When considering renting an apartment or making an investment in a rental property in Monaco, it’s crucial to understand the categorization of Monaco’s housing stock, which is divided into three distinct sectors: the free sector, the state-owned sector, and the regulated sector.
The sector in which your property is classified will dictate the rules and regulations surrounding property rental and ownership, potentially influencing the sales process as well. Among the various laws that apply to these sectors, Monaco Law 1235 holds particular significance.
Monaco Law 1235 primarily pertains to Monaco’s regulated sector, which typically encompasses older properties, specifically those constructed prior to 1947. This law is specifically crafted to secure affordable housing access for Monegasque citizens and eligible residents. It achieves this goal by imposing restrictions on lease terms and determining the eligibility of individuals who can rent certain properties within this sector. Furthermore, there are additional regulations that must be adhered to when it comes to the sale of properties falling under the jurisdiction of Law 1235 Monaco.
Monaco Law 1235 extends its reach to encompass all residential properties constructed prior to September 1, 1947, with specific exemptions granted to properties covered by Monaco Law 887, those newly designated for residential use since June 25, 1970, and special provisions as outlined within the law.
When you own a Monaco apartment that falls under this regulation, it’s important to note that there are specific restrictions in place should you decide to rent it out.
Properties governed by Monaco Law 1235 are only eligible for rental by the following individuals:
If you own a Monaco apartment governed by Law 1235 and wish to rent it out, you are required to report the property to the Housing Department. They will subsequently publish the property’s availability in the Official Journal and manage tenant applications, directing potential renters to the owner based on the priority criteria listed above.
If you are in search of Monaco real estate for rent, which may include apartments subject to the regulations of Law 1235, our team is readily available to assist you in your search.
Properties falling under the purview of Monaco Law 1235 are subject to specific regulations when it comes to renting them out. In addition to limiting eligible tenants as mentioned earlier, the lease for such properties must adhere to certain key provisions, which include:
These regulations underscore the tenant-oriented focus of Monaco Law 1235, emphasizing the importance of tenant protection and maintaining a stable rental environment within the principality.
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.