Definition of the common law lease (lease under the Civil Code)

The lease under the Civil Code is a rental agreement governed by articles 1708 et seq. of the Civil Code. Unlike residential leases subject to strict regulation, this type of lease relies essentially on the contractual freedom of the parties.

It allows the lessor and the lessee to freely set:

• The duration of the lease

• The rent amount

• The termination conditions

• The specific clauses of the contract

The Civil Code rental lease is therefore not intended for the tenant's primary residence. It applies only when the rental voluntarily or legally falls outside the scope of the 1989 law.

In which cases should a Civil Code lease be used?

The Civil Code lease is used in very specific situations, often linked to so-called "atypical" rentals.

You can resort to a common law lease in particular in the following cases:

• Secondary residence of the tenant

• Company housing

• Rental to a legal entity (company, association)

• Short or medium-term furnished rental excluding primary residence

• Temporarily occupied housing (professional mobility, mission)

In these situations, the Civil Code rental lease allows for more flexible management of your real estate, while remaining compliant with the legal framework.

Advantages and limitations of the Civil Code lease

The advantages for the landlord

The common law lease offers many advantages for a property owner:

• Great contractual freedom

• Freely set lease duration

• More flexible termination conditions

• Unregulated rent setting, even in high-demand areas

• Adapted to temporary or professional rentals

It is particularly appreciated in a flexible rental investment strategy, especially in large cities.

Limitations and risks to anticipate

However, the lease under the Civil Code also has limitations:

• Possible reclassification into a residential lease if the conditions are not met

• Less protective for the tenant, which can lead to disputes

• Rigorous legal drafting is essential

Improper use of the Civil Code rental lease can lead to sanctions, hence the value of support in professional rental management.

Obligations of the parties in a common law lease

Even if the Civil Code lease offers great freedom, certain legal obligations remain essential.

Obligations of the lessor (owner)

As a landlord, you must in particular:

• Deliver decent housing, in line with the intended use

• Guarantee the peaceful enjoyment of the property

• Carry out necessary major repairs

• Provide the mandatory technical diagnostic reports

• Respect the clauses provided for in the lease agreement

These obligations stem directly from the Civil Code and engage your responsibility.

Obligations of the lessee (tenant)

On their part, the tenant must:

• Pay rent and charges at the scheduled times

• Use the housing according to its destination

• Maintain the property and carry out tenant repairs

• Return the housing in good condition at the end of the lease

The Civil Code rental lease is therefore based on a clear contractual balance between the parties.

How to draft a compliant and secure Civil Code lease?

The drafting of a lease under the Civil Code must never be approximate. It is a tailor-made contract that requires special attention.

Essential clauses to include in the contract

To secure your common law lease, certain clauses are essential:

• Precise identification of the lessor and the lessee

• Detailed description of the rented property

• Destination of the property (secondary residence, professional use...)

• Duration of the lease

• Rent amount and payment terms

• Security deposit

• Conditions for termination and notice

• Allocation of charges and works

These elements are essential to avoid any legal ambiguity.

Prohibited or risky clauses to avoid

Even in a Civil Code lease, certain clauses can be deemed unfair:

• Clauses affecting the freedom of the tenant

• Advance waiver of any legal recourse

• Clauses contrary to public policy

• Provisions allowing eviction without a judicial decision

Poorly managed drafting can lead to the nullity of the lease or its reclassification.

Setting the rent in the context of a Civil Code lease

One of the main advantages of the Civil Code rental lease lies in the freedom to set the rent.

Unlike leases subject to the 1989 law:

• The rent is not capped

• Rent control does not apply

• The amount is set freely between the parties

This freedom is particularly attractive for properties located in areas with high rental demand.

Review and indexation of rent for a common law lease

The review of rent in a Civil Code lease is not automatic. It must be expressly provided for in the contract.

In particular, you can:

• Provide for an annual indexation clause

• Choose the reference index (IRL, ICC, ILAT depending on the use)

• Define the frequency and terms of the review

Without a specific clause, no rent increase can be applied during the lease.

Duration of the Civil Code lease and renewal conditions

The duration of the lease under the Civil Code is completely free:

• A few months

• One year

• Several years

The contract can provide for:

• A tacit renewal

• An express renewal

• An automatic termination at the end of the term

This flexibility makes it possible to adapt the Civil Code rental lease to specific rental projects.

Conclusion

The lease under the Civil Code is a powerful tool for landlords desiring more flexibility in managing their property. Properly used, it allows for optimizing rental profitability while adapting to specific situations. However, if poorly drafted or misused, it can expose you to significant legal risks. Hence the importance of a clear, compliant, and perfectly framed Civil Code rental lease.