Makes an exact application of

Application pratique:

This case law confirms that if a tenant sublets part of the premises for a rent substantially equal to the total rent they pay, they derive an unjust benefit. You are entitled to request a rent increase to capture this added value. Collect the sublease agreement and rent receipts, then seek a rent revision through negotiation or the commercial lease renewal court (juge des loyers commerciaux).

Application pratique:

The court ruled that subletting only a portion at a rent almost equal to the whole lease entitles the landlord to a rent increase, as you are effectively occupying your retained part for free. Review your sublease pricing to ensure it is not disproportionately high compared to the main lease. If the landlord challenges, be prepared to renegotiate the head lease rent or adjust the sublet terms to avoid a formal demand under Article 21 of the 1953 Decree.

Application pratique:

Under Article 21 of the 30 September 1953 Decree, if the sublease rent for only part of the premises is substantially equal to the head lease rent, the landlord can claim a rent increase. Before buying, audit the tenancy and subtenancy agreements to calculate the benefit derived by the tenant. Post-acquisition, you can initiate a rent revision by serving a formal notice on the tenant, referencing this case law, and if needed, apply to the commercial court for a new rental value assessment.