Good news for the liquidity of the Parisian rental market; the cost of agency fees paid by tenants for new lets has dropped markedly. For a one bed apartment of 40 m², the tenant is now not allowed to pay more than €600 of agency fees compared to €1,000 euros previously.
For over two years, rental agencies in Paris have been obliged to cap the rental fees received upon the closing of a new lease.
Whilst this is obviously bad news for some in the industry, the reform – which follows the Alur law (Act for access to housing and renovated town planning) – aims to reduce the cost of entry into the housing for those using a real estate agency.
It is therefore hoped that this will increase liquidity in the market, therefore helping both the tenants and prospective landlords who have been stifled somewhat by rental rate caps themselves.