Competition Is Not Enough: No Rent Revision Without Material Change in Market Conditions
Written by, Séphora Amsellem on October 25, 2018
Knowing that the rents are typically overestimated, the operators of residences of tourism are willing to make the rent judicially set at their rental value before the term of the leases. Such judicial action may be used if there is any evidence of material change of local market factors. The French Supreme Court ruled that the presence of other competitors does not imply a material change of the local market factors. More precisely, the fact that other local competitors managed to decrease the amount of the rent paid by the co-owners and were thus able to offer better prices to tourists cannot be considered as a material change of the local market factors.