Visale guarantee: what it provides for landlords
The Visale guarantee protects landlords by taking over for unpaid rent and, subject to conditions, certain damage, then Action Logement seeks reimbursement from the tenant for the sums paid.
The Visale guarantee for landlords is a free rental guarantee provided by Action Logement, provided that the tenant obtained their visa before signing the tenancy agreement and that the landlord accepts the guarantee deed. For a property let on a year-round basis, it allows the landlord to be paid first by Action Logement in the event of unpaid rent or, within certain limits, rental damage when the tenant permanently leaves the property; Action Logement then seeks reimbursement from the tenant for the sums paid.
Cabinet Soudey offers properties to rent year-round on the Alabaster Coast, and year-round property management through its sister company PCG Gestion.
Key points to remember
- Visale is a free guarantee provided by Action Logement: in the event of unpaid rent, or rental damage when the tenant permanently leaves the property, the landlord is paid by Action Logement, and the tenant then reimburses that organisation.
- The application must be made before signing the tenancy agreement: the tenant obtains a visa, then the landlord validates a guarantee deed online.
- In the private sector, the guarantee can cover up to 36 months of unpaid rent during the first 3 years of the tenancy (from 1 to 9 months for a seasonal worker), and up to 2 months’ rent and charges for rental damage when the tenant permanently leaves.
- The landlord must comply with specific deadlines, notably sending a formal demand within 15 days of the missed payment and, after recovering the property, allowing 60 days to request cover for the damage.
- The property and tenant must meet eligibility conditions, particularly regarding age, status, tenancy type, the property’s municipality and the permitted rent level.
What Visale specifically secures for the landlord
According to Service-Public.fr, the Visale guarantee covers two main risks for the property owner.
- Unpaid rent and charges.
- Rental damage identified when the tenant permanently leaves the property.
The principle is as follows: when the situation falls within the prescribed framework, Action Logement pays the landlord first, then requests reimbursement from the tenant. This is a rental guarantee, not a non-repayable grant: the tenant must reimburse the sums advanced by Action Logement.
For the property owner, the benefit is also practical. If unpaid rent is reported in the required manner, Action Logement also manages recovery. If the situation requires it, this process may go as far as terminating the tenancy agreement and evicting the tenant.
The amounts covered
The coverage limits differ depending on whether the property is in the private or social housing sector.
| Covered situation | Private sector | Social sector |
|---|---|---|
| Unpaid rent and charges | Up to 36 months of unpaid rent during the first 3 years of the tenancy (from 1 to 9 months for a seasonal worker) | Up to 9 months of unpaid rent and rental charges, after deducting housing benefit, during the first 3 years of the tenancy |
| Rental damage when the tenant permanently leaves | Up to 2 months’ rent and charges provided for in the tenancy agreement | Not covered for an ordinary tenant; up to 2 months’ rent and charges stated in the tenancy agreement for a seasonal worker |
| After the first 3 years of the tenancy | A new application is required to continue benefiting from Visale | A new application is required to continue benefiting from Visale |
Visale therefore does not provide unlimited protection. The period covered, applicable ceilings and reporting formalities remain decisive in obtaining payment.
What conditions must the landlord meet to benefit from it
The first filter concerns the tenant’s situation. Action Logement issues the visa to certain groups, with rules varying according to age, status and the property’s location. Service-Public.fr notably distinguishes:
- tenants who have reached the age of 17 years and 10 months and are under 30, with different conditions depending on whether they are students, apprentices, seasonal workers or other profiles;
- certain tenants aged 30 or over, particularly private-sector employees, including those in agriculture, in the cases set out in the official guidance.
The property must also fall within the scope of the scheme. The guarantee covers certain properties let in mainland France, the French overseas departments and regions or Saint Martin. Depending on the circumstances, it may cover a private-sector property, certain social housing, a university residence, a young workers’ hostel, supported accommodation and, for seasonal workers, other forms of accommodation listed by the authorities.
