A1 REAL ESTATE

THE MOBILITY LEASE "Bail Mobilité"

Do you own a furnished apartment in Paris ? Choose the Mobility Lease to rent your apartment for a period of between 1 and 10 months. As a specialist in Mobility Leases in Paris, our clients are looking for temporary accommodation, we support many companies, foreign individuals, large groups and embassies. If, like them, you are interested in the mobility lease and would like to know more, contact us !

1. What is the mobility lease "Bail Mobilité" ?

Bail Mobilité” or the Mobility Lease is a type of rental contract that covers only a short period of time for tenancy. It's only good for a minimum of 1 month to a maximum of 10 months in total. And it’s designed for those who are only in France temporarily, be it for their studies or for work. 

This lease was created in accordance with Article 107 of the ELAN Law, promulgated on November 23, 2018. With this law and lease, the French government aims to reintroduce vacant rental properties back into the real estate market. But it's important to note, however, that “Bail Mobilité” is separate from vacation rentals in Paris (also known as AIRBNB-type rentals), which are aimed at tourists. 

2. What is the duration of the mobility lease "Bail Mobilité" ?


The Mobility Lease covers a minimum of 1 month to a maximum of 10 months in total. It serves as a good alternative to the standard rental leases in France which cover either 9 months (for short-term rentals) or 12 months (for long-term rentals). But unlike those standard rental leases, your Mobility Lease cannot be renewed after your initial 10 months. There is still room for modification, but that's only if your initial lease was within 1 to 9 months. You can extend it until the 10th month but not beyond that. 

In the event that the tenant requests an extended stay in the property, the landlord will then have to offer a standard long-term rental lease instead. 

  1. Who Can Benefit from The Mobility Lease?

Prospective tenants have to prove that they are:
  • In vocational training
  • In higher education
  • In an apprenticeship contract
  • In internship
  • In voluntary enlistment as part of a civic service
  • On a professional transfer or temporary assignment (temporary workers or seasonal workers)

  1. What Kind of Properties Apply to A Mobility Lease?

The right kind of property that's applicable for a Mobility Lease should have/be:
  • Decent housing 
  • Must be of a minimum surface area
  • Not harmful to the safety of the tenant 
  • Must have the necessary equipment
  • Furnished rentals should contain the following furniture:
  • Bedding with duvet or blanket
  • Shutters or curtains in the rooms
  • Hobs
  • Oven or microwave oven
  • Refrigerator
  • Freezer or freezer compartment of the refrigerator with a maximum temperature of -6°
  • A sufficient number of dishes for occupants to eat meals
  • Kitchenware
  • Table and seats
  • Storage shelves
  • Light fixtures
  • Housekeeping equipment adapted to the characteristics of the accommodation (i.e. vacuum cleaner if there is carpet, broom, and mop for tiles ...)

4. What are the advantages of a mobility lease "Bail Mobilité" for the tenant?

The mobility lease offers many advantages for professional or student tenants who do not wish to stay more than one year in their accommodation. It is also more advantageous than other types of furnished rental contract, for landlords.

1. Notice of departure
Possibility to terminate the rental contract whenever it wishes, provided that one month's notice of departure is observed.

2. End of lease
Various means are at his disposal to notify his decision to the lessor, the registered letter with acknowledgment of receipt, the bailiff's act or the hand delivery against signature.

3. Subletting
Subletting is possible, provided that the tenant obtains the written agreement of the owner.

4. Security deposit
A contract without a security deposit. A1 Real Estate offers you solutions to cover damage during a rental without asking for a security deposit.

5. Warranty
The tenant has the possibility to take advantage of the Visal guarantee, applying to the unpaid (rents and charges) of his main residence. This guarantee is limited to a rent of 1,500 euros in Paris and 1,300 euros in the rest of the France, as well as thirty-six unpaid monthly payments.

6. Rent control
In Paris, the rent of a dwelling whose lease has been signed or renewed since July 1, 2019 is governed by reference rents.

These amounts vary according to the type of rental (empty or furnished), the number of rooms and the time of construction of the property.

> Some furnished dwellings are not affected by rent control because they are subject to other rules. These are furnished housing under Civil Code lease (second home or company housing), housing subject to the law of 1948, or approved by Anah (excluding intermediate rent agreements), social housing (HLM), furnished tourism and sublets are excluded. 

