A guide to renting apartments under law 887 Monaco
The housing stock in Monaco is divided into three distinct sectors; the free sector, the state-owned sector, and the regulated sector.
When renting or buying property, it’s important to understand the key differences between each one and the relevant laws that govern certain properties.
One such law is Law 887, which applies to the regulated sector. A property that falls under this law will govern the way you can rent the property, and there will also be certain conditions that you must follow when it comes to buying a property bound by Monaco’s Law 887.
What is Law 887 in Monaco?
Apartments subject to Law 887 can only be rented to specific individuals, including Monegasque tenants, a tenant who has been domiciled in the principality for more than five years and working in the city-state for more than six months, or a tenant who has been working in Monaco for more than five years. Additionally, the landlord can also rent the property to immediate family members, including ascendants, descendants or their spouse.
What property is Law 887 in Monaco applicable to?
The next stage is to find a Monaco rental that perfectly suits your needs. You can choose from several types of property throughout the principality, from Belle Epoque villas, penthouse suites, studios and 5-bedroom apartments.
It is essential to provide Ageprim with all the information you want from your rental property, including your budget, your desired location, your preferred type of lease, and the desired amenities so that our agents can help you find the perfect home.
Once you and your agent have narrowed down the list of prospective Monaco apartments for rent, you may have to plan for an in-person viewing and inspection of the properties.
What is the purpose of Monaco Law 887?
The purpose of Monaco’s 887 Law is to protect Monegasques and individuals who have been domiciled or working in the principality for an extended period.
Renting a property with Law 887
When you rent an apartment in Monaco where Law 887 applies, you must be prepared to rent it to the tenant for a minimum period of six years, and the tenant must be a Monegasque or an individual that has been domiciled or working in the principality for more than five years. The landlord, or the agent representing them, must provide supporting documents to the Monegasque Housing Directorate to demonstrate that the proposed tenant or tenants are eligible to rent the property.
Buying a property with Law 887
When investing in Monaco real estate, it’s important to check whether the property is subject to Law 887 as it provides a restriction on who the property can be rented to as well as a commitment to rent it for a minimum of six years. Most properties are not subject to Law 887 as it only applies to older properties built before September 1947, and much of this housing stock is diminishing as old buildings are torn down to make way for new developments, which are not subject to this law.
Most apartments that are subject to Law 887 are in Monaco’s older period buildings, with many boasting stunning architectural details, high ceilings, and larger rooms. Indeed, for many investors, purchasing an apartment subject to Law 887 can be a financially savvy investment, as there is often more room for negotiation on the sale price. This enables investors to benefit from a competitively priced apartment yet still have the freedom to rent the property at market rate. Of course, for those seeking a property to reside in, Law 887 has no bearing on their decision as there is no restriction on a property owner residing in the property.
Finally, it’s important to note that prior to the sale or purchase, the State has the right of preemption. Once you have signed the sales agreement, you must advise the State of your intent to purchase the property. The State has four weeks in which to respond, and you must wait this period before proceeding with the sale.
How can Ageprim help?
An experienced real estate agent, such as Ageprim, will be able to advise you whether a property you are interested in purchasing is bound by law 887 or help you navigate renting a property under Law 887. With more than 40 years’ experience, Ageprim is a key player in Monaco’s real estate industry, and our team is trusted for their honesty, transparency, and expertise. If you want to buy an apartment in Monaco or rent property in Monaco, contact us today. We will be delighted to assist you.