Service charges (charges locatives) are a significant component of rental management in France. As a landlord, you pay various costs related to your property and building, but not all of these can be passed on to the tenant. French law defines precisely which charges are récupérables (recoverable) and which must be borne by the owner. Getting this right is essential for both legal compliance and profitability. This guide provides the complete list of recoverable charges and explains how to manage them effectively.
The Legal Framework
Recoverable service charges are governed by Article 23 of the Loi du 6 juillet 1989 and detailed in the Décret n°87-713 du 26 août 1987, which provides an exhaustive list. Only charges appearing on this list may be recovered from the tenant. The landlord cannot invent new categories or pass on expenses that are not explicitly listed.
The tenant pays charges as a monthly provision (provision pour charges) alongside the rent, with an annual settlement (régularisation) based on actual expenditure.
Category 1: Common Area Maintenance
Cleaning and Upkeep
- Salary and social charges of the building's caretaker or concierge (75% recoverable if they also handle waste disposal; 40% otherwise)
- Cleaning products and materials for common areas
- Contract with an external cleaning company for hallways, stairways, and shared spaces
- Maintenance of entrance mats, rubbish bins, and notice boards
Green Spaces
- Garden maintenance: mowing, pruning, watering, replanting annuals
- Maintenance of play areas and outdoor furniture in communal gardens
- Replacement of plants, shrubs, and flowers (but not trees, which are the landlord's responsibility)
- Products for lawn and garden treatment
Pest Control
- Disinfection and pest treatment (rats, cockroaches, etc.) in common areas
- Bedbug treatment in common areas (individual apartments remain the tenant's responsibility in most cases)
Category 2: Water and Energy for Common Areas
- Cold water: consumption for common areas (cleaning, garden watering) and individual units if no individual meter exists
- Hot water and heating: fuel or energy costs for collective heating systems, including maintenance of the boiler or heat pump
- Electricity: lighting of hallways, stairways, parking areas, and other common spaces
- Energy for lifts: electricity consumption for lift operation
Note: The cost of installing new heating equipment or upgrading the boiler is the landlord's responsibility and cannot be recovered. Only running costs and routine maintenance are recoverable.
Category 3: Lift Maintenance and Operation
- Electricity for lift operation
- Routine maintenance contract (inspection, lubrication, minor adjustments)
- Emergency call-out fees for breakdowns (labour only; parts replacement is the landlord's expense)
- Annual safety inspection costs
Major repairs and modernisation of the lift are not recoverable from the tenant.
Category 4: Building-Wide Equipment
Security and Access
- Maintenance of the intercom or video intercom system
- Electricity for door entry systems
- Maintenance of fire safety equipment (extinguishers, smoke detectors in common areas, fire doors)
- Maintenance of security cameras in common areas (if applicable)
Ventilation
- Routine maintenance and energy costs for the collective ventilation system (VMC)
- Replacement of filters and minor components
Television Antenna and Cable
- Maintenance of the collective television antenna
- Electricity for signal amplifiers
Category 5: Taxes and Contributions
- Taxe d'enlèvement des ordures ménagères (TEOM): the household waste collection tax is fully recoverable from the tenant
- Sweeping tax (taxe de balayage): if applicable in your municipality
Not recoverable: taxe foncière (property tax) is always the landlord's responsibility and cannot be passed on to the tenant under any circumstances.
Category 6: Individual Dwelling Charges
Certain costs related to the tenant's individual unit are also recoverable:
- Annual maintenance of the individual boiler: while the tenant must arrange and pay for this directly, the landlord can include it as a recoverable charge if the tenancy agreement specifies a collective maintenance contract
- Chimney sweeping: if the property has a working fireplace
- Minor maintenance of individual equipment: specified in the lease
How to Manage Service Charge Provisions
Setting the Monthly Provision
The monthly charge provision stated in the tenancy agreement should be based on the actual costs from the previous year, divided by twelve. Avoid setting it too low (which results in a large annual bill for the tenant) or too high (which may deter prospective tenants).
The Annual Settlement (Régularisation)
Once a year, the landlord must compare the total provisions collected against the actual recoverable charges incurred:
- If provisions exceed actual costs: reimburse the difference to the tenant
- If actual costs exceed provisions: request the additional amount from the tenant
The landlord must provide the tenant with:
- A detailed breakdown of charges by category
- The method of distribution (if applicable, e.g., by tantièmes in a condominium)
- Supporting documents, which must be made available for consultation for at least 6 months after the settlement is sent
Statute of Limitations
The landlord has 3 years to claim unpaid recoverable charges from the tenant. Beyond this period, the right to recover is lost. Conversely, a tenant who has overpaid may claim reimbursement within the same timeframe.
Non-Recoverable Charges: What the Landlord Must Pay
To avoid disputes, be clear about what cannot be recovered:
- Major repairs and capital expenditure (roof, facade, structural work)
- Property management fees (agency fees for rental management)
- Building insurance (landlord's policy for the structure)
- Property tax (taxe foncière)
- Major equipment replacement (boiler, lift motor, water pipes)
- Improvement works (adding an intercom, insulating the building)
Simplify Service Charge Management
Tracking recoverable charges across multiple properties, calculating provisions, performing annual settlements, and maintaining proper documentation is one of the most time-consuming aspects of rental management. Errors can lead to disputes and even legal liability.
Online rental management tools make this process far more manageable. With HelloRento, you can track all charges by property and tenant, automate the annual settlement calculation, generate transparent breakdowns for your tenants, and store all supporting documents in one place. Combined with automatic rent receipt generation and built-in electronic signature capabilities for your tenancy agreements, HelloRento is the all-in-one rental management software that keeps you compliant and organised. Try HelloRento now and take the hassle out of service charge management.