For the landlord, several conditions are essential:
- the tenant must have obtained their visa before signing the tenancy agreement;
- the landlord must not already have a guarantee or unpaid-rent insurance, as they cannot then benefit from the Visale guarantee;
- the landlord must accept the guarantee agreement;
- the tenant and landlord must not be members of the same family (grandparent, parent or child); the only exception is the intergenerational solidarity cohabitation scheme established within the Cohabilis network.
The key point to watch regarding rent
Visale is not available for just any amount of rent. The permitted ceiling depends on the municipality where the property is located, the tenant’s profile and, in some cases, their resources.
As these rules vary according to the municipality and the candidate’s exact situation, it is best to check the applicable ceiling on the official Visale guarantee page before accepting the application.
How to set it up without losing the guarantee
The timeline is directly important. If the tenancy agreement is signed before the required steps are completed, the guarantee does not apply.
Tenant step
The prospective tenant applies online and submits the requested supporting documents. If the application is complete and compliant, they receive a visa within a few working days.
Landlord step
The owner creates their personal account on Visale.fr, enters the visa number, the tenant’s name and the property details, then validates the proposed guarantee deed created automatically.
Signing the tenancy agreement
The tenancy agreement must only be signed after this validation. For a year-round let subject to a residential tenancy agreement, this point must be checked as soon as the application is reviewed, alongside the candidate’s other documents.
What must the landlord do in the event of unpaid rent
The guarantee operates provided that the prescribed procedure is followed. In the event of unpaid rent, Service-Public.fr describes several successive steps.
- Within 15 days of the missed payment, send the tenant a formal demand for payment by recorded delivery with acknowledgement of receipt.
- As soon as the unpaid amount exceeds the total of one month’s rent and charges (after deducting housing benefit), the landlord can report it to Action Logement from their online personal account.
- After this declaration, validate online the subrogation receipt issued by Action Logement, with the requested supporting documents.
After validating this receipt, Action Logement pays the landlord the corresponding amount within 5 working days, then seeks reimbursement from the tenant.
The official page gives a simple example: for €450 in monthly rent and €50 in monthly charges, the report can be made as soon as the unpaid amount exceeds €500 when the tenant does not receive housing benefit. If benefit is paid, the threshold is calculated after deducting it.
As long as the tenant’s debt to Action Logement has not been fully repaid, the landlord must update the tenant’s account every month in their online area, including if rent payments have resumed. To find out more about this topic, you can consult the steps to follow in the event of unpaid rent.
And for rental damage
Cover for damage is possible when the tenant has permanently left the property. After recovering the property, the landlord has 60 days to request this cover from Action Logement.
The application is made from the personal account, with supporting documents for the damage, including check-in and check-out inventories, as well as proof of repairs, notably the invoice. Action Logement then issues a subrogation receipt to be validated online. After validation, payment is made within 5 working days, up to the limit of 2 months’ rent and charges stated in the tenancy agreement.
How this can make the property easier to let
For a landlord, Visale can make applications acceptable that would have been rejected for lack of a conventional family guarantor. Under-30s, apprentices, students and certain employees aged 30 or over may, when their situation meets Action Logement’s criteria, present a visa instead of a family guarantor.
The benefit is not only financial. The scheme also creates a defined administrative framework: prior approval, a guarantee agreement, a threshold for reporting the unpaid amount, payment after validation of the subrogation receipt, followed by recovery conducted by Action Logement.
Nevertheless, it is important to pay close attention to the exact conditions: visa obtained on time, accepted tenancy type, break clause where required, permitted rent and compliance with reporting deadlines. If in doubt about a particular application, guidance from ANIL or ADIL may be useful.
Frequently asked questions
Does Visale completely eliminate the risk of unpaid rent for the landlord?
No. The guarantee covers unpaid amounts and, within certain limits, rental damage when the tenant permanently leaves the property. In the private sector, cover may extend to 36 months of unpaid rent during the first 3 years of the tenancy agreement (from 1 to 9 months for a seasonal worker) and up to 2 months’ rent and charges for damage.
Can the landlord apply for Visale after signing the tenancy agreement ?
No. The tenant must obtain their visa before signing the tenancy agreement, after which the landlord must approve the guarantee agreement. The tenancy agreement must only be signed after this stage.
From what amount of unpaid rent can it be reported?
The landlord can report the missed payment as soon as it exