What About Housing Without a Guarantor in France?
– Definition of a guarantor
– The loca-pass guarantee
– The Visale guarantee
– Housing without a guarantor: student rental guarantee
Housing: definition of a guarantor
First, having a guarantor to rent an apartment is not a legal obligation. The problem is landlords almost systematically ask for one because it is an additional guarantee.
The guarantor is the person who commits to the accommodation owner to pay the rent and the rental charges in case the tenant default.
It does not matter if the guarantor is a family member, a friend… or a legal entity (a company, a bank…). The only requirement is that he/she is solvent, i.e. financially capable of taking on this responsibility.
To specify the nature and extent of his commitment, the guarantor must sign a contract of guarantee with the owner (under private seal or drawn up by a notary).
Thus, if the guarantor’s commitment is for an indefinite period, he or she commits for the entire duration of the lease but can terminate it at the end.
Housing without a guarantor: the loca-pass guarantee (discontinued)
Loca-pass guarantee concerns employees of private sector companies, young people under 30 years of age, seasonal workers and transferred employees.
Note: the Loca–Pass guarantee has been no longer granted by Action Logement since July 11, 2019.
The rented property must be the primary residence of the tenant, who does not have a guarantor and must be the subject of an agreement entitling the tenant to personalized housing assistance.
This guarantee is valid for 3 years, paying 9 months of rent and charges (after deduction of housing subsidies).
If the owner activates this guarantee, the tenant must reimburse the sums advanced over 6 years and without interest.
Housing without a guarantor: Visale guarantee
The Visale guarantee is granted to sure tenants in the private rental sector. In the event of payment difficulties, Action Logement takes over the tenant’s responsibilities for the entire duration of the lease, up to a limit of 36 unpaid rent and rental charges in private rental housing and 9 due rents and rental payments in social rental housing (or similar housing rented to a student).
The Visale guarantee concerns:
– People under 31 years of age (regardless of their employment status, including students and work-study students).
– People over 31 if they meet one of the following conditions:
◦ be an employee of a private sector or private sector agricultural company and justify a net monthly salary less than or equal to €1,500;
◦ be an employee of the private sector or private agricultural sector in professional mobility: ‘CDI’ in a trial period or ‘CDD’ for less than 6 months, in the promise of hiring or transfer.
– Persons holding a mobility lease.
– People housed by a rental intermediation organization.
The Visale guarantee replaces the rental risk guarantee, which has not been offered since 2016. The last renewals ended on December 31, 2017. Since January 1, 2018, no landlord can benefit from the rental risk guarantee.
Housing without a guarantor: student rental deposit
As its name suggests, this state guarantee was created for students looking for housing without a guarantor.
It concerns all housing, regarding the criteria of decent housing (studio, large apartment…).
The student must contribute 1.5% of the rent to benefit from it.
In case of default, the managers of this guarantee pay the owner the amount of the unpaid rent and charges and establish with the student tenant a schedule of the sums advanced on his behalf.
Students who wish to change their accommodation while continuing to benefit from this guarantee must be up to date with their debts (contributions and reimbursement of unpaid rent).
Good to know: in the case of a shared apartment, without a solidarity clause, each roommate must apply for a student rental guarantee.