Rent index 2022: operation and calculation of IRL
The rent reference index (IRL)
Landlords and tenants must know the IRL.In many cases, this index calculated by INSEE decides on the evolution of rents.To determine it, INSEE uses the average inflation noted over the last twelve months (excluding tobacco and rents).
Annual rent increase
A lessor must be based on the IRL when he wishes to increase the rent of a rental each year during the lease.To practice this annual revision, he must register an indexing clause in the rental contract.Otherwise, the rent paid by the tenant remains constant until the lease or his breakdown (departure from the tenant, expulsion, etc.).
It is not enough to register an annual revision clause in the lease to revalue the rent according to the IRL.Each year, the owner must report his intention to the tenant, in writing preferably.It has one year to act from the annual revision date.Otherwise, the rent does not move.Its increase is effective from the landlord's request, without the possibility of catching up in the event of late revaluation six or nine months later for example.
Revaluation of rent to the relocation or renewal of lease
In 28 agglomerations of more than 50.000 inhabitants and 1.151 municipalities (see the list here), the IRL also serves as a reference to increase rents when renewing a lease or the arrival of a new tenant (relocation).The law thus limits the evolution of rental prices in tense areas with this rent for the management of rents.
Namely: the supervision of rents by the IRL to the relocation and renewal of lease, sometimes called the caps of rents, is different from that of new applied specifically since July 1, 2019 in Paris and since March 1, 2020 in Lille, within the framework of the ELAN law.This prevents landlord owners from fixing too high rents.In the capital, Parisian donors must thus set rent taking into account the indexing on the IRL to the renewal of the lease contract and the relocation.
Calculation of the rent index 2022
The method of calculating the rent increase is as follows: old rent x (IRL of the quarter/IRL in the same quarter the previous year) = new rent.
Either, for a rent of 1.000 euros reassessed in March 2022: 1.000 x (132.62*/130.52*) = 1018.09 euros.
* IRL of the fourth quarter 2021 ** IRL of the fourth quarter 2020
Calculate the percentage of increase: the IRL also makes it possible to calculate the percentage of increased rent, according to the following formula: (IRL of the quarter - IRL of the same quarter the previous year) / IRL of the same quarterprevious year x 100.By taking up the example above, we obtain: (132.62-130.52) / 130.52 x 100 = 1.61% increase.
IRL annual revision calendar
Posted in the Official Journal, the index is established each quarter by INSEE according to this calendar:
History of revision of the index since 2012
Le propriétaire doit s’appuyer sur l’indice de référence des loyers en vigueur à la date retenue dans le contrat de bail pour l’indexation annuelle du loyer (le 1er août, par exemple).If no deadline is specified, it must take into account the IRL applicable to the anniversary of the contract.
The following table traces the evolution of the IRL since the first quarter of 2012.
| Valeurs de l'indice de référence des loyers | ||
|---|---|---|
| Source : Insee | ||
| Période | Indice | Évolution annuelle |
| T1 2012 | 122,37 | +2,24% |
| T2 2012 | 122,96 | +2,20% |
| T3 2012 | 123,55 | +2,15% |
| T4 2012 | 123,97 | +1,88% |
| T1 2013 | 124,25 | +1,54% |
| T2 2013 | 124,44 | +1,20% |
| T3 2013 | 124,66 | +0,90% |
| T4 2013 | 124,83 | +0,69% |
| T1 2014 | 125 | +0,06% |
| T2 2014 | 125,15 | +0,57% |
| T3 2014 | 125,24 | +0,47% |
| T4 2014 | 125,29 | +0,37% |
| T1 2015 | 125,19 | +0,15% |
| T2 2015 | 125,25 | +0,08% |
| T3 2015 | 125,26 | +0,02% |
| T4 2015 | 125,28 | +0,01% |
| T1 2016 | 125,26 | +0,06% |
| T2 2016 | 125,25 | +0% |
| T3 2016 | 125,33 | +0,06% |
| T4 2016 | 125,50 | +0,18% |
| T1 2017 | 125,90 | +0,51% |
| T2 2017 | 126,19 | +0,75% |
| T3 2017 | 126,46 | +0,90% |
| T4 2017 | 126,82 | +1,05% |
| T1 2018 | 127,22 | +1,05% |
| T2 2018 | 127,77 | +1,25% |
| T3 2018 | 128,45 | +1,57% |
| T4 2018 | 129,03 | +1,74% |
| T1 2019 | 129,38 | +1,70% |
| T2 2019 | 129,72 | +1,53% |
| T3 2019 | 129,99 | +1,20% |
| T4 2019 | 130,26 | +0,95% |
| T1 2020 | 130,57 | +0,92% |
| T2 2020 | 130,57 | +0,66% |
| T3 2020 | 130,59 | +0,46% |
| T4 2020 | 130,52 | +0,20% |
| T1 2021 | 130,69 | +0,09% |
| T2 2021 | 131,12 | +0,42% |
| T3 2021 | 131,6> | +0,83% |
| T4 2021 | 132,62 | +1,61% |
| T1 2022 | À paraître | À paraître |
Online simulation of the rent increase
To find the increase in rent, a tenant can use the simulator available on the website of the National Consumer Institute (INC).To use it, it is necessary to specify the date of signature of the lease, the IRL mentioned in the lease as well as the amount of rent excluding charges.
Exceptions to the IRL
Work during the lease
An owner can free himself from the IRL to raise the rent during the lease after work to improve accommodation.It can be private work, affecting only the tenant's habitat, or construction sites affecting the common areas of the condominium, such as the installation of an elevator for example.
The law strictly frames this possibility.The amount of the new rent must be validated by the tenant beforehand.If a clause of the rental contract provides for the work and the increase in rent, the signing of the lease is worth agreement.Otherwise, the increase must be an endorsement to the contract which also requires the signature of the occupant.
Work between two tenants
Donors subject to the supervision of rents for relocation also have the ability to get rid of it when they carry out work before the arrival of the new tenant.More specifically, the work must be carried out less than six months before entering the premises and their amount must be equal to or greater than the last annual rent (last twelve months).
In this situation, an owner can increase the annual rent up to 15% of the real cost of the work all taxes included.
Increased rent undervalued the lease renewal
When the rent is undervalued compared to the market, the lessor can offer an increase in rent greater than the IRL.To do this, he must send a registered letter to his tenant (*) at least six months before the maturity of the lease.The notification must resume in its entirety article 17-2-II of the law of July 6, 1989 on rental relationships, under penalty of nullity.
The owner's request must be justified using rent references practiced in the vicinity in similar accommodation, to demonstrate the undervaluation.Six references must be produced in agglomerations of more than a million inhabitants (three everywhere else).
Once the lease renewal has been acted, the increase in rent is progressive over time.If it represents less than 10% of the previous rent, it spreads until the expiration of the new relocation contract.
Example: the rent increases by 9% and the short lease three years.The owner can therefore raise the rent of 3% each year.
Beyond 10%, revaluation is distributed over six years, regardless of the length of the lease.
Namely: the owner who requests such an increase in rent has the right to give leave to the tenant before the renewal of the lease.
(*) With acknowledgment of receipt or awarded by an act of bailiff
Increase in undervalued rent in Paris
In Paris, the rules are slightly different for a lessor who wishes to increase his undervalued rent.It must be under the minor reference rent determined for the supervision of rents, or 30% or further below the median reference rent.
The lessor can then offer a new rent less than or equal to the minor reference rent.He must respect the same conditions as mentioned above, with one difference: his mail must resume the terms of article 17-2-I of the law of July 6, 1989.
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