Monaco’s housing landscape is characterized by a unique tripartite division, consisting of the free sector, state-owned sector, and regulated sector. Navigating the intricacies of these sectors is crucial when considering property rentals or purchases, as each is subject to distinct legal frameworks.
In particular, Monaco’s Law 887 comes into play within the regulated sector. This legal framework significantly influences the rules governing property rentals and purchases within its purview. Understanding the implications of this law is pivotal for anyone looking to engage with real estate in Monaco, as it shapes the terms and conditions applicable to both renters and buyers in properties governed by Law 887.
Properties falling under the purview of Law 887 in Monaco entail specific criteria for tenant selection. These apartments are exclusively available for rental to a restricted set of individuals, ensuring a controlled and tailored residency within the principality. Eligible tenants encompass:
Moreover, landlords have the flexibility to rent these properties to immediate family members, such as ascendants, descendants, or their spouse, fostering a sense of community and familial ties within the regulated sector of Monaco’s housing market. This approach ensures that Law 887 serves to maintain a balance between catering to local needs and accommodating long-term residents while also nurturing family connections within this unique housing framework.
Renting an apartment in Monaco governed by Law 887 entails a minimum six-year lease commitment. To rent such a property, landlords or their agents must provide the Monegasque Housing Directorate with supporting documents demonstrating the tenant’s eligibility, ensuring transparency and accountability in the selection process. This rigorous but structured approach aligns with Monaco’s objective of maintaining community ties while honoring its commitment to residents with deep-rooted connections to the Principality.
Apartments falling under Law 887 are often nestled within Monaco’s older buildings. This presents an appealing investment opportunity, as these properties typically offer room for negotiation in the sale price, making it an attractive choice for savvy investors. They can secure a competitively priced apartment and still leverage the flexibility to rent it at the prevailing market rate. For those in search of a residence, Law 887 imposes no restrictions on owner occupancy. However, it’s essential to acknowledge the State’s preemption right, a crucial step in the purchase process. Once a sales agreement is signed, you must inform the State of your intent to buy the property, with a mandatory four-week waiting period for their response before proceeding with the sale.
In conclusion, Monaco’s Law 887 serves as a protective measure for a specific group of individuals within the principality. Tenants commit to a six-year rental agreement with landlords, although renewal is not obligatory. After the initial year, tenants have the option to terminate the contract. Landlords can only rent their properties to immediate family members, Monegasque nationals, or residents with over five years of residence and six months of professional activity in Monaco. Additionally, those who have worked in Monaco for more than five years can be considered. These apartments are typically found in older buildings with limitations, such as lower floors and a lack of views, terraces, or parking. Furthermore, they are suitable for establishing businesses offering professional services.
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