Unpaid rents: a new measure in favour of landlords

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Unpaid rents: a new measure in favour of landlords

On November 29, 2022, the National Assembly of France adopted a new measure in favor of property owners/landlords to take immediate action in unpaid rent cases. This new measure allows them to terminate leases as soon as possible if rent hasn't been paid. It also helps diffuse the situation before it ever reaches the local courts. Not to mention avoid abuse of tenants and sets a precedent for an anti-squatting law. 

In light of this new measure, it pays to know what landlords can do to avoid or handle unpaid rent.

How to avoid unpaid bills?

As a landlord, you can avoid unpaid rent even before you sign the lease with a new tenant. It's all about taking into consideration the prospective tenant's financial situation and his ability to pay rent every month. Here are a few measures you can take:
  • Always analyze the prospective tenant's rental file
  • Ask for Proof of Income/ Proof of Employment
  • Ask for a Security Deposit
  • If the prospective tenant claims they don't need to pay a deposit, ask for proof that their income is at least 3 times higher than the amount of rent
  • Use a Guarantor or hire a Guarantor Company (i.e. garantme.fr)
  • Subscribe to Unpaid Rent Insurance or “Unpaid Rent Guarantee (GLI)”
  • Include a clause that will allow termination of the lease in case of unpaid rent.

What are the solutions to help tenants? 

Landlords ought to know that cases of unpaid rent aren't always intentional and can happen abruptly. There are many possible reasons why your tenant can't pay the rent on time or even at all. And in such situations, you can offer a multitude of solutions to the tenant. Helping fix this problem will also benefit you, after all. These solutions include:
  • Advise them to seek financial assistance from organizations such as  Caisse d'Allocations Familiales (CAF). 
  • Call on The FSL (the Housing Solidarity Fund)
  • Set a New Due Date for When The Tenant Can Pay The Unpaid Rent

What are the owner's recourses in case of non-payment?

As a first step, it is important to send a notice of expiry to the tenant before going to court. 

The goal is to create dialogue with the tenant, to understand how this could have happened and to potentially find an amicable solution. It could be temporary, so finding an arrangement between the two parties (example: payment delay) would be the most appropriate solution. 

If it becomes abusive, unreasoned and permanent, here are the solutions available to you: 
  • Appeal to the persons who have vouched for them
  • Call on a guarantor body, in order to set up a file and subscribe to an unpaid rent insurance or "Unpaid Rent Guarantee (GLI)"
  • Call Action Logement if the tenant has opted for the Visale guarantee
  • Call on a bailiff
  • Appeal to the courts, and take the tenant to court before a district court (excluding winter break)
Ce qu’il faut retenir :
At A1 Real Estate, we see that owners are reluctant to rent their apartment due to certain abuses and far too long steps. 

(Editor's note: Following a command to leave the dwelling issued by the judge of the district court, the tenant has a legal period of 2 months to leave the premises. He also has one month to appeal the judgment. But before going before the judge, the months can be long)

A1 Real Estate takes into account all the provisions, and guarantees, in order to carefully choose the best files and profiles. These files are eligible with surety organizations, rental guarantors such as our partner garantme.fr, in order to eliminate any risk of non-payment.

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