Who can rent a flat in Monaco? What are the procedures? What is the duration of a lease? Find out the answers to some of the questions related to renting in Monaco with Estelle Lecointre, one of our brokers.
Who can rent a flat in Monaco?
Anyone can rent a flat in Monaco, whether they wish to live there or not. In both cases, it is important to prepare your application carefully and to gather all the necessary documents so that the lessor and the estate agency can assess the solvency of the candidate for rental.
What is the procedure for renting an apartment?
The real estate agency, after having examined the file, then establishes the rental offer which usually contains the essential elements constituting the lease contract: identity of the parties, designation of the property, rental price and rent indexation, duration of the lease.
In support of this rental offer, the candidate must pay, in order to reserve the flat, a sum equivalent to 3 months' rent, the security deposit (corresponding to 3 months' rent plus charges), 1% registration fee calculated on the rent and charges, over the duration of the lease, agency fees which represent 10% excluding VAT, i.e. 12% including VAT, calculated on the first year's rent only.
In addition, if the inventory is carried out by a bailiff, a deposit is requested from the applicant, the amount of which varies according to the condition and size of the flat. As the specific conditions of a rental agreement are contractual, they may vary according to the situation.
In order to rent for the first time in Monaco, it is generally required to have opened a bank account in the Principality. If this is not the case, it is nevertheless possible to pay the rent and charges from a foreign bank account and, in this circumstance, the applicant will often be asked to pay, in advance, a year's rent. In addition, the applicant must provide proof that a bank account has been opened in the Principality during the year. Then the following year, the rent can be paid quarterly.
As soon as the landlord accepts the offer, the candidate is committed without the possibility of withdrawal unless suspensive clauses are stipulated. It is then necessary to pay the balance due and sign a rental contract or "lease" before proceeding with the inventory and handing over the keys to the flat.
The tenant will have taken care to take out compulsory comprehensive home multi risk insurance (MRH).
What is the duration of a lease and the conditions for its termination?
The lease contract resulting from the will of the parties, provided of course that it does not contravene legislative provisions, is valid for the duration chosen by them, usually between one and three years, renewable thereafter by tacit agreement, with the possibility for each party to terminate it, generally by giving three months' notice before the expiry date. If this period is not respected by the tenant, he/she commits himself/herself for another year.
However, the parties may agree that after a certain period of time they may end the lease at any time. Similarly, they can agree to change the conditions of duration and termination by means of an additional clause.
Is it compulsory to take the residence?
Once the lease has been registered with the Tax Authorities, the tenant may apply for residency status in the Principality if they wish.
However, taking up residence is not compulsory and, consequently, neither is applying for a residence permit. Nevertheless, if a person wishes to spend more than three consecutive months in the Principality, he or she must apply for a residence card from the Monegasque authorities, as is the case for those wishing to become residents, provided that they are at least 16 years old. In both cases, all the necessary documents must be obtained to initiate the application procedure for a first residence permit, which varies according to the applicant's nationality and more particularly whether or not he or she is a citizen of a country belonging to the European Economic Area (EEA) and associated states. In particular, a "type D" long-stay visa must generally be obtained prior to moving to the Principality for applicants who are citizens of a country outside the EEA, from the French embassy closest to their usual place of residence.
The final step in the residency application process is an interview with Public Security (Residents' Section) to discuss the application.
To have the privilege of living in the Principality requires a thorough knowledge of the administrative formalities and steps involved, which is not always easy when you are a foreigner. This is why Valeri Agency will be delighted to assist each applicant in his or her search for a flat and application for residence, with the help of its partners.