Note that the tenant's main residence is subject to rent control. This is not the case for a second home. 

5. What are the advantages of a mobility lease "Bail Mobilité" for the owner ?

The mobility lease offers many advantages for owners who wish to keep flexibility on their furnished accommodation. This allows the owner to use his furnished apartment between two rentals and to recover his home more easily at the end of the rental, which remains more advantageous than other types of rental contract, for landlords.

1. Flexibility
The owner keeps control of his home and can recover it more easily. More flexible than a conventional lease.

2. Registration
No need to register the rental with your town hall

3. Warranty
The owner can benefit from the Visale guarantee (free coverage of unpaid rents and rental damage of the tenant).

4. Rent control
The landlord is free to set the amount of the rent. (excluding tense areas)

> A flat rate applying to the charges must be paid to the landlord when paying the rent. The lump sum is defined, beforehand, in the mobility lease, in the same way as the amount of the rent itself. Expenses include condominium work, home insurance, housing tax and property taxes

6. What are the tenant's obligations during a mobility lease "Bail Mobilité" ?

  • The tenant must pay the rental charges simultaneously with the rent. The price of these charges and the frequency of payment (i.e. each month, every 3 months, etc.) should be included in the lease.

  • The tenant can ask the landlord to send a rent receipt. This document indicates that all the sums due have been paid. 

  • The tenant can terminate the Mobility Lease at any time, but he must notify the owner (or the real estate agency managing the property) in advance. To do this, they have to give a formal notice and respect a period of at least one month.

7. What are the obligations of the landlord during a mobility lease "Bail Mobilité" ?

  • If the property is sold to another owner during the Mobility Lease, the landlord must inform the tenant. The new owner is then obliged to transmit their name or denomination, as well as the address of their residence or registered office.

  • The owner is forbidden to ask for a security deposit but is allowed to ask for a deposit. However, there are solutions to guarantee the damage created by the tenant without asking for a deposit, through organizations or insurance companies that can take care of any rental damage.

8. Good to know

Mobility lease "Bail mobilité" and rent control
 
Rent control
In Paris, the rent of a dwelling whose lease has been signed or renewed since July 1, 2019 is governed by reference rents
 
These amounts vary according to the type of rental (empty or furnished), the number of rooms and the time of construction of the property.
 
> Some furnished dwellings are not affected by rent control because they are subject to other rules. These are furnished housing under Civil Code lease (second home or company housing), housing subject to the law of 1948, or approved by Anah (excluding intermediate rent agreements), social housing (HLM), furnished tourism and sublets are excluded.
 
Note that the tenant's main residence is subject to rent control. However, a tenant's second home, a pied-à-terre, or a temporary dwelling, is not subject to rent control. As a reminder, the tenant must live in his home 8 months a year to qualify his dwelling as a principal residence.  
 

Who pays the property tax? 

It is the tenant occupying the dwelling on 1 January who pays the housing tax. If the tenant fails to comply with this obligation, the lessor is liable.

What happens after the 10 months? 

The mobility lease cannot be renewed. However, if the tenant and the lessor reach an agreement, an ordinary furnished lease of 1 year can be established.

How is the amount of rental charges determined? 

The tenant must pay the rental charges in the form of a lump sum paid simultaneously with the rent. The amount of the lump sum and the frequency of payment are recorded in the lease. No adjustment of charges can be put in place, unlike a conventional rental. 

What information must appear on the mobility lease? 

The "mobility lease" "Bail mobilité" rental contract presents information similar to other rental contracts: 
  • Identity of the lessor and his domicile
  • Identity of the tenant
  • Characteristics of the property
  • Effective date of lease
  • Duration of the lease agreement
  • Living area
  • The amount of rent and the terms of payment
  • Designation of spaces for private use and those subject to common use
  • Mention "mobility lease "Bail mobilité"
  • Mention "the rental contract is a mobility lease governed by title 1 ter of law 89-462 of the law of 6 July 1989 to improve rental relations"
  • The reason why the contract is a mobility lease
  • The title "the owner is prohibited from asking for a security deposit"

How to declare your rent in mobility lease "Bail mobilité" in furnished rental? 

