The Monegasque rental market is highly regulated and distinct, requiring landlords to understand their responsibilities and entitlements clearly—whether leasing a residence, office, or commercial space, in either the free or protected sectors.
A landlord (individual or legal entity) becomes legally bound by a lease agreement once they rent out property. This contract governs the relationship with the tenant, defining each party’s rights and obligations. Lease terms and tenant eligibility differ based on the sector—free-market or protected.
Properties constructed after 1st September 1947 fall under the free-market regime. These may be leased without restriction on tenant nationality. Landlords have broad discretion to set lease durations, rent, and revision clauses (typically annual).
Per Article 1568 of the Monegasque Civil Code, tenants must pay rent and charges regularly and use the property according to its stated purpose. Landlords have the right to initiate eviction proceedings if the tenant defaults, alters the property’s use, causes damage (Art. 1569), or fails to provide sufficient guarantees (Art. 1592). Eviction requires legal action initiated by a local lawyer. Tenants have 15 days to appeal and one month to vacate following a court order.
Landlords may request a deposit (often three months’ rent/charges) to cover unpaid dues or repairs. It must be refunded within two months of lease termination, minus justified deductions.
With prior notice, landlords may access the property for inspections, sales, or re-letting. If the tenant refuses visits, penalty clauses may apply.
Lease Termination and Repossession
Upon lease expiry, landlords can reclaim the property by issuing notice (typically three months), unless the lease is under Laws No. 1,235 or 887, which impose stricter termination rules.
Tenants must keep the property in excellent condition and return it as received (Art. 1570), excluding natural wear or force majeure (Art. 1594). The tenant covers minor repairs and upkeep. Appliances must be repaired or replaced by the tenant unless aged.
Buildings built before 1st September 1947 often fall under Monaco’s protected housing regime. These laws aim to preserve housing for Monegasque nationals and long-term residents.
Applies to most older apartments. Properties can only be rented to “protected persons” registered with the Housing Department. Leases are for six years, renewable. Tenants can terminate annually, while landlords may only do so under specific conditions (e.g., personal use, redevelopment). Alternative housing must be offered if eviction is justified. Rents are regulated by the Housing Department.
This law grants more flexibility. It allows leasing to protected persons or long-term workers/residents. Lease rules are similar (six years, renewable), but landlords can terminate without cause at the end of a term. Rent is freely set.
Vacancy declarations are mandatory—within one month (Law 1,235) or eight days (Law 887). Delays or non-compliance can lead to fines up to €50,000.
Respect the permitted use of the property (no commercial use in residential leases).
Ensure structural integrity and watertightness (roofs, railings, windows).
Provide and maintain habitable conditions (Art. 1559–1560).
Cover major repairs.
Not alter the premises during the lease (Art. 1563).
Hold valid non-occupant landlord insurance as per Law No. 1,531 (2022).
Understanding and complying with Monaco’s detailed rental laws is essential for landlords. Whether operating in the free or protected sector, legal compliance protects both the property and the landlord’s financial interests.
