Renting an Apartment in Monaco

Introduction

Monaco, the glamorous Principality on the French Riviera, is renowned for its luxury and exclusive lifestyle. If you are considering renting an apartment in Monaco, it is essential to understand the specific conditions and procedures governing rentals in this sovereign state. This guide will walk you through the steps required to rent an apartment in Monaco and inform you about the necessary conditions.

Searching for an Apartment

The first step in renting an apartment in Monaco is exploring the available properties. It is advisable to work with an experienced real estate agency. Azura Properties Monaco specializes in rentals and property management, offering guidance throughout your search and relocation. Most rental apartments in Monaco are unfurnished.

Budget and Financial Guarantees

Before starting your rental journey, evaluating your budget is crucial. Rental prices in Monaco are among the highest in the world, so it’s essential to assess your financial resources. Additionally, landlords may require strong financial guarantees, such as a bank guarantee or a bank letter of guarantee, along with a security deposit, often equivalent to several months’ rent, which is only used for potential repairs upon your departure.

Required Documents

Once you have found a suitable apartment, you will need to submit various documents for your rental application. These typically include:

A copy of your passport
Proof of residence
Professional references
Proof of income

Signing a Rental Agreement

A pre-contract, known as a rental offer, must be signed by the tenant and submitted to the landlord for approval. The prospective tenant must also pay a security deposit to reserve the selected apartment before signing the lease agreement once the landlord accepts the offer.

In Monaco, rental agreements are governed by Monegasque law and are drawn up by the real estate agency between the landlord and the tenant. These contracts specify rental conditions, lease duration (a minimum of one year for residential properties), rent amount, and payment terms. Rent and building service charges are typically paid quarterly in advance via the agency’s bank account.

Security Deposit

Landlords in Monaco generally require a security deposit, often equivalent to three months’ rent. This deposit is held by the real estate agency or landlord and is refundable at the end of the lease, subject to the condition of the apartment upon departure.

Agency Fees

Real estate agency fees for renting a property in Monaco amount to 10% of the annual rent (excluding tax), as per the official rates set by the Chambre Immobilière Monégasque. These fees cover various services, including property search, lease drafting, move-in inspections, and handling subscription contracts.

Additional Costs

Beyond the monthly rent, tenants should budget for additional costs such as:

Building service charges, paid quarterly with rent, covering concierge services and common area maintenance.
Electricity contract (SMEG).
Internet, television, and telephone services via Monaco Telecom.
Home insurance, which is mandatory.

Lease Registration

Rental agreements in Monaco must be registered with the Service de l’Enregistrement. Once the lease is registered, along with a registered copy, the SMEG electricity contract, and a utility bill, you can provide proof of residence in Monaco. This allows you to complete further administrative processes, such as opening a bank account and applying for residency with the local authorities. Registration fees amount to 1% of the annual rent plus charges, payable to the agency in the first year.

Residency and Residence Permits

Renting an apartment in Monaco does not automatically grant residency. Individuals must apply for residency with the appropriate authorities. Anyone aged 16 or older wishing to stay in Monaco for more than three months per year or establish permanent residency must apply for a residence permit. Azura Properties Monaco can assist you throughout this process.

Conclusion

Renting an apartment in Monaco can be an exciting experience, but it is essential to understand the specific conditions and procedures of this small but prestigious state. By following the steps outlined in this guide and working with local experts, you can find the perfect apartment that meets your needs and enjoy all the benefits Monaco has to offer.