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What is the rate increase determined by the R殓ie du logement this year ?
There is no fixed rate increase applied by the R殓ie du logement. Each case is treated specifically. The R殓ie takes into account, in calculating the rent variation, the income of the building and the municipal and school taxes, the insurance bills, the energy costs, maintenance and service costs. Also it sees to apply a return on capital expenditures, if there were such expenditures, and indexes the net income of the building.
However the R殓ie du logement is able to estimate averages. So for the rents to be fixed for the period starting after April 1st 2004 but before April 2, 2005, it can be expected, if the method to fix the rent of the R殓ie is applied, that the rent variation will be of :
1.5 % for electricity heated dwellings;
3.1 % for gas heated dwellings;
3.0 % for oil heated dwellings;
1.4 % for non heated dwellings.
These average rent variations are valid if there is a freeze on municipal and school taxes for the building and also if there were no capital expenditures done in the building.
In order to calculate precisely the rent variation for a dwelling, the following document must be used :
Calculation 2004 - How to agree on a rent adjustment.
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