Rental costs in Monaco: what to expect

In Monaco, the rules for renting an apartment are different from those in other countries. Do you want to move to Monaco and obtain Monegasque residency ? If so, this article details all the costs you need to plan for when renting your first apartment in Monaco.

Our agency, Petrini Exclusive Real Estate Monaco, is one of the best Monegasque agencies to support you in your project. We take care of all your administrative procedures: home insurance, subscription of electricity, water and internet contracts, but also the registration of your residential lease. We supervise all the steps for a quick and efficient rental. Our major asset, a responsiveness that is rare in the sector.

In this article, we will explain in detail all the fees that you are not aware of, so that you can plan everything you need and contact us directly so that we can find you your perfect property. We have access to the entire market, because in Monaco, all the agencies are interconnected. We therefore offer you all the properties directly and we are your only point of contact, which saves you time and energy. In addition, thanks to our professional software, we are aware of the latest properties available, unlike the internet and platforms where the ads may be obsolete or already rented. But, before contacting us directly, here are the costs to be expected.

Initial rental costs in Monaco

When renting an apartment in Monaco, it is crucial to understand the upfront costs you will need to plan for. These fees may seem high compared to other markets, but they are essential for securing your rental and meeting local requirements.

Rental fees in Monaco : Rent in advance

In Monaco, it is systematic for landlords to ask for several months' rent in advance. Generally, our agency applies three months' rent in advance, but some landlords may require up to four months. This upfront payment provides landlords with financial security and demonstrates your seriousness as a potential tenant.

Rental fees in Monaco : Security deposit

In addition to the rent in advance, a deposit is also required. The deposit in Monaco is often equal to three or four months' rent, plus provisions on charges. This sum is not intended to cover unpaid bills, but to pay for any damage to the apartment, the costs of new paint if they were not done at the exit, or other necessary repairs. This deposit will be returned at the end of your lease, provided that the apartment is returned in good condition. The agency has 2 months to return the deposit if the owner has entrusted it with the management.

Tenants must pay their rent regularly, and payments are usually taken quarterly by the agency. If you rent an apartment managed by our agency Petrini Exclusive Real Estate Monaco, we will send you a quarterly payment notice and you can pay by cheque, bank transfer or SEPA direct debit, set up at the time of the rental commitment.

Requirements for new residents

If you are already settled and resident in Monaco, the above rules apply directly. However, if you are not yet a resident of Monaco and wish to become one, several additional steps are necessary. You will need a bank certificate and a bank account in Monaco. 

To open a Monegasque bank account, you will need to plan for the account opening fees as well as a deposit of a minimum amount. Although there is no official amount, it is usually required to deposit around 500,000 euros to be able to open a bank account in Monaco. This bank account will allow you to pay the three months' deposit and the three months' rent in advance. Our website shows you the list of the different banks in Monaco that you can consult and contact directly via this link.

However, if you have no ties to Monaco and this is your first year in the principality, and you do not want to open a bank account in Monaco, landlords often ask for the year's payment in advance. This practice is intended to secure the tenancy due to previous cases where unattached tenants have escaped, leaving landlords without recourse. In these situations, some landlords may even refuse this option, but in general, to secure the rental, a one-year payment in advance is required.

In summary, to rent an apartment in Monaco, you must systematically plan for about six months' rent in initial costs to be able to book the apartment. If you are new to Monaco, it is crucial to plan for these additional steps and costs. Our agency is here to guide you through these steps and make sure you understand all the financial obligations related to your rental.

Administrative and agency fees

In addition to rents and deposits, there are several administrative and agency fees that must be taken into account when renting an apartment in Monaco. These fees may vary depending on the agency and the specifics of each rental contract.

Rental fees in Monaco : Agency fees

The agency fees in Monaco are unique and do not apply in the same way in other countries. They are established by the Monegasque Real Estate Chamber, of which our agency is a member, and represent 10% of the annual rent, plus 20% VAT. This fee covers a full range of services provided by the agency, including:

- The search for the property adapted to your needs
- Management of apartment visits
- Negotiation of the rental contract
- Drafting leases and administrative documentation
- Putting all parties involved in contact
- Inter-agency communication (if we work with a colleague) to optimize the rental process

Renting in Monaco can be quick, but it can also be more complex due to cultural diversity and local specificities. The different types of leases (bourgeois housing, administrative office, commercial lease, etc.) require special expertise. That's why hiring a real estate expert like Petrini Exclusive Real Estate Monaco is essential to navigating these complexities.

Monaco Rental Fees: State Registration Fees

The registration of the lease with the Monegasque authorities is a mandatory step and there are costs associated with it. These fees represent 1% of the annual amount of rent and charges. Our agency Petrini Exclusive Real Estate Monaco takes care of this formality by going directly to the registry office. This 1% must be paid annually, but it is possible to pay the registration fee for several years in advance, simplifying management for the tenant.

