Renting in Monaco: What You Need to Know

Renting a property in Monaco is never a casual decision. It’s often the most practical way to settle in the Principality without immediately committing to a real estate purchase. Whether for personal reasons, a professional relocation, or a temporary solution, renting remains the most direct route to establishing a foothold in Monaco without locking in long-term capital. That said, the rental market here is strict, highly regulated, and leaves little room for improvisation.


Special legal frameworks

Certain buildings are subject to protective housing laws that impose significant restrictions on how they can be rented. These rules mostly apply to residential buildings constructed before 1 September 1947. But not exclusively: under Law No. 1.508 of 2 August 2021, even some newly rebuilt properties may remain subject to older legal constraints, depending on the nature of the reconstruction. Only the Direction de l’Habitat (Housing Authority) can provide a definitive legal classification. Knowing the regulatory status of a property is essential before committing.


Professional leases

Since Law No. 1.433 of 8 November 2016, premises rented for professional use are governed by a distinct framework. These leases must be signed for a minimum of five years, automatically renewable unless terminated with six months' notice. The tenant may exit the lease after one year, also with six months' notice. This framework provides a degree of contractual stability while maintaining flexibility for evolving business needs. 


Entering the market: compliance and financial checks

Before you can rent, you’ll need to meet several eligibility conditions, such as: open a bank account in Monaco, demonstrate sufficient personal funds (the commonly accepted minimum is €500,000), and submit documentation that complies with AML standards, as enforced by the Monaco Financial Security Association (AMSF). These requirements ensure that future residents are financially sound, transparent, and aligned with the Principality’s regulatory environment.


Minimum housing standards and suitability

To obtain a residence card, the rented property must be proportionate to the number of occupants. The configuration matters just as much as the surface area: for example, a family of four cannot expect to be granted residency for a studio apartment. This rule is strict and non-negotiable.


Tenant obligations

Articles 1554 and following of the Monegasque Civil Code govern landlord–tenant relationships. As a tenant, you are required to pay rent and charges on time, use the property in line with its agreed purpose, refrain from subletting unless the lease explicitly allows it, maintain the property in good condition, and hold valid multi-risk home insurance from a locally recognised provider. A security deposit equivalent to three months’ rent and charges is typically required, and refunded within two months after the end of the lease, minus any costs for repairs or damages.


Inventory and condition report

Although not legally mandatory, a detailed inventory and condition report at check-in is strongly advised. Without it, the property is presumed to have been delivered in good condition — and you’ll be liable for any damage. The report may be carried out by the agency (acting on behalf of the landlord), a bailiff, or an independent firm. In all cases, you must be present or represented. The report must be signed by both parties.


Landlord obligations

Landlords are legally required to deliver the property, maintain it in suitable condition for its intended use, and guarantee peaceful enjoyment throughout the lease. However, private leases in Monaco often include expanded maintenance obligations for the tenant — well beyond legal norms. For instance, it is common for the tenant to be required to repaint the entire apartment upon departure.


Lease duration and renewals

Most residential leases in Monaco are signed for one year, with automatic renewal unless terminated. Notice must be given at least three months in advance, by either party. For landlords, this flexibility allows annual rent reassessment, potential sale of the property, or repositioning of the asset. For tenants, it creates a degree of instability — but also a chance to relocate or renegotiate more quickly.


Rent setting and indexation

Outside of protected housing, rents are freely negotiated. Leases almost always include an annual revision clause, usually indexed to either the BT01 or ICC (official construction or consumer price indices). A minimum annual increase of 3% is commonly applied, even if the index is lower. Many leases include a clause that only allows upward revision — downward adjustments are rare or excluded altogether.


A landlord-driven market

The Monaco rental market clearly favours landlords. The average gross yield for residential assets is relatively low (around 1.5% to 2.5%), which means there’s little incentive to renovate or upgrade. Most high-quality rentals come from strategic divestments, owners moving abroad, or family estates managing long-held assets. This is not a market chasing returns — it’s a market preserving value.


Mixed-use properties

Some units are listed as “mixed-use”, meaning they can serve as both a residence and a base for a professional activity (such as liberal or administrative services). However, using a property in this way requires approval from the relevant authorities, compliance with the building’s co-ownership rules (including signage and permitted uses), and respect of the building’s maximum activity quota (to avoid falling under ERP classification with its fire safety and compliance obligations). Just because the ad says “mixed-use” doesn’t mean it’s guaranteed — check everything.


Commitment starts with the reservation

Once you decide to proceed, the financial commitment is immediate. Expect to pay one quarter of rent and charges in advance, a prorated share depending on the move-in date, a security deposit of three months' rent and charges, agency fees (approx. 10% excl. VAT of annual rent), registration duties (1% of annual rent × lease duration), as well as (optional but recommended) inventory fees. If you withdraw after reservation, some or all of the sums paid may be retained by the agency and landlord. That’s standard practice.


Short-term and holiday lets

There is currently no regulation prohibiting short-term furnished rentals in Monaco. In theory, they are possible. In practice, they are rare. Few landlords are willing to deal with the operational burden of short stays, especially for high-value assets. The tax implications — including potential VAT exposure — add nother layer of disincentive. Most online listings for “Monaco” actually refer to Beausoleil or Roquebrune, just across the border. As for tenants tempted to sublet during major events like the Grand Prix: this is almost always forbidden by the lease or by building regulations. Public housing units are strictly non-sublet.