The rental rents received are taxable under the BIC regime and it is advisable to use the status of Non-Professional Furnished Lessor (LMNP) to optimize taxation. 

> Guide: Furnished Rentals 

How to terminate a mobility lease? 

The tenant is the only one who can terminate the lease at any time. He must still respect a notice of 1 month. The request for termination must be made by registered letter with acknowledgment of receipt, it must contain the desired departure date.

Can we sublet or co-rent on mobility leases? 
Colocation is possible with the mobility lease even if in the basic contract, there is no solidarity clause. If one of the tenants does not pay his share of the rent, it will not be possible to turn against the other parties. 

As with other conventional rental agreements, subletting is allowed from the moment the owner authorizes it. The tenant must obtain his written agreement.

Is it compulsory to take out home insurance?  

As with any rental, the tenant is obliged to take out insurance that includes at least the guarantee of civil liability, water damage and fire, explosives (also called rental risks).

As a landlord, PNO insurance is highly recommended (although it is only mandatory for condominiums). This insurance will protect the accommodation in the absence of insurance vis-à-vis the tenant or during rental holiday periods. 

Is it possible to rent your second home on a mobility lease? 

Yes, it is quite possible to rent your second home under mobility lease. There is no limit of use except not to rent more than 10 months to the same tenant.

The rental of a second home with mobility lease, in Paris, does not require a prior change of use; since the mobility lease remains a residential lease. 

Is it required to register my accommodation with the town hall? 

No, if the accommodation is rented on a mobility lease. However, if the accommodation is rented both under a mobility lease and for short periods (outside the mobility lease), it will be mandatory to register the accommodation (only if the city has implemented this procedure).

What guarantee in Mobility Lease?

The mobility lease does not allow the security deposit, but landlords can ask their tenant to provide them with the VISALE guarantee. The Visale guarantee has a duration of 10 months (maximum).

How to extend a mobility lease?
The mobility lease is concluded for a maximum period of 10 months. This lease is non-renewable and non-renewable. The duration of the lease can be modified 1 time per amendment, but the total duration cannot exceed 10 months.

How to terminate a mobility lease?
The tenant can terminate the mobility lease at any time, with one month's notice, but he must notify the owner of the accommodation or the real estate agency in advance. For this, the owner must give him leave.

> When should I give my tenant leave?
> What reason to give my tenant leave? 

How to justify a mobility lease?
The tenant must justify a mobility lease by a document (apprenticeship contract, internship agreement, training agreement,...). No security deposit can be requested and a flatshare is possible but without solidarity clause between tenants.

To conclude, what are the differences with conventional rental contracts? 
  • Shorter duration
  • No deposit can be requested 
  • Colocation is possible but without solidarity clause between tenants
  • Proof is required from the tenant to prove the mobility lease: internship agreement, training agreement, apprenticeship contract, etc. 
  • To guarantee rent payments, the tenant can benefit from the Visale guarantee

9. Why is the mobility lease "Bail Mobilité" important for A1 Real Estate?

As a real estate agency, A1 Real Estate Paris understands the need for using vacant properties in Paris and the rest of France. 

But before 2018, the law prohibited property owners from renting out their homes unless it was their primary residence. Only when the ELAN Law was enacted, which introduced the Mobility Lease, did it become legal for owners in Paris to rent out their properties for a minimum of one month. 

However, they can only rent out to those who are officially staying in Paris for a short period of time. These include graduate students, business travelers, diplomats, and the like. 

The law clearly states that “Bail Mobilité” cannot be used for tourism purposes. Those who are simply visiting Paris will have to go for vacation rentals (i.e. Airbnb). 

10. Why choose A1 Real Estate?

  • When it comes to the deposit and security deposit, A1 Real Estate has a solution for that. We work hand in hand with a partner who covers damages up to approximately 1 million Euros.
  • The majority of our clients pay the full rent in advance.
  • As an owner, you can use any property between two (2) rentals.
  • A1 Real Estate takes care of everything, down to the smallest detail, and accompanies you in all your projects.

To know more about the Civil Code lease, click just below ⬇️

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If you are interested in the Mobility Lease, we can provide you with a guarantee against damage via our partners,  contact us if you want to know more !

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