France: The mobility lease of the Elan law, tailor-made for your expatriates or long missions.
The mobility lease of the Elan law: all you need to know
Created by the ELAN law (Evolution du Logement, de l’Aménagement et du Numérique) and implemented from November 2018, the mobility lease promotes professional mobility. More flexible than the traditional lease, it is more suitable for those who need accommodation during a contract or temporary assignment.
What is a mobility lease?
The mobility lease is a short-term rental contract that only applies to furnished accommodation. More flexible than a traditional lease, it allows easier access to housing for people in a situation of professional mobility, but only under certain conditions.
Who can benefit from it?
The mobility lease is one of the best solutions for people who need to find temporary accommodation, for short or medium-term rental and be assured of being able to move quickly and without difficulty.
More precisely, the mobility lease concerns students who must find a furnished apartment during an internship or for their studies, people in a situation of professional mobility, whether for a temporary assignment, for the duration of a training course, for an apprenticeship contract, for seasonal workers or as part of a commitment in civic service.
It can also be an excellent way to benefit from a temporary furnished apartment for expatriates upon their arrival in the country, or as part of a transfer, allowing them to discover the city and know in which district they would like to settle later. It is also interesting for impatriates, upon their return from expatriation, while waiting to recover or acquire their own housing. Moreover, to help you in the search for your accommodation and to benefit from a temporary apartment upon your return from expatriation or for a transfer, you can be helped in your steps by a relocation agency.
Note that the tenant must justify his right to rent a furnished apartment via the mobility lease by providing a copy of his contract or internship agreement for example.
What is the duration of the mobility lease?
Unlike a traditional contract for a furnished rental, the duration of the mobility lease must be between 1 month minimum and 10 maximum. If it is not renewable, it may however be reviewed during the rental period, for example to extend it, provided that the total duration of the rental does not exceed 10 months. The contract can only be amended once. At the end of the lease, the landlord will be able to either recover his property or extend his tenant’s contract, but in this case they will switch to a traditional lease.
Except in the event of a breach of his obligations, the lessor may not terminate the current lease. The tenant, on the other hand, may leave the accommodation at any time by sending a registered letter with notice of receipt, by bailiff’s deed or by hand delivery against signature or receipt. He must then respect a notice period of one month from the date of receipt of the letter by the landlord.
What are the conditions for renting your accommodation with a mobility lease contract?
The landlord must ensure that his accommodation is decent and guarantee the tenant a minimum of equipment such as bedding with blanket or duvet, a refrigerator, sufficient crockery and kitchen utensils, a table, etc. Consult the complete list.
What are the terms and conditions and guarantees for tenants and landlords?
To rent his property via the mobility lease, the lessor does not need any authorisation or an administrative declaration. The tenant does not have to pay a security deposit. However, the landlord can, thanks to the Visale guarantee, ask for a guarantee, i.e. guarantors, who undertake to pay charges and rents if unpaid by the tenant or to be covered in case of any damage to the property.
What are the rules for rent and rental charges?
The amount of the rent is fixed by the landlord – unless it is located in a tense area and in this case it is subject to the rent control rule – and cannot be modified during the entire term of the lease. As for the rental charges, they are paid by the tenant in the form of a fixed price established by the owner who also sets the payment periods himself.
Is it possible to share a room?
For students in particular, roommates are often the best way to find accommodation more easily and at the same time reduce the cost of rent. With the mobility lease, co-location is possible, but the landlord will not be able to apply the solidarity clauses between the co-tenants or their guarantors.
What about taxation?
On the tax side, as for other ordinary furnished rentals, rents received from rentals with a mobility lease are taxed in the industrial and commercial profits (BIC) category.