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Change
to the law in relation to furnished lets
The
letting of furnished property does not come within the law of 6th July
1989. This enables the parties to avoid certain of the more restrictive
clauses in relation to the aforementioned law, particularly concerning
minimum rental periods and rent capping.
Until
the law known as the Loi Borloo of 18th January 2005, the parties
were in most cases able freely to establish the terms and conditions of
the rental agreement and restrictions were only imposed if the landlord
rented out more than four lodgings.
Under
this very recent modification of the law, the obligations previously
applicable only to landlords who rented out more than four lodgings have
been extended to cover those rental agreements relating to furnished
accommodation where the property is to be the tenant's principal residence
(thus it will not apply to seasonal holiday lets).
The
tenant must now benefit from a written agreement for a year's rental
period. The lease will tacitly renew for the same period and under the
same conditions. However, upon renewal the landlord can propose
modifications to the contract provided that the tenant is warned three
months before the end. If the landlord does not wish to renew the
contract, the refusal must be justified and the only acceptable reasons
are to take the property back or sell it, or for a legitimate and serious
motive (e.g. failure to pay rent). The tenant can, however, give notice at
any time but must respect a notice period of one month.
These
new provisions clearly represent a significant alteration in the law in
this particular area.
07/03/2005
- Legal update
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