The VISALE facility should allow some tenants to find furnished or unfurnished accommodation more easily, and the Action Logement bond will be especially helpful when signing a rental agreement. But will this device persuade landlords to rent out properties to tenants without security, while the risks covered are capped and time-limited? Let’s look at the detail of this rental-risk guarantee.
Which tenants can benefit from an Action Logement bond?
The eligible tenant categories are:
- Workers over 30 years of age in insecure employment (especially temporary, fixed-term, and subsidised employment contracts, apprentices, and those in the trial-period phase of a permanent contract) who are moving into a rented property within the first three months of employment.
- Workers under 30 years of age, regardless of their type of employment contract, who are moving into a rented property within their first 12 months of employment.
- At-risk families moving into private accommodation with an approved rental agency acting as an intermediary.
Any employment contract must have a minimum duration of one month. If it is for a shorter period, then the employed person must prove he has worked for at least one month during the three months preceding his application.
Warning: eligible tenants are subject to a maximum guarantee limit of 50%, which means their total rent and charges must not constitute more than half of their earned income. Therefore unemployed people cannot take advantage of this facility.
The VISALE facility for furnished and unfurnished housing
The rented accommodation can be either furnished or unfurnished, but must be the principal residence of the tenant and involve a private-sector landlord who is a physical person or a legal entity.
The total rent including charges must not exceed:
- € 1,500 for homes located in Paris
- € 1,300 in other areas
The rental agreement must be signed within the validity period shown on the tenant’s visa, must comply with the provisions of the Act of 6 July 1989, and must contain a termination clause in respect of non-payment of rent. In the case of shared accommodation involving more than two tenants, the rental agreement must be personalised to identify each co-tenant.
Note also that this facility does not apply to a rental agreement arranged between members of the same family.
A capped and time-limited guarantee
The VISALE facility will cover all unpaid rent and charges during the first three years of the tenancy. Please note the VISALE facility cannot be used to fund any damage or disrepair occurring during the tenancy.
In the case of rent arrears, the tenant will remain liable to repay the debt to Action Logement. As a result, Action Logement will seek to make a recovery directly from the tenant, and may eventually pursue the termination of the rental agreement.
What does the Action Logement procedure entail?
Before signing a rental agreement, the prospective tenant must apply for a VISALE guarantee online at www.visale.fr In principle, the process takes 48 hours to complete. Once an application has been granted, the tenant must then inform his future landlord. He in turn must visit www.visale.fr to register and become acquainted with the necessary visa requirements to secure a rental guarantee.
Once a VISALE guarantee has been obtained, then a furnished or unfurnished rental agreement can be signed and concluded between landlord and tenant.
Minister for Housing and Sustainable Habitat Emmanuelle Cosse has announced that discussions are in progress with Action Logement to expand the scope of the VISALE rent guarantee scheme, especially with regard to the unemployed and young people in particular.