A guide to Monaco Law 1235
When renting an apartment or investing in a rental property in Monaco, it is essential to note that Monaco’s housing stock is divided into three sectors: the free sector, the state-owned sector, and the regulated sector.
The sector your property falls under will govern how and who you can rent the property and may also impact the sales process, with various laws governing each sector.
One such law is Monaco Law 1235.
What is Law 1235 Monaco?
Law 1235 Monaco applies to Monaco’s regulated sector. The regulated sector of Monaco’s housing stock typically includes older properties, those built before 1947. The law is designed to ensure access to affordable housing for Monegasques and qualified residents by placing restrictions on lease terms as well as who can rent certain properties. There are also additional regulations that must be followed regarding the sale of properties governed by Law 1235 Monaco.
Who does Monaco Law 1235 apply to?
Monaco Law 1235 applies to all residential properties built before 1 September 1947, with the exception of those covered by Monaco law 887, those newly assigned to residential use since June 25, 1970, and special provisions.
Monaco Law 1235: Rentals
If you purchase a Monaco apartment governed by Monaco Law 1235, then should you choose to rent it out, you must adhere to certain restrictions.
Properties governed by Monaco Law 1235 can only be rented to the following individuals:
– Monegasque nationals
– Residents with proof of at least 10 years of residence in the principality
– A widow or widower of a Monegasque if not re-married
– A parent who is divorced from a Monegasque, and is responsible for the maintenance and education of a child or children from that marriage, or for at least 10 years has had the responsibility for a Monegasque child and has at least 10 years of residence in the principality.
– Individuals born in Monaco and who have lived in the principality since birth
– Individuals who have been domiciled in the principality for more than 40 years
If you own a Monaco apartment governed by Law 1235 and wish to rent it, you must report the property to the Housing Department. They will publish the property in the Official Journal and will manage applications, forwarding potential tenants to the owner according to the above priority criteria.
If you are searching for Monaco real estate for rent, including apartments governed by Law 1235, our team can help.
What are the lease restrictions of Monaco Law 1235 properties?
Properties that fall under Monaco Law 1235 must follow specific rules when renting the property. In addition to only the individuals named above being able to rent the property, the lease must follow certain regulations, including:
– Be for a minimum of six years in duration. However, the tenant has the right to terminate the lease at any time with three months notice. The owner also has the right to terminate the lease, but only if the owner intends to occupy the property or select members of his family intend to occupy the property.
– The landlord cannot determine the rental amount as it is not governed by the free market. Additionally, any rental increases are strictly regulated.
– Adhere to strict regulations concerning the termination of the lease. Monaco Law 1235 is designed to protect tenants and provide long-term stability by restricting when and the reasons why the landlord can terminate the lease.
Monaco Law 1235: Sales
When purchasing a Monaco apartment governed by Law 1235, it is important to understand the restrictions surrounding leasing the property. Of course, if you intend not to lease the property or use it as your primary residence or a holiday home, then Law 1235 will not impact you.
Before purchasing a property governed by Law 1235, the Monegasque State must approve the sale, and the State has the right to pre-emption. This means the Monegasque State can instead choose to purchase the property. There are strict timelines that the State must respond to an intent to purchase an apartment that falls under Law 1235. An experienced realtor, such as the team at Ageprim, can help you navigate this and ensure the correct paperwork is submitted for approval.
Most properties in Monaco are not governed by Law 1235, as the law only applies to older residential developments and period buildings. For those who want to make a Monaco investment and are not concerned with renting the property, a Monaco apartment governed by Law 1235 can be a savvy investment as there is often more negotiation on the sales price, enabling investors to benefit from a competitively priced property.
How can Ageprim help?
Ageprim is a leading Monaco real estate agency. Our team is trusted for its experience, honesty, transparency, and wide network of industry contacts. We boast in-depth knowledge of managing both sales and rentals of Monaco properties governed by Law 1235. If you are searching for Monaco real estate for sale or rent in the Principality of Monaco, contact our team today. We will be delighted to assist you.