Thursday, March 26, 2015

Rental fee: 42% of real estate agents do not … – Les Echos

According to a survey of the association CLCV consumers, more than 4 out of ten agencies charge a fee beyond the limit under ALUR law.

Adopted there one year, the ALUR law she helped to curb abusive practices on the market for rental housing? Not really, judging from a survey conducted by the association of CLCV consumers (Consumer, Housing and Living Environment). It reviewed 938 real estate agencies in 40 counties (71% independent firms).

Only 76% of them actually display their showcase in fees as require certain provisions of the law ALUR took effect on 15 September 2014. A rate similar to that recorded in the previous survey CLCV in 2013 (77%) before the adoption of the law. Agencies dependent on large groups more respect this tariff transparency, 86%, while the independent firms are only 72% to showcase display their fees.

On the other hand, 42% of branches in France charge a rental fee – normally called by some “agency fee” – beyond the legal limit. A decree of ALUR law published in the Official Gazette on 1 st August indeed imposes a limit of 12 euros per square meter of living space in a very tense area 10 Euro area and tense 8 euros outside tense and very tense areas. The inventory, meanwhile, can be charged to the tenant 3 euros per square meter of living space, regardless of the geographical location of housing.



intentional breach

“If we noted some awkwardness in some professional, others continue willfully or ignorantly violate the provisions of the law ALUR” notes CLCV. The best students are in the Eastern and Western Basin Parisien. The non-compliance rate is however 63% in the South West and 51% in the Southeast.

The consumer association shows, in general, very skeptical about the effectiveness of the fee cap. The purpose of these measures was to prevent the abuses which bear the tenant the full agency fee. Indeed, the lessor and the lessee are supposed to equally pay their way. But, very often, in fact, found the CLCV, the tenant has paid only the amount without so far can check it.

The Limit fees introduced by ALUR law is “really effective if the maximums are carefully chosen considering the local market situation,” says CLCV. If it makes a real gain in purchasing power in very tense areas – a decline of 53% of agency fees in the Paris region about – and remains “financially attractive” in tense areas like the city of Nice, However the system shows its limits in other areas.

Consequences against out-productive tense areas

The Limit fees may even out very strained and tense areas, to have “consequences against-productive,” Judge CLCV. Thus, Agen, Cahors, Limoges, Angoulême and Metz, where average monthly rents are very close or even below the legal limit of 8 euros per square meter, real estate agencies may be tempted to increase their fees while respecting the law .

When the fees are less than one month’s rent, the gain for the tenant is positive as Paris, says the consumer association. Considering an average rent of 24.3 euros per square meter for a two-room – which equates to a cap of 291.6 euros – the tenant would save 194.4 euros on agency fees. However, in Nice, Bordeaux, Cahors or Metz, the gain is negative over 100 euros.

ALSO What changes with the law ALUR

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