Tips for Dealing with Unpaid Rent: Advice for Owners and Tenants

Owner side

Before initiating legal proceedings, it may be preferable to contact your tenant directly to initiate a dialogue and understand why there is a non-payment. These exchanges can lead to the establishment of a clearance plan. It is an amicable, written agreement which provides for the repayment of the rental debt to be spread over a few months. The lessor can also protect himself by taking out unpaid rent insurance which protects the owner by compensating the owner for the sums owed by the tenant.

In more complicated cases, Sylvain Grataloup, president of the National Union of Real Estate Owners, explains that to obtain payment of his arrears, “the lessor must first have an order to pay issued by a bailiff”. The bailiff warns the tenant that in accordance with his lease, he has six weeks to be able to pay his entire arrears. “And that if the rent and charges are not paid in full, the lease will be automatically terminated in accordance with the termination clause,” he adds.

If during these six weeks, the tenant has paid what was demanded of him, the lease is not terminated. “But if, during the six weeks, the tenant has not paid, the lessor must then refer the matter to the judge. The judge will no longer order the tenant to pay rent, but occupancy compensation, which is generally equivalent to the amount of the rent”, explains Sylvain Grataloup. “The judge will grant deadlines to the tenant so that he can pay, depending on his financial situation and his good faith. The resolution clause will then be suspended. And if at the end of this deadline, the tenant has complied its payment, the lease continues”. But if the tenant does not pay what he owes then “the lease is definitively terminated and the judge will order the eviction”.

Tenant side

As for owners, the first solution is dialogue. It is important to contact the landlord as quickly as possible to explain the situation and seek solutions to avoid termination of the lease and eviction. Rent is considered unpaid when payment is not made on the date indicated in the rental contract.

Among these solutions, it is therefore possible to amicably define a payment schedule directly with the lessor. But it is also possible to call on a legal conciliator to find this solution which will put an end to the unpaid situation. In the event that the owner has initiated a procedure to terminate the rental lease, the tenant can request a payment deadline from the judge.

In terms of aid, the tenant can apply for the Housing Solidarity Fund (FSL). “It is aid in the form of a loan” paid directly to the owner, explains the Departmental Housing Information Agency (ADIL 31). More generally, there are also numerous housing benefits (APL, ALF or ALS) that must be requested from the Family Allowance Fund (CAF). On the other hand, this aid is suspended in the event of unpaid rent.

The “SOS unpaid rent” system, set up by ADIL, can offer support adapted to each situation. The service has a toll-free number to contact: 0805 16 00 75.