Monaco’s rental sector can be a complex market to navigate. Not only is the rental market fast-moving, but it is also multi-layered, with various laws regulating the terms of a rental, including who property can be rented to. Many of the laws are designed to ensure citizens of Monaco, including Monegasques and their families, can source rental property in an in-demand market. One such law is Monaco Law 887.
Before embarking on a Monaco property rental search, it’s vital that you have an understanding of the laws governing the regulated housing sector of Monaco to ensure you can find the property that is right for you.
If you are searching for apartments for rent in Monaco, working with a highly experienced real estate agent, such as the team at La Costa Properties Monaco, can help guide you through the complexities of the rental market.
What is Law 887 Monaco?
Monaco Law 887 is a law that governs the regulated housing sector of Monaco only. It is designed to protect housing stock and prioritise the renting of select properties to Monegasques and Monaco citizens who have resided in the Principality for an extended period of time. It only applies to older properties—those built before September 1947.
Who can rent a property governed by Monaco Law 887?
Law 887 Monaco applies to:
- Individuals who have been domiciled in Monaco for over five years and have worked in the Principality for more than six months
- An individual who has been working in Monaco for more than five years
- Immediate family members of the owner
Why was Monaco Law 887 implemented?
Monaco Law 887 was implemented to ensure adequate housing stock for Monegasques and long-term citizens of the principality. Landlords of a property governed by Monaco law 887 must follow strict rental terms, helping to provide tenants with long-term stability while arming them with enhanced protections than rental contracts that are not governed by Monaco law 887.
Who does Monaco Law 887 benefit?
Monaco Law 887 benefits Monegasques and long-term citizens and workers in the principality.
What property is subject to Monaco Law 887?
Only property built before September 1947 is governed by Law 887. This means that it is Monaco’s older stock of buildings, including period properties and those built in the Belle Epoque era. These buildings often boast larger rooms, high ceilings, and stunning architectural details.
Is Monaco Law 887 a good thing?
Yes, Monaco Law 887 is generally considered a good thing. Due to limited land mass and high demand, Monaco rental prices are extremely high and competition is fierce. Monaco Law 887 is designed to protect Monegasques and long-term citizens by helping to ensure they can find a rental property and enjoy long-term security.
Can I rent an apartment under Law 887?
Yes, if you are a Monegasque or a long-term citizen or worker in Monaco, then you will be eligible to rent an apartment that is governed by Law 887. Working with an experienced real estate agent, such as the experts at La Costa Properties Monaco, will help identify suitable rental apartments for you to view.
Could Law 887 be an example to follow from other countries in the world?
Monaco Law 887 is a good example of a country taking decisive action to protect its citizens from a highly competitive rental marketplace by giving citizens priority and ensuring enhanced protection. Several countries with a robust rental market have some form of rental control to help protect renters, and the regulations will vary from country to country. Countries with rental controls include Germany, some US states such as New York, and France. However, there are a vast number of countries that do not have any form of rental control, meaning tenants are at the whim of landlords and often have a high degree of uncertainty.
Who sets the rent under Monaco Law 887?
The landlord sets the rental amount; however, properties governed by Monaco Law 887 can be more competitively priced due to the smaller pool of prospective tenants. Furthermore, properties that are governed by Monaco Law 887 are often in older buildings and lack the amenities of more modern buildings, such as swimming pools, gyms, concierge services, and parking.
Who chooses the tenant under Monaco Law 887?
Landlords renting a property under Monaco Law 887 will still be able to have the final say as to who they rent the property to; however, their pool of tenants will be more limited, as Monaco Law 887 properties can only be rented to Monegasques or individuals who have resided in or worked in the principality for over five years. Owners must make a declaration under Law 887 and advise the Monaco service board when the property is vacant and when it is occupied.
What are the terms of the lease under Monaco Law 887?
Landlords renting a property under Monaco Law 887 must adhere to strict terms in the lease.
- The tenancy agreement must be for a minimum of six years
- The tenant has the right to exit the lease agreement after a year
- The landlord can only rent the property to eligible tenants
Buying a property governed by Monaco Law 887
Anyone can buy a property governed by Monaco Law 887, as the law only governs who the property can be rented to. A benefit of buying a property governed by Monaco law 887 is that they are often competitively priced due to the rental restrictions, making it a financially savvy move, especially for individuals who have no intentions of renting the property. A further benefit is as the law only applies to properties built before September 1947, many boast wonderful architectural features and voluminous proportions.
An important note if you wish to buy a property governed by Monaco Law 887 is that the Principality has the right of pre-emption. Your real estate agent will provide advice on filing the correct paperwork informing the State of your intention to purchase the property, and they must respond within four weeks.
What are some of the other laws of Monaco’s regulated housing sector?
There are several laws governing Monaco’s regulated housing sector. In addition to Monaco Law 887, another includes law 1235/1291, which ensures Monegasques enjoy access to affordable housing. Unlike Monaco law 887, under law 1235/1291 the landlord does not have the right to determine the rental amount.
How can La Costa Properties Monaco help?
La Costa Properties Monaco is a family run Monaco real estate agency with more than 40 years of expertise. Our wealth of experience and market intelligence means that we have access to the finest selection of rental properties, including properties governed by Monaco Law 887. If you need help finding a property to rent in Monaco, contact our team. We will be delighted to assist you.