Rent Increase Formula:
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The IRL (Indice de Référence des Loyers) is the official reference index used in France to calculate annual rent increases. In Montreal, France, landlords can increase rent based on this index, which reflects inflation and construction costs.
The calculation uses the formula:
Where:
Example: For an old rent of €800 with IRL of 2.5%, the new rent would be €800 × 1.025 = €820.
Details: The rent increase is typically applied annually on the lease anniversary date. Landlords must provide proper notice (usually 3 months) and cannot exceed the IRL percentage unless property improvements justify a higher increase.
Tips: Enter your current rent in EUR and the applicable IRL percentage. The calculator will show the new rent amount after the increase.
Q1: How often can rent be increased?
A: Typically once per year, on the lease anniversary date.
Q2: Is there a maximum increase percentage?
A: Normally limited to the IRL percentage, except for justified cases of property improvements.
Q3: When is the IRL index published?
A: The IRL is published annually by the French government, usually in the first quarter.
Q4: Can tenants refuse a rent increase?
A: If the increase follows the IRL and proper procedures, refusal may lead to lease termination.
Q5: Are there exceptions to the IRL rule?
A: New constructions, fully furnished rentals, and certain luxury properties may have different rules.