• MMC

As part of an international assignment to France, housing is a key factor in ensuring a successful start to the role. Beyond budget or location, the contractual framework of the lease can have significant implications for both the employee and the employer.

Two main legal frameworks coexist:

• the residential lease, governed by the Law of July 6, 1989, strengthened by the Alur Law;
• the Civil Code lease, based on the general provisions of the French Civil Code and offering greater contractual freedom.

In the context of international mobility, choosing between these two frameworks is neither a theoretical preference nor an automatic decision. It must be assessed in light of the actual use of the property, the contractual structure, and the constraints of the real estate market, which is often particularly tight.

The Alur Law Lease: A Protective Framework for a Primary Residence

When a property is intended to serve as the employee’s primary residence — meaning it is occupied personally on a long-term basis — the residential lease becomes the reference framework.

This regime is designed to protect tenants and regulate certain practices, including:

• the minimum lease term,
• the amount of the security deposit,
• caps on agency fees charged to the tenant, depending on the geographic area and the size of the property.

For international employees, this framework provides legal certainty and long-term visibility, both essential for a smooth relocation. However, in highly competitive markets, it may limit access to certain properties, as some landlords prefer alternative contractual arrangements.

The Civil Code Lease: Flexibility Under Strict Conditions

Leases governed by the Civil Code are not subject to the provisions of the 1989 law. They are mainly used:

• for secondary residences,
• or when the tenant is a legal entity, for example in the case of company-leased accommodation rented directly by the employer.

This framework allows greater contractual freedom, particularly regarding lease duration, termination terms, and the amount of the security deposit. This flexibility explains why some landlords increasingly offer it, especially for international profiles.

However, a Civil Code lease is not intended to apply to a primary residence personally occupied by an employee. Its use must therefore always be carefully assessed, based on the actual situation and the chosen contractual structure.

Civil Code Lease and Housing Allowance: A Frequent Point of Attention in International Mobility

In many international assignments, employees arrive in France with a housing allowance provided by their employer. In a constrained real estate market, this situation may lead some landlords to propose — or even make access to the property conditional upon — a Civil Code lease.

It is important to remember that receiving a housing allowance does not, in itself, change the legal nature of the occupancy. The actual use of the property remains a central element of the assessment.

In practice, HR teams and employees are sometimes faced with complex trade-offs: accepting the contractual framework proposed by the landlord or giving up a suitable property in a context where alternatives are limited. These situations do not stem from a deliberate attempt to circumvent the legal framework, nor from a matter of convenience, but rather from market realities that must be addressed with method and caution.

The objective is therefore neither to systematically rule out Civil Code leases nor to accept them without analysis, but to clearly qualify the situation, understand the implications, and secure the contractual conditions as much as possible, in compliance with the applicable framework.

In Practice: A Lease Choice That Impacts the Assignment

The selected contractual framework has concrete consequences:

• flexibility or rigidity in the event of an early termination of the assignment,
• level of upfront costs,
• exit conditions,
• long-term security for the employee and their family.

For companies, an unsuitable lease can become a source of tension, unexpected costs, or operational complexity, directly affecting the quality of onboarding and the employee’s performance.

The Management Mobility Consulting Approach: Analysis, Responsibility, and Risk Mitigation

At Management Mobility Consulting, housing is never treated as a purely real estate matter. Reviewing the contractual framework is an integral part of international mobility support.

The objective is to:

• analyze each situation on a case-by-case basis,
• verify the consistency between the proposed lease type and the actual use of the property,
• identify contractual points of attention,
• support decision-making when market constraints are strong,
• and secure the relocation journey in compliance with the applicable framework and the interests of both the employee and the employer.

This pragmatic and responsible approach helps reconcile compliance, operational feasibility, and access to housing—without dogmatic positions or unnecessary risk-taking—in a sometimes-imbalanced real estate environment.