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What index to use for the revision of the rent of a residential lease?
Residential rent review
It is customary to include, in a lease, a clause by which the rent is increased each year.
Namely : generally, the clause providing for the indexation of the rent applies automatically, without the lessor having to ask the tenant to increase the rent.
When the rented property is the tenant's main residence, the law requires the use of the Rent Reference Index (IRL), published by INSEE. This index applies to the most frequent leases:
• the unfurnished residential lease of the tenant's main residence (Sheet 20-1: Unfurnished rental),
• the lease of furnished dwelling, of the main residence of the tenant (Sheet 20-2: The furnished rental).
The rent increase occurs each year, on the agreed date, or on the anniversary date of the lease.
The annual rent increase cannot exceed the change in the Rent Reference Index over one year.
The index to take into account is:
• either the one mentioned in the lease,
• or, failing that, the last clue published when the lease contract was signed.
When the rented property is not the tenant's main residence, it is possible to freely choose the index allowing the indexation of the rent. This can be the IRL but also the Construction Cost Index (CCI), also published by INSEE.
It is necessary to mention, in the lease, what is the benchmark for the calculation of indexation.
Namely : the chosen index must have a link with the contract. These two indices, ICC or IRL, are valid for a residential lease that is not the tenant's main residence.
Namely : generally, the clause providing for the indexation of the rent applies automatically, without the lessor having to ask the tenant to increase the rent.
When the rented property is the tenant's main residence, the law requires the use of the Rent Reference Index (IRL), published by INSEE. This index applies to the most frequent leases:
• the unfurnished residential lease of the tenant's main residence (Sheet 20-1: Unfurnished rental),
• the lease of furnished dwelling, of the main residence of the tenant (Sheet 20-2: The furnished rental).
The rent increase occurs each year, on the agreed date, or on the anniversary date of the lease.
The annual rent increase cannot exceed the change in the Rent Reference Index over one year.
The index to take into account is:
• either the one mentioned in the lease,
• or, failing that, the last clue published when the lease contract was signed.
When the rented property is not the tenant's main residence, it is possible to freely choose the index allowing the indexation of the rent. This can be the IRL but also the Construction Cost Index (CCI), also published by INSEE.
It is necessary to mention, in the lease, what is the benchmark for the calculation of indexation.
Namely : the chosen index must have a link with the contract. These two indices, ICC or IRL, are valid for a residential lease that is not the tenant's main residence.
Good to know
The revision of the rent by the IRL does not concern housing subject to the law of 48. In this case, the rent can be increased each year on July 1, according to a maximum amount defined according to the category of the dwelling.
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