Non-renewal of the lease: what implications?

Student housing insurance HEYME

The owner of a dwelling has the right not to renew the lease of his tenant when it expires. Several scenarios have been planned and the approach is framed.

What are the grounds for non-renewal of a lease? What are the rights and duties of the lessor and the lessee? What are the implications for everyone? That’s all you need to know!

Principle of lease renewal

The law provides for a tacit renewal of the lease contract automatically at the end of the term provided for if the lessor does not terminate the contract for takeover or for sale. In this case, it is not necessary to sign a new contract and it is renewed according to the same terms as those provided for in the initial lease.

On the other hand, a lease may not be renewed automatically. Stakeholders can decide to renew the lease either at the initiative of the lessor or that of the tenant. It is then a question of renewing the lease.

In this case, the new contract may include certain modifications to the clauses which constitute it (review of the rent, renovation work carried out, increased living space, etc.).

Student housing insurance HEYME

Good to know :

The duration of a lease depends on several factors:

  • if the lessor is an individual, the rental period for the accommodation is 3 years.
  • if the lessor is a legal person, the rental period is 6 years
  • if the accommodation is rented furnished, the duration is one year

Reasons for not renewing the lease

The owner of a dwelling can end the rental of the latter, whether empty or furnished, and send a notice to his tenant to recover it. However, this decision must be justified by a serious and legitimate reason: in the event of sale/repossession of the property concerned or to carry out renovation work there. And for each case, there are rules to follow.

Non-renewal for sale

The sale of real estate is one of the grounds for non-renewal of the lease. If the owner-lessor decides to sell his property, he must send a notice for sale to the tenant by respecting a specific procedure, in particular the pre-emption rights enjoyed by the tenant. The latter must be notified 6 months before the end of the lease contract.

The notice for sale must be given on the expiry date, that is to say on the anniversary date of the signature of the initial lease and must bear the mention “sale”, the sale price of the accommodation which must be equivalent or close to the market value of the property, as well as a detailed description of the property.

Attention !

Pre-emption rights only concern empty residential leases and those furnished!

In case of plurality of tenants, the lessor must send the leave for sale to everyone.

Good to know :

In the event of leave for sale, the tenant has priority over the acquisition of the property he occupies thanks to the rights of pre-emption. He has a period of 2 months to materialize the promise to purchase or refuse the offer to sell the lease. This period can be extended to 4 months if the tenant wishes to take out a mortgage.

Non-compliance with pre-emptive rights by the lessor results in the nullity of the sale and offers the purchase of the property to a third party purchaser.

There are different ways to inform the tenant of the sale decision, either by sending a registered letter with acknowledgment of receipt, or by a letter delivered by hand with receipt or by a bailiff’s document.

The use of a bailiff is not mandatory, but optional in order to facilitate the procedures and to avoid omitting a mandatory statement likely to result in the nullity of the notice and possibly the tacit renewal of the lease.

If the tenant does not receive the leave for sale during the 6 months before the end of the lease contract, the latter will be tacitly renewed and no sale can take place.

Non-renewal for recovery

The lessor may terminate the lease contract and refuse its renewal for personal occupation, i.e. take over the lease to live there or to accommodate one of his relatives, provided that the house is necessarily his main residence. .

The following persons are considered to be beneficiaries of housing after repossession:

  • Owner’s husband,
  • PACS partner on the date of leave,
  • Partner for at least one year on the date of leave,
  • One of his ascendants (parent, grandparent or great-grandparent) or that of his spouse, partner or PACS partner,
  • One of his descendants (children, grandchildren)

As for the leave for sale, the lessor must notify his tenant by a letter of leave for repossession, 6 months before the expiry date of his lease. In the absence of receipt of mail, the leave will not be valid.

Non-renewal of lease for works

At first glance, the decision not to renew the lease for carrying out the work is not obvious. Nevertheless, to avoid any dispute with the tenant, the renovation or rehabilitation work must be of a large scale and the lessor must prove a real intention for the execution of this work. It is possible to accompany the letter of leave with supporting documents, such as the building permit, the quotes from building professionals, the sketch and the plan, etc.).

Non-renewal of lease for serious and legitimate reason

It should be noted that the legislator does not define the notion of serious and legitimate reason. The reasons given by the lessor are generally related to rental obligations (unpaid or late payment of rent) or neighborhood disturbances. So the owner of the property has an interest in building up a solid file. Also, the reason for non-renewal must appear on the notification sent to the tenant.

Good to know :

As part of a furnished rental, the owner can give notice of 3 months at the end of the term under the same conditions of form as an empty rental. This leave must always be motivated by the sale/recovery of the property or by a serious and legitimate reason.

Whatever the reason for the non-renewal of the lease, the tenant may challenge the decision of the lessor (sale or repossession of the property) if he considers that the reason for the termination is fraudulent or abusive. In this case, the lessor may be ordered to compensate the tenant and pay damages or pay a criminal fine.

What about protected tenants

Some tenants are protected based on their age and income. Whether for a furnished or unfurnished rental, the owner cannot give leave as he sees fit and must imperatively respect certain conditions.

Tenants over 65

For the protection to be legal, the accommodation must be the principal residence of the tenant over 65 years of age and that his financial resources do not exceed the ceiling for approved accommodation (cf. service-public.fr).

Tenants under 65

For tenants under 65, two conditions are required: to have a dependent over 65 on the lease expiry date and that the cumulative income of all persons living under the same roof does not exceed certain income (see service-public.fr).

What are the particularities of a student lease?

Unlike other rental contract formats, students benefit from a situation adapted to their constraints and the length of the academic year.

The student lease is often furnished and must meet certain conditions and include a list of equipment to ensure a decent life for the future tenant.

The duration of the student lease is relatively short and does not exceed 9 months and the contract is not automatically renewed even if the two parties wish to keep their contractual relationship. The renewal must be subject to a new signature of the contract.

The student lease offers several advantages for both the lessor and the tenant, it is a profitable investment that should not be overlooked!

Good to know :

The student lease contract is intended for people with student status. However, the student is not obliged to rent this specific type of accommodation or to sign a rental contract of this type, because he can choose other types of accommodation intended for students (CROUS, studio, T1, T2…).

Whatever the rented lease, it is strongly recommended to take out housing insurance to protect you from possible risks related to fire, ice breakage, acts of vandalism and burglary, natural disasters (flood, storm, storm, etc.). ).

To ensure the safety and protection of your home and your property in the event of a claim, HEYME provides multi-risk home insurance (MRH) from €34 per year.

Termination of a student lease contract

The parties, namely the owner and the student, can terminate the lease agreement before the due date provided that certain conditions are met:

At the initiative of the student

If a situation requires an early departure or an internship, the student can break his lease contract at any time. Nevertheless, a lease cannot be terminated overnight, it must absolutely respect a notice of one month for the furnished rental or a mobility lease and 3 months for the empty rental.

At the initiative of the lessor

Like any type of lease contract, the owner can request the termination of a student lease contract and must justify his decision to end the contract by a reason for sale/repossession of the property or for a legitimate reason.

He must also respect the obligations in relation to the notice for sending the leave to his student tenant (6 months for empty accommodation and 3 months for furnished accommodation).

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