Can landlord and tenant freely agree rents in French Polynesia?
The initial rent can be freely agreed between the owner and the renter. However, the rent can be revised only once a year, and only if a clause in the contract (carefully drafted) specifies it. The increase cannot be above the increase of the four-quarterly average of the INSEE index of construction costs. At the end of the contract, if the owner wishes to renew but also to raise the rent, he must demonstrate that the rent is manifestly underneath the current standard for the area and for comparable residences, by furnishing nine examples, each with extensive details – exact addresses, surface areas, state of decoration, date of construction, time during which the residences have been rented, and rental amount. If the increase arrived at is more than 10%, it must be spread over six years, even if the contract is only for three years. If no agreement is reached, the owner must go the Departmental Conciliation Commission (a free service), and if that fails, to a judge.
