Enacted on June 25, 1970, Law No. 887 establishes a precise legal framework for the rental of residential properties in Monaco within what is known as the protected sector.
Faced with constant real estate pressure in the Principality, this law was designed to preserve access to housing for Monegasque residents and their equivalents, while balancing the rights and obligations of landlords and tenants.
Even today, this legislation remains a central pillar of the rental market in Monaco. It applies to many old properties, and understanding how it works is essential for any investor, landlord, or future resident.
To consult the official text, visit the Legimonaco website.
Sovereign Ordinance No. 4,621 further details the application procedures for this law.
Law No. 887 defines a protected sector within the Monegasque rental market. Unlike the free sector, the properties governed by this law cannot be rented to just anyone: tenant selection is governed by strict criteria, and rental conditions are clearly defined by legislation.
Leases signed under the regime of Law No. 887 must meet several requirements:
The contract must also be declared to the Housing Department before any rental can take place.
Landlords are required to:
In return, they benefit from a clear legal framework with enhanced administrative monitoring that secures their procedures.
The law reserves rental properties for individuals belonging to certain categories:
These criteria aim to promote the maintenance of the Monegasque and resident population within the urban fabric, in a spirit of national solidarity.
Before renting a property covered by this legislation, the owner is required to file a declaration with the competent authorities.
This process ensures that the property meets legal allocation conditions and is rented to an eligible tenant according to the law's criteria.
For investors, Law No. 887 can represent an attractive heritage opportunity. Properties subject to this law are often located in older buildings, well-located, with typical architecture of old Monaco. They generally maintain stable long-term values and can be acquired at a slightly lower price than in the free market due to regulatory constraints.
The profile of tenants, often long-term residents or Monegasque families, ensures rental stability. The precise legal framework also reduces the risk of disputes.
However, this stability comes at a price. Investors cannot freely choose their tenants or set the rent at their discretion. As a result, the rental yield is often more moderate than in the free sector. Administrative delays related to the declaration procedure must also be anticipated.
In summary, investing in a property under Law No. 887 is a long-term choice that appeals to buyers seeking a secure and sustainable asset rather than immediate profitability.
Law No. 887 remains a fundamental element of Monaco's housing policy. By regulating part of the rental market, it protects the interests of residents while offering landlords a clear legal environment. It is a cornerstone of the Monegasque real estate landscape, essential for those looking to rent an apartment in Monaco.
It is a law enacted in 1970 that regulates the rental of residential properties in a protected sector. It imposes tenant selection criteria and strict lease conditions.
Priority is given to Monegasques, people born to a Monegasque parent, spouses or widows/widowers of Monegasques, and certain long-term residents.
Tenants benefit from a long-term lease (minimum 6 years), regulated rent, and protection against abusive evictions.
It limits the freedom of rental management but offers stable income, a reliable clientele, and long-term property value appreciation.
No. It only applies to residential properties located in the protected sector.
The official form, a title deed, a copy of the lease, proof of compliance, and documents concerning the tenant must be provided.
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