Starting from September 15, tenants will be able to enjoy a reduction in agency fees. This fee revision is planned within the framework of the law of March 24, 2014 for Access to Housing and a Modernized Urban Planning (ALUR). What changes will occur for both real estate agencies and tenants? Does this reduction really benefit everyone?
On the evening of Tuesday, July 22, lawmakers adopted an amendment allowing for adjustments to the ALUR housing law by Cรฉcile Duflot, then Minister of Housing and Territorial Equality. Therefore, a revision of agency fees was approved. In Paris, the amount will be 15 euros per square meter; in so-called “tense” areas, including the Alpes-Maritimes department, these fees will be 13 euros per square meter; finally, in the rest of France, it will be 11 euros per square meter.
Frรฉdรฉric Pelou, president of FNAIM Cรดte dโAzur, explains what these fees cover: “First and foremost, it is important to keep in mind that when a real estate agency charges fees, it is for paying staff salaries and social security contributions. If the agency has an employee working on Saturdays or doing visits at 7:30 PM, it comes at a cost. Before, we had many services to offer tenants, such as electricity switching, the possibility of visiting on Saturdays, or even after work hours. Since there will be fewer fees, there will likely be fewer services to offer. Prospective tenants might be forced to take half a day off to come for a visit, for example.โ
Furthermore, “if a tenant pays more and realizes it afterward, they can request a refund from the agency itself. We can intervene. As long as the agency is a FNAIM member, there is certainly recourse for the tenant. So, we will be the mediator between the two parties,” says Frรฉdรฉric Pelou.
For Alain Gaulon, president of the National Housing Confederation (CNL) of Val-de-Marne, this law does not benefit everyone. “It is clear that we are always pleased when reforms allow tenants to pay fewer fees. However, this reform will benefit some but not others. For students or people living alone, hence in a studio, the reduction is considerable. But imagine the same scenario for a couple with a child needing a two-room apartment; the costs remain higher than those corresponding to renting a studio,” explains Alain Gaulon.
Regarding the purpose of these fees, Alain Gaulon agrees that they serve to pay for certain services. “We trust agencies to find solutions not included in the new reform and to continue paying their employees without any problem. In the housing sector, a severe shortage is undeniably present. Thus, demand is vastly higher than supply. Therefore, a crisis for agencies is not foreseeable; future tenants or owners will continue to seek their services to find housing,” he adds.
“The law should also clearly inform regarding the documents requested by agencies. Abuses can thus be avoided, making housing more accessible for some. Each agency is different. Some will apply higher fees, others will be more selective and request more documents. We find this incomprehensible. What is lacking is uniformity,” he laments.