Roommate: What are the points to remember?
Cohabitation has existed for many years now. This is the process of renting a single property to multiple tenants at the same time. The tenants themselves are free to set terms within themselves on how they'll go about living together (i.e. how the rent is divided, who's responsible for maintenance, etc.), but for the owner/landlord, all tenants are seen as equal parties to the lease.
What is colocation?
Technically, cohabitation refers to when multiple people live in the same place at the same time. This can apply to families, married couples, and roommates. In real estate terms, however, cohabitation mostly refers to when a single property is leased out to multiple tenants at the same time.
The multiple tenants refer to each other as roommates, commonly sharing responsibilities of the tenant. It's up to them on how to divide their responsibilities but to the owner/landlord, they're all considered equal. No one tenant is above the other and receives the utmost priority and more benefits. They all share the same rights and responsibilities too.
How to insure a shared property?
Upon signing the lease and moving into the property, tenants are required to take out home insurance to cover rental risks. These roommates can choose to insure themselves collectively or individually.
The certificate of insurance must be given to the owner annually. Otherwise, the owner/landlord reserves the right to terminate the lease.
Can I receive financial aid by being a roommate?
To qualify for APL, the rental property must have a minimum surface area of 16 m² for 2 roommates. For each additional roommate, an additional 9 m² is required.
Regardless of the type of lease they've signed, any individual tenant can obtain housing assistance for the share of rent they owe, especially if they meet the conditions to be entitled to it.
Who pays the housing tax?
- Either in the form of provisions for charges, with an annual adjustment.
- Either in the form of a lump sum to be paid simultaneously with the rent.
The housing tax is usually established in the name of just one of the tenants. The roommates can reach their own agreement on how to divide the payment of this tax amongst themselves. However, only the tenant who appears on the tax notice will have to pay it.
What are The Advantages and Disadvantages of Cohabitation?
As with any other approach to real estate and rent, cohabitation comes with its own sets of advantages and disadvantages for the tenant.
The advantages and disadvantages of roommates
The Advantages
- Save money on rent and utilities
- Sharing household chores
- Rent bigger spaces (especially when you are a student)
- Eligibility for tax exemption
- The solidarity clause ensures that rent is paid
- Opportunity to network and get to know different people
The Disadvantages
- You can't control who your roommates will be
- You have to adapt to a new roommate every time someone leaves
- Noise can be disturbing
Important points
- The custom is to justify an income greater than 3 times the price of rent (either the guarantor or the tenant himself).
- The guarantor may be a family member, an employer or a specialized company.
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- Since the Boutin law, only students and apprentices can attach a deposit. The cumulation between the two guarantees is prohibited, unless the tenant is a student or apprentice (art. 22-1 of the law of 6.7.89).
- In case of student/employee flatshare. The Boutin law prohibits the combination of insurance and guarantors. Therefore, in this case, the employee must, on his own, justify the solvency required by your contract.
- Unfortunately fixed-term contracts are not accepted under the contract.
The owner/landlord has 2 options on how to establish the lease: have all the roommates sign a single lease or have each roommate sign a lease individually.
Single Lease
- The single lease has the advantage of being able to contain a solidarity and indivisibility clause between co-tenants, allowing the owner/landlord to claim any unpaid rent of one tenant from the other tenants.
- If the tenant leaves without giving proper notice, they will remain a roommate and are still required to pay the rent. The departure of one tenant does not terminate the contract that continues with the remaining tenants. The owner cannot for their departure.
- It's also important to note that the solidarity and indivisibility clause does not apply to co-tenancy made under the mobility lease. The ELAN Law of November 23, 2018, expressly excluded the application to the mobility lease of V of Article 8-1 of the Law of July 6, 1989, which establishes the principle of solidarity between roommates.
Multi-Lease Flatshare
- In the case that each tenant has an individual lease independent of the others, they are also free to decide whether or not to use the model contract.
- Each roommate is liable for their own share of the rent.
- The departure of one of the roommates terminates their own contract and therefore severs all commitments to the other roommates at the end of the notice.
- Each guarantor is only committed to a share of the rent for the tenant they have partnered with. They are not liable for whatever financial problems the other tenants may have.
What is the legal framework for a flatshare?
- The property is the principal residence of all tenants.
- The rules of shared accommodations are the same for furnished and empty flatshares.
- Contracts must be signed by all tenants.
- Payments can be made through provisions or through a lump sum.
- Each tenant can depart the property on their own time and terms.
Certain standards also apply in order to legally constitute a roommate:
- In the case of an individual lease, each tenant must have a private space of at least 14 m² and 33 cubic meters.
- In the case of a collective lease, the surface of the property must be at least 9 m² for each tenant.
- It is necessary to add 9 m² per additional tenant for the single lease.
- The maximum number of tenants occupying a single rental property is 8 persons (married couples can sometimes count as one tenant).
Each prospective tenant must also submit a rental file when applying for the rental. Decree No. 2015-1437 defines the list of supporting documents to be provided, including proof of income.
The owner/landlord, for their part, must obtain a rental permit according to Decree No. 2016-1790.
- Cohabitation (in real estate terms) refers to when a single rental property is leased out to multiple tenants at the same time.
- The tenants (roommates) can either sign a single lease altogether or establish their own individual leases with the owner/landlord.
- Taking out home insurance in cohabited properties is mandatory.
- It is possible for co-tenants to apply for housing assistance from the CAF or the MSA.
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Posted on 31/10/2022 by
Andy LECUYER
