Commercial leases: what the law of 26 May 2026 changes for landlords and tenants

Enacted on 26 May 2026, the economic simplification law alters several essential rules of the landlord-tenant relationship. Its stated aim is to rebalance that relationship in the tenant’s favour without removing the landlord’s protections. Entry into force is staggered measure by measure.

Quarterly rent may be paid monthly

Subject to the conditions laid down by the law, a tenant may ask to pay rent monthly provided there are no undisputed arrears. The landlord may neither object nor provide otherwise by contract. The measure has applied since 28 May 2026, including to leases already running (article L. 145-32-1 of the Commercial Code).

Guarantees capped at three months’ rent in aggregate

The deposit and all guarantees required by the landlord may not exceed one quarter’s rent where the premises qualify for monthly payment. Those sums bear no interest for the tenant. Applicable to leases concluded or renewed since 26 May 2026 (article L. 145-40).

Strict deadlines for returning guarantees

The deposit must be returned within three months of the keys being handed back. For other security given to the landlord — on-demand guarantees, suretyships — the period is six months. The rule applies where the keys are handed back on or after 26 August 2026 (article L. 145-40, paragraph 4).

Sale of the premises: the new landlord inherits the obligations

Where the let premises are sold or transferred, it is the buyer who must return the deposit to the tenant. The former landlord has six months to release the other security given. Applicable to transfers occurring on or after 26 August 2026 (article L. 145-40, paragraph 3).

The “tunnel” indexation clause, a lever for the landlord

The landlord may now cap, in the same proportions upwards and downwards, the annual variation of the commercial rent index taken into account for rent review. Applicable since 28 May 2026 (article L. 145-38-1).

Forfeiture clause: stricter conditions for the tenant

To obtain time to pay and suspend the forfeiture clause, the tenant must show they are able to clear the debt and have resumed paying the current rent before the first hearing. The judge may suspend the clause for as long as termination has not been finally pronounced. Applicable since 28 May 2026 (article 63 of the law of 26 May 2026).

What to anticipate, on each side

For landlords: reread current leases and check the level of guarantees required, adapt indexation and guarantee clauses to the new ceilings, anticipate the new return deadlines, update lease precedents.

For tenants: assert the right to monthly rent, check that the deposit required complies, secure the return of sums paid.

Why have your leases audited

The Pinel law, ordinances, simplification laws: the legal framework for commercial leases has grown steadily more complex since 2014. A forgotten or misapplied clause is expensive. A lease not renewed in time loses the rent cap and exposes the parties to revaluation at market rent. A misapplied indexation clause produces lost reviews or arrears accumulated over several years. An exceeded guarantee ceiling means sums to repay, interest due and avoidable litigation.

An audit secures renewals and checks that clauses are being applied properly — before those risks materialise.

Download the eleven-page summary (PDF, in French)

This article sets out the law as it stood at the date of publication and does not constitute legal advice. Every situation calls for individual examination: let us take thirty minutes to check yours.