What is a phasing-out lease from the 1948 Act?

Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

The owner of a dwelling subject to the 1948 law may decide to discontinue this scheme in order to re-lease at market price, under certain conditions. The landlord (or his representative) must then sign with the tenant a phasing out of the 1948 act, for a period of 8 years. Then, the tenant and the landlord (or his representative) will be able to sign a new lease, with a rent corresponding to the market price. We explain.

Housing must be subject to the 1948 Act.

It must be classified as Category II B or Category II C. These categories include housing of good or even fairly good quality.

The landlord is authorized to make a proposal for a phased-out lease when the resources of the persons accommodated exceed a certain amount.

The resources of the persons housed to be taken into account correspond to the total taxable net income they received during the calendar year preceding that of the owner's proposal.

The amount from which the landlord is allowed to make a proposal for a phased-out lease depends on the address of the dwelling:

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General case

Tableau - Income beyond which the phase-out lease is possible

Number of persons accommodated

Total net taxable income

1 person

€34,233

2 people

€41,775

3 people

€49,319

4 people

€56,861

Per additional person

+ €7,542

Île-de-France

Tableau - Income beyond which the phase-out lease is possible

Number of persons accommodated

Total net taxable income

1 person

€45,644

2 people

€55,700

3 people

€65,757

4 people

€75,815

Per additional person

+ €10,056

1Determination of new rent

The rent must be set by reference to the prices usually practiced in the neighborhood, during the last 3 years and for comparable housing.

FYI  

This rent will apply gradually. The difference between the old rent and this new rent will be spread over the duration of the phase-out lease (8 years old).

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Up to 1 million inhabitants

The landlord must rely on at least 3 rental references.

Some references (period of construction of a building, typology of dwellings...) can be obtained from network of local observatories.

FYI  

These references must be mentioned in the proposed phased-out lease to be sent to the tenant.

Agglomeration of more than one million inhabitants

The landlord must rely on at least 6 rental references.

Some references (period of construction of a building, typology of housing...) can be obtained from the rent observatory of the Paris metropolitan area (Olap) or with the network of local observatories.

FYI  

These references must be mentioned in the proposed phased-out lease to be sent to the tenant.

2Sending the proposal of the new rent to the tenant

To terminate the residential lease subject to the 1948 Act, the landlord (or his representative) must send the tenant a proposal for phase-out lease :

The lease proposal must include the following information:

  • Name or denomination of the owner, his domicile or registered office, as well as those of his agent, if necessary
  • Effective date of the phase-out lease and its duration (8 years)
  • Building concerned and its destination
  • Accommodation concerned and, if necessary, enumeration of the equipment and common areas to which the tenant has access
  • Rent amount, method of payment and annual review rule
  • Amount of security deposit, if required
  • Living area of the dwelling concerned
  • Written reproduction of article 25 and articles 28 to 33 of law 86-1290 of 23 december 1986
  • List of references used to set the rent (at least 3 or 6 rent references, depending on the size of the agglomeration where the dwelling is located)

3Tenant Response

From the receipt of the proposal of phase-out lease, the tenant has 2 months to do any of the following:

  • Inform the owner (or his representative) that the resource conditions authorizing a phase-out lease are not respected. The tenant must then accompany his response with the necessary supporting documents.
  • Refuse the proposal of the landlord (or his representative) and, if the tenant has done at his expense work that has substantially improved the comfort or equipment of the dwelling, ask for their reimbursement
  • Accept the proposal of the landlord (or his representative) and, if the tenant has done at his expense work that has substantially improved the comfort or equipment of the dwelling, ask for their reimbursement

The tenant must send his answer to the owner (or his representative):

If the tenant chooses not to respond within 2 months, this lack of response is considered a refusal.

4Procedure according to the tenant's response

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In case of agreement

The phasing-out lease takes effect 6 months after date of proposal sent by the owner (or his representative), except in exceptional cases.

The new rent does not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by eighth annual, that is to say over 8 years.

The annual review according to the evolution of theIRL: titleContent may be applied, provided that a clause of the lease so provides.

If the tenant has requested the reimbursement of work, the amount is fixed and is refunded when signing the contract. phase-out lease. At the request of the owner (or his representative), the refund can also be staggered during the gradual exit lease. If the debt still exists at the end of this lease, the owner (or his representative) then settles the balance to the tenant.

In case of disagreement or no response from the tenant

Within 3 months which follow the receipt of the proposal by the tenant, the landlord (or his representative) or the tenant may seize the departmental conciliation commission. This approach is not mandatory, the protection litigation judge can be entered directly.

The judge can be seized within 6 months of the proposal of the owner.

Warning  

If the judge is not seized within 6 months of the proposal of the owner, the housing remains subject to the 1948 law.

The judge decides on the requests of the tenant and the owner and sets the amount of the new rent.

The gradual exit lease is considered to be concluded under the terms and conditions set by the judge.

The new rent will not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by eighth annual, that is to say over 8 years.

The annual review of the amount of the rent according to theIRL: titleContent may be applied, provided that a clause of the lease so provides.

At the end of phase-out lease 8 years, a new lease must be concluded.

This new lease is subject to the law of 6 july 1989.

The rent is set freely by the owner, in compliance with the statutory provisions.

Warning  

The landlord (or his representative) will not be able to give leave to the tenant who, at the end of the 8-year lease, is over 65 years old or is disabled. He will also not be able to increase the rent when the lease is renewed.

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