Rental charges are referred to as recoverable charges in real estate law. They correspond to expenses paid by the landlord on behalf of the tenant, and which the tenant must reimburse. Not all charges identified as rental charges are automatically recoverable. They therefore require close attention, as their average level represents around 20% of the rent, and up to 40% in high-end properties offering premium services.
Rental Charges: What Is the Difference Between Recoverable and Non-Recoverable Charges?
The legal principle used to distinguish recoverable from non-recoverable charges is the following: only expenses corresponding to services from which the tenant directly benefits may be recovered by the landlord. If the tenant does not benefit directly, the charge cannot be passed on.
Article 23 of the Law of 6 July 1989 and its implementing decree provide a limitative list that can be summarised into three categories:
- Services linked to the dwelling and the use of the building: cold and hot water, collective heating, elevator, cleaning of common areas.
- Routine maintenance and minor repairs: cleaning products, light bulbs for common areas, maintenance contracts.
- Taxes: household waste collection, street cleaning, sanitation when collective.
The landlord’s condominium fees are therefore only partially recoverable from the tenant.
How to Distinguish Routine Maintenance from Repairs?
The distinction is crucial because routine maintenance expenses are recoverable, whereas repair-related expenses are not. For example:
- Maintenance of the collective boiler is recoverable, whereas replacing the boiler is not.
- Maintenance of green areas is recoverable, but full landscaping renovations remain the landlord’s responsibility.
- Monthly maintenance of the elevator (around €200/month for a 20-unit building) and minor repairs are indeed recoverable. However, replacing the motor (around €15,000) or upgrading it to current standards (approximately €30,000) is borne by the landlord.
The same logic applies to heating: annual maintenance and chimney sweeping are recoverable, whereas replacing the boiler or radiators is not.
This distinction aims to protect the tenant: it prevents the tenant from bearing investment costs that increase the landlord’s property value.
Which Specific Charges Can Be Billed to the Tenant?
The 1987 Decree provides an exhaustive list of charges the landlord may recover.
Water and energy represent the largest category. Recoverable charges include cold and hot water consumption, collective heating and its hot water production, and electricity for common areas. Routine maintenance of installations (boiler, pipes, meters) and products needed for water treatment are also recoverable.
Services relating to hygiene and safety form the second category. The concierge’s salary is recoverable up to 75%, as the remaining 25% corresponds to administrative tasks performed on behalf of the landlord. Cleaning common areas (labour and cleaning products), household waste removal, and pest control services are also included.
Maintenance of collective equipment constitutes the third category. This includes the elevator (maintenance, minor repairs, electricity), security equipment (intercom, entry code, automatic door), collective antennas, and green areas depending on the building. For the latter, only routine maintenance (mowing, trimming, watering) and small equipment purchases are recoverable; creation or redesign projects remain at the landlord’s expense.
Recoverable taxes and fees are limited to three items: household waste collection tax, sanitation fee if collective, and street cleaning tax where applicable. Property tax, even though it finances services the tenant benefits from, remains entirely the landlord’s responsibility.
How to Calculate and Regularise Rental Charges?
In practice, the landlord requests monthly provisions based on the previous year’s charges. These provisions are added to the rent and must appear separately on the receipt.
Once a year, the landlord prepares the actual charge statement and proceeds with regularisation. If too much was paid, the tenant is reimbursed; if not enough, the tenant pays the difference.
The tenant has a right to verify the charges. They may request supporting documents: invoices, maintenance contracts, condominium charge statements.
This verification can be exercised for one month following the charge statement. In the event of an error, the tenant has up to five years to claim reimbursement (five-year limitation period).
Landlords who have subscribed to a rental guarantee insurance must be particularly rigorous with their charge accounting to avoid disputes.
What Are the Specificities for Furnished and High-End Rentals?
Furnished rentals follow a special regime, as they generally allow for flat-rate charges without detailed justification. This flat fee, negotiated in the lease, simplifies management. However, it must remain proportional to actual expenses to avoid requalification as a disguised rent supplement.
High-end properties involve specific and often substantial charges, such as 24/7 concierge service, a private gym, a spa, or daily maintained gardens.
These premium services generate significant costs but enhance the rental value. For example, an apartment on Avenue Montaigne with all such services may involve €1,000 in monthly charges for 150 m². Tenants accept these amounts because they correspond to real, directly enjoyed services.
How to Handle Disputes Regarding Rental Charges?
In practice, most disputes concern three main issues:
- The nature of charges: the tenant disputes whether certain expenses are recoverable. Solution: strictly follow the 1987 decree—any charge not listed is non-recoverable.
- The amount of monthly provisions: too high compared to actual expenses. A practical solution is to adjust provisions after each annual regularisation.
- The absence of supporting documents: the landlord fails to provide the required documents. Without justification within one month, the tenant may withhold charge payments from future rent until documents are produced. The Departmental Conciliation Commission may intervene free of charge in persistent disputes.
For high-end properties, a professional property manager avoids these pitfalls thanks to rigorous and transparent accounting.
To optimise the management of rental charges in your premium investments, Consultants Immobilier and its network of 18 agencies assist you with producing compliant charge statements, negotiating with condominium managers to control common charges, and securing the legal framework of your rental income while protecting the rights of all parties involved.