Eviction compensation.
Compensation owed to the tenant when renewal is refused, Article L.145-14 of the French Commercial Code.
What the compensation really covers.
When a landlord refuses to renew a commercial lease without serious and legitimate grounds, they owe the tenant eviction compensation (Article L.145-14 of the French Commercial Code). At its core: the value of the business if the customer base is lost, or that of the leasehold right if the activity can be moved. Added to this are the ancillary compensations: removal, relocation, transfer duties on a replacement business, business disruption, any redundancies.
Each item is quantified using recognised methods: industry rules of thumb, turnover and EBITDA, a capitalised rent differential for the leasehold right. Our reports are built for this discussion: in negotiation, in mediation or before the judge.
The full definition, in the glossaryTourist residences
A single lease, a single operator, a disputed business value: eviction in a tourist residence follows specific comparables that we document, including sales of entire residences.
Hotels
A hotel business is valued on its takings and per room: the compensation can far exceed the value of the building. Quantified using both approaches, cross-checked.
LMNP & atypical leases
Furnished landlords, short-term leases requalified as commercial leases, mixed-use premises: the very existence of the right to compensation is debated before its amount. We quantify both scenarios.
Landlords and tenants alike.
We act for the landlord who wants to measure the real cost of a notice before serving it, as well as for the evicted tenant who has to defend the value of their business. Assessments prepared for adversarial debate.
What we are really asked.
The main compensation first: the value of the business if the customer base is lost (methods based on turnover, EBITDA or industry rules of thumb), or the value of the leasehold right if the activity can be moved (capitalised rent differential). Then the ancillary items: removal, relocation, transfer duties, business disruption. All at the date closest to the actual eviction.
It is a specific type of dispute: a single operator, a lease covering dozens of units, a business whose value is debated through rents and occupancy rates. Useful comparables are rare (sales of comparable operations, recent rulings), and that is precisely what the valuation report brings to the debate.
Only in specific cases: serious and legitimate grounds against the tenant, an unsanitary or dangerous building, or the exercise of the right to withdraw within fifteen days of the final decision setting the compensation. Outside these cases, refusing renewal means paying compensation: hence the value of knowing the amount before serving notice.
The commercial lease regime only applies to commercial leases: a furnished landlord is in principle not entitled to it, unless a commercial lease has been granted to an operator (serviced residence, tourist residence). The question of how the lease is classified is settled before that of the amount: our reports address both.
A notice to cost, an eviction to defend?
Describe your property and your situation, in complete confidence. The valuer who replies is the one who will sign the report.
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