Rental fees in Monaco : Administrative or administrative fees

Some agencies apply an administrative or administrative fee to cover the costs of preparing and managing rental documents. At Petrini Exclusive Real Estate Monaco, we do not charge these fees, providing an additional benefit to our clients. However, it is important to check these fees with other agencies, as they can vary and reach between 500 and 1000 euros. By choosing our agency, you avoid these additional costs, as everything is included in the agency fees.

The administrative and agency fees in Monaco are structured to cover a full range of services necessary for a successful rental. Our expertise and transparency ensure a smooth and unsurprising experience for our customers.

Rental charges and related costs

In addition to the initial rental costs and administrative costs, it is essential to take into account rental charges and ancillary costs when renting an apartment in Monaco. These additional costs can influence your overall budget and should be planned in advance.

Rental charges

The rental charges are specified during your first visit, they are added to the price of the rent. For the calculation of deposits and advance rents, it is also necessary to plan to add 3 or 4 months of rental charges. They usually include a variety of costs related to the maintenance and operation of the building. These fees may include:

- Maintenance of common areas
- Collective heating
- Water (which is usually included in the charges and sometimes has to be subscribed to by the tenant)
- Security
- The elevator

These expenses are often provisioned monthly and adjusted at the end of the year according to actual expenses. For example, monthly charges of €200 could be provided. It is important to check what is included in the rental charges in your rental agreement to avoid any surprises.

Rental costs in Monaco: State of play

An inventory of fixtures is carried out when the tenant enters and leaves. The inventory of fixtures at the end of the tenancy is the responsibility of the tenant, while the inventory of fixtures at the end of the tenancy is generally the responsibility of the landlord. This document describes the precise condition of the apartment and is essential to determine any damage at the end of the rental. At Petrini Exclusive Real Estate Monaco, we usually offer this service free of charge for our properties if the owner does not want an inventory of fixtures by bailiff. If the inventory of fixtures is carried out by an external company, the cost can vary between 300 and 800 euros depending on the size of the apartment. If a bailiff is needed, the cost can range from 800 to 1000 euros.

Home insurance

Home insurance is mandatory for all tenants in Monaco. This insurance covers risks related to the home, such as fire, water damage and theft. At Petrini Exclusive Real Estate Monaco, we can help you take out insurance tailored to your needs, ensuring that you are properly protected from the start of your rental.

Electricity, internet, water

Utility fees such as electricity, internet are usually not included in the rental charges. It is important to subscribe to these services as soon as you set up. Our agency can handle these steps for you, ensuring a smooth and hassle-free transition. This allows you to get set up quickly without worrying about administrative details.

Move

Finally, moving costs must also be planned. While these costs can vary depending on the distance and volume of goods to be transported, it is advisable to budget for this expense to avoid any surprises. Our agency can also advise you on reliable and efficient moving companies in Monaco.

In summary, rental charges and ancillary costs are essential elements when renting an apartment in Monaco. By working with Petrini Exclusive Real Estate Monaco, you benefit from complete support for all these steps, ensuring you a serene and successful rental experience.

The costs when you rent an apartment in Monaco summarized

Renting an apartment in Monaco requires a thorough understanding of the various costs involved, which differ significantly from practices in other countries. For newcomers, it is crucial to be prepared for a series of expenses specific to the principality, thus ensuring a serene installation in line with local requirements.

In Monaco, it is systematic to have to plan several months' rent in advance as well as a deposit equivalent to three or four months' rent plus provisions on charges. These upfront fees are essential to secure your rental and ensure that your application as a tenant is serious.

The agency fees, set by the Monegasque Real Estate Chamber, represent 10% of the annual rent plus 20% VAT. These fees cover a full range of services, including the search for the property, the management of visits, the negotiation of the contract, the drafting of leases and the contact of the parties involved. These services are essential to navigate the specificities of the Monegasque market, which is characterised by great cultural diversity and varied legal requirements.

Rental charges and ancillary costs, such as the maintenance of common areas, collective heating and sometimes water, are also to be expected. These charges, often provisioned monthly, can affect your overall budget and require careful verification when signing the contract. The inventory of fixtures, which is mandatory on entry and exit, is the responsibility of the tenant for the entry and generally the responsibility of the landlord for the exit.

For new residents, opening a bank account in Monaco and depositing a large sum, often around 500,000 euros, is a necessary step to facilitate rental transactions. This approach, although it may seem demanding, is an essential condition for guaranteeing the security and stability of transactions in such an exclusive market.

In conclusion, although rental fees in Monaco may seem high, they are a reflection of a prestigious market where quality of life and safety are paramount. Careful preparation and a clear understanding of these costs are essential for anyone wishing to relocate to the principality. By working with an expert agency like Petrini Exclusive Real Estate Monaco, you benefit from personalized support and transparent management, ensuring a serene and successful transition in this unique setting.