“Unpaid Rent: Precautions for Landlords and Tenants After Winter Eviction Ban”

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Published on
Saturday, April 15, 2023 9:00 a.m.
by the Meilleurtaux editorial team

During the winter break, between November 1 and March 31 of the following year, the eviction of a tenant who accumulates unpaid rent is prohibited. Since April 1, eviction procedures can resume. In a tense social context, the subject worries landlords and tenants and mobilizes professionals.

Unpaid rent, a subject that affects a very wide audience

In recent months, the issue of unpaid bills has become a major issue.

A study by the Social Union for Housing (USH) dating from December 2022 reveals that “around 50% of social landlords deplore a greater increase of 10% in the number of tenants of HLM housing accumulating at least three months of unpaid bills “.

Contrary to popular belief, the owners of their main residence are not spared due to galloping inflation.

Christophe Demerson the president of the National Union of Property Owners (UNPI), declares that “many of them are no longer able to pay their charges”.

Christophe Demerson

Older people, especially widows, in the grip of serious economic difficulties, often have no choice but to put their property in life.

And that’s not all. Some trustees are unpaid in condominiums. Insurers denounce an increase in the number of condominiums that no longer manage to pay insurance premiums covering the common areas.

Faced with social tensions and the continuation of inflation, associations defending the right to housing fear an explosion of evictions. Indeed, the precariousness of households is worsening.

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Landlords and tenants: precautions to avoid unpaid rent

To secure the payment of rent, landlords must take several precautions before signing the lease.

• Besides the essential verification of the sources of income of the candidate for rentalthe owner may require a bond or a security deposit.
• Another solution is to take out an insurance contract to cover yourself in the event of unpaid rentespecially for those who rely on this money to repay a mortgage.
• Alternatively, if the tenant receives housing assistance, the Departmental Housing Information Agency (ADIL) reminds that the landlord can apply the principle of third-party payment. In concrete terms, the Family Allowance Fund (CAF) pays the allowance directly to the lessor, who deducts it from the amount of the rent, reducing the loss of earnings for the owner.
• As for the tenant who respects the conditions of age and income, he can request the Visale guarantee or the free deposit provided by Action Logement. The Housing Solidarity Fund (FSL) can also help tenants in great difficulty.

Finally, tenants must have the reflex to contact the advisers of prevention and advice organisations, without waiting for the situation to become too serious (receipt of a formal notice to pay).

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The steps to follow to resolve a situation of unpaid rent

From the first unpaid rent, the lessor has an interest in reminding the lessee of his obligations and endeavoring to reach an amicable solution.

According to Adil, “a rental debt settlement plan, spread over a few months, preserves the tenant’s right to housing assistance”.

Adil

Important Failing to find an amicable agreement, the lessor has the possibility of seizing a conciliator or a mediator.

From the first legal steps, experts recommend being accompanied by a lawyer in order to limit the loss of time and money. The consequences of legal proceedings can be very different:

• payment order issued by a bailiff;
• implementation of a recovery procedure (seizure of movable property, salary, bank account, etc.);
• termination of the lease and eviction of the tenant, but exclusively after delivery of an enforceable title.

Expulsion is the last resort against a bad payer. But it is not systematic. Moreover, since the health crisis, they have fallen sharply.

According to data from the Ministry of Housing, “16,700 were executed by court order in 2019, before falling to 8,000 in 2020, then rising to 12,000 in 2021”.

The figures for 2022 are not yet known. They could be moderate, because of the instruction given to the prefects to show themselves more flexible and to suspend evictions pending a proposal for rehousing or temporary accommodation.

But “the situation could change in 2023”, fears the Abbé Pierre foundation, especially because of the “Antisquat” bill.

ImportantIf adopted, this text provides for tougher penalties against squatters and an acceleration of procedures against bad payers.

In the meantime, the Ministry of Housing is planning a meeting of all the actors involved in the National Observatory of Unpaid Payments during the month of April.