the tenant a six-year lease, renewable for periods of six years. However, the tenant can release himself from his lease each year. This first measure gives more flexibility to the tenant who can change apartments much more easily if he needs more rooms for example. Apartments subject to law 887 can be rented only to ascendants, descendants, spouse of the owner of the property or to other well-defined persons:
The lessor or our agency Petrini Exclusive Real Estate Monaco if the owner entrusts us with the management of his property, must provide the Monegasque Housing Directorate with supporting documents showing that tenants are eligible and have the right to rent his apartment. This law 887 unlike the 1235 (now 1291) leaves the landlord the freedom to set the amount of the rent. This policy aims to protect the habitants of Monaco. Locals can therefore benefit from these advantages.
Indeed, a dwelling subject to law poses more constraints to the owner. This laws protect the tenant and give priority of nationality. For this reason, before buying the property and going to the notary, it is necessary to know these particularities of Monegasque law. Firstly, check on the advertisement of the property what is mentioned. Generally thanks to the neighborhood, the building, the general condition of the property, we can have clues. The fact of having a view, parking, terrace, large kitchen are all elements to take into account during visits. If it is a modern building with new bedrooms, a large kitchen, a terrace with views and a parking bag that usually the apartment is free of any legislative constraint. However, the purchase of a property with law is sometimes strategic. Indeed, a property with constraints is a good that offers a cheaper price. It may have below-market prices of several hundred thousand euros. These properties are in period buildings and sometimes hide beautiful surprises. You can find in the city homes with large rooms and unconventional ceiling heights. Accommodations with gardens! Yes gardens in Monaco, it is possible. A garden in the city center, we tell you! We also want to point out that if you buy a property with your spouse to live there you will not be subject to any constraint. The rental constraints apply only to a potential tenant and not to you if you are housing and occupying the dwelling. Living with your spouse and building your life project in a home that offers beautiful spaces is quite possible.
Before the sale or purchase of this type of property at the notary, be aware that as an owner, you will be subject to the right of preemption of the State. The duration of this period is four weeks after the signing of the sales agreement at the notary.
To conclude, this political provision aspires to protect a certain category of individuals in Monaco. The tenant signs a contract with the landlord for a period of six years. The landlord is not obliged to renew the rental agreement after this period. The tenant can leave after a period of one year of rental and terminate his contract. The owner must point out that his dwelling is not occupied, he can only rent it to members of his family or to persons of Monegasque nationality or to residents with more than five years of residence and six months of professional activity. It can also accept people who have been working in Monaco for more than five years. These apartments are generally low-floor premises, as they are located in old buildings that generally do not have views, terraces or parking. You can open a premises with a liberal activity in these properties.
The latter, often exclusively in our agency, are located in historic districts of Monaco. Like the Monte-Carlo district or the Larousse Saint Roman district.
If you are considering a purchase or sale of this type of property our Monaco Real Estate Agency is at your disposal to help you in your project. From the creation of the advertisement to the sale at the notary our team will accompany you in all stages of acquisition or sale.
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