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You can take bikes on the local trains, btw (maybe certain hours only). I took mine from Nice to Menton.
Check out the Monaco rental places. The guys I met claimed to get their fancy bikes for a week for something like €150. Although they haggled and it was slightly out of season so I guess it will be more in August.
I got a Cervelo R5 one day and then an Aspero the next from Cafe du Cycliste although there is also Service Course and they have great looking bikes too.
I don't know what bike shop those other guys used in Monaco but I remember googling once I got home and there were a few to choose from.