Long term rental or how to find a creditworthy tenant?
There is no doubt that the economic crisis is still present, which is not without impact on the rental market: the number of non-payments of rent has increased by 30% over the last 5 years!
Besides, do you know that the “ALUR” law adopted last year prohibits charging penalties for late payment?
So how can you find a creditworthy tenant, knowing that there is a list of documents you cannot claim from the potential tenant?
The precise list will soon be subject to a decree, including:
– Bank statements
– « Vitale card »
– Marriage contract
So if you want to select a “good record”, you will have to ask the candidates for their:
– Identity cards
– Employment contract
– Pay slips
– Last tax notice
Of course it’s better to request the original documents because today, with all the “magical” services the Internet gives us, it is quite easy to cheat…
So don’t hesitate to check the authenticity of the tax notice (this is the best proof of actual revenues) thanks to SECAVIS service created by the government: https://cfsmsp.impots.gouv.fr/secavis/.
This is absolutely free, just really unfortunate that few lessors know it.
It would be reasonable to ask for a guarantor or joint surety. However, it does not protect you in a long term because if the financial situation of your tenant or its guarantor changes, you will have to deal with it and may not be able to get anything!
Also remember to take out insurance for unpaid rent. Such insurance has a cost (from 2 to 4% of the rents), but the day you need it, you’ll be glad having subscribed! And of course you can deduct the cost of the insurance from your property income.
Finally be aware that it is very interesting to rent to students! Firstly because they are very demanding in some cities, but also because students under 28, who have no guarantor, are eligible for Caution Locative Etudiante (CLE) – a very interesting public guarantee.
And there is still a solution: finding tenants… civil servants… deputies preferably 😉