Published on: 31 July 2023
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Visale Guarantee: a change in conditions planned for 2023!
The French government has promised to double the number of beneficiaries of the Visale Guarantee, a free deposit scheme for tenants. To achieve this, it plans to evolve the eligibility criteria for this guarantee managed by Action Logement. So, what new features are planned for 2023 with the Visale Guarantee? We explain.
What is the Visale Guarantee? Reminder
The Visale Guarantee (VISA pour le Logement et l'Emploi) is a free deposit managed by Action Logement. Created in 2016, this scheme enables people without the necessary guarantees to gain easier access to housing when renting.
It's a guarantee contract similar to a guarantee for unpaid rent (GLI). Action Logement acts as guarantor for eligible tenants, and covers landlords in the event of unpaid rent or damage. It compensates the landlord directly, before obtaining reimbursement from the tenant at fault.
What are the conditions of eligibility for the Visale Guarantee?
Conditions for the tenant
In order to obtain the Visale Guarantee, you must meet one of the following criteria:
- be under 30 years of age, regardless of employment status;
- be a student under 30;
- be over 30 and have been working for a private-sector company for less than 6 months (and whose trial period has not ended on a permanent contract);
- be over 30 and undergoing a professional transfer, even if the CDI trial period has already ended;
- be an employee with a promise of employment, and apply for the Visale Guarantee within a maximum of 3 months between signing the promise and taking up employment.
At least one tenant in the household must meet one of these conditions for the entire household to be eligible for the Visale Guarantee.
The landlord must also adhere to the Visale scheme thanks to the tenant's certified and valid visa. Regarding the property rented empty or furnished, a few criteria must be met for the Visale Guarantee to apply:
- the property is the tenant's principal residence;
- the property is located in France;
- it complies with the law, and a lease has been drawn up and signed;
- it belongs to a private landlord, whether an individual or a legal entity.
Rent and lease conditions
Rent including charges must be no more than €1,500 for rentals in Paris and €1,300 for the rest of France.
Concerning the rental lease, it must not be signed between members of the same family, and a termination clause in case of unpaid rent must be added. In the case of shared tenancies, the lease must be individualized and no other security deposit may be requested. Finally, the Visale Guarantee must be activated within the validity period of the visa certified by Action Logement.
What are the changes to the Visale Guarantee in 2023?
On Monday June 5, 2023, Prime Minister Élisabeth Borne declared an extension of the Visale Guarantee for young tenants and modest wage earners. Beneficiaries of this free guarantee will increase from 900,000 to 2.1 million. Currently mainly reserved for young people under 30, who account for 91% of applications, eligibility for the Visale Guarantee is soon to be extended to seasonal workers and the self-employed.
Private-sector employees with a net income of less than 1,500 euros, private-sector employees changing jobs and holders of a mobility lease will also soon be eligible for the Visale scheme. The guarantee covers up to 36 months' rent and service charges for private rental housing, and 9 months' rent and service charges for social housing.
Visale Guarantee: what you need to know
Discussions are therefore underway with Action Logement to raise the eligibility age or income criteria, so that as many people as possible can benefit from the Visale guarantee. This free guarantee promotes access to housing. It enables young people and low-income households to obtain rental accommodation by reassuring landlords, in a bid to combat the housing crisis in France.
Can a landlord refuse Visale?
It is possible to refuse a Visale tenant by rejecting the application directly, without having to justify the decision.
When can I renew my Visale Guarantee?
The Visale Guarantee is valid for 36 months and is non-renewable. The duration can be set at 12 months (renewable twice) for furnished rentals.