What is the duration and conditions of the bare rental lease?

Nude leasing appeals to many investors because it relies on a clear and protective legal framework. The tenancy agreement is strictly governed by the law of 6 July 1989, which guarantees both the security of the tenant and stability for the landlord. But what are the precise conditions of this type of lease and why is it so advantageous for real estate investors?

Duration of the lease

The first feature of the bare rental lease is its minimum duration:

3 years when the owner is a natural person (individual).

6 years if the owner is a legal person (SCI, company).

At the end of this period, the lease is tacitly renewed for the same duration, except for leave given by one of the parties. This stability allows the landlord to secure its rental income in the long term.

Financial conditions

The security deposit requested from the tenant cannot exceed one month’s rent excluding charges, which limits the risk of blockage at the entrance. The rent can be revised each year if an indexation clause is provided in the contract, based on the Rent Reference Index (IRL) published by INSEE.

Termination by the tenant and the landlord

The tenant may terminate the lease at any time with a notice period of three months, reduced to one month in a tense zone or for certain reasons (loss of employment, transfer, state of health).

The lessor, on the other hand, may give notice only at the end of the lease, and only in three specific cases:

Resumption of housing to live there himself or accommodate a loved one.

Sale of the property, with an obligation to offer a right of first refusal to the tenant.

Legitimate and serious reason (repeated unpaid bills, neighborhood troubles, etc.).

Legal framework and protection

The bare rental lease is therefore very protective for the tenant, which contributes to market stability. For the investor, this means that they benefit from strong legal security and visibility on their future revenues.

Conclusion

In summary, the bare rental lease offers a long duration, a solid legal framework and great rental stability. For investors, it is a strategic choice, particularly in the context of building wealth and generating recurring revenue.