FLATS UNDER LAW 1291/1235

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Apartments under laws 1291/1235

Understanding Law No. 1235 in Monaco: Rental Control and Tenant Priorities

Enacted on December 28, 2000, Loi n°1235 governs Monaco’s protected housing sector, primarily focusing on apartments constructed before September 1, 1947. This law aims to provide affordable housing options to specific categories of residents by regulating rent and tenant selection.

Key Provisions

Rent Control: Rents are determined by the Housing Department, ensuring affordability. Annual increases are regulated to prevent sudden spikes.
Tenant Eligibility: Priority is given to:
- Monegasque nationals
- Individuals born to Monegasque parents
- Spouses, widows/widowers, or divorcees of Monegasque nationals
- Persons born and continuously residing in Monaco since birth, provided their parents were residents at the time
- Individuals residing in Monaco for at least 40 consecutive years

Lease Terms: Leases are set for six years with automatic renewal under the same conditions. Tenants can terminate the lease at any time with three months’ notice. Landlords can terminate only with six months’ notice and must intend to occupy the property themselves.

Usage: Properties can be used for residential or mixed purposes.
Preemption Rights: In case of sale, the state has the first right of purchase, followed by the tenant.

Implications for Stakeholders

For tenants, Loi n°1235 offers stability and affordability. Landlords, however, face restrictions on rent pricing and tenant selection, which may affect investment returns.

For property owners and investors navigating Monaco’s complex housing laws, Law No. 1235 remains a central piece of legislation. This law applies primarily to government-controlled housing and seeks to ensure affordability and access for eligible tenants.

Obligation to Rent or Occupy

Owners of properties under Law No. 1235 are obligated to either occupy the unit or rent it out. Vacant units must be declared, ensuring efficient housing use and avoiding speculation.

Rent Control & Increases

The rent is set by the Monaco government, with annual increases strictly regulated. This creates a stable but less flexible investment environment.

Tenant Eligibility & Selection

Landlords must rent to tenants based on a government-defined priority list, typically favoring Monaco nationals, residents with long-term employment, or those with family ties to the Principality.

Lease Terms & Termination

Fixed lease duration: 6 years
Automatic renewal under the same conditions
Tenant may terminate with 3 months’ notice
Landlord may terminate with 6 months’ notice, but only for personal use

Usage & Destination

Properties can be used for residential or mixed-use purposes under this law.

Pre-Emption Rights

The State has priority in purchasing property governed by Law No. 1235. Failing that, the tenant may also hold pre-emption rights under certain conditions.

Law No. 1235 is designed to preserve Monaco’s social and housing balance. For property owners, it requires commitment but provides stability in return. This law favors long-term holding strategies with a focus on community and government cooperation.

Curious whether a property falls under Law No. 1235? Contact Monaco Properties — we guide you through legal frameworks and investment opportunities in Monaco’s unique market.

Apartments under law 1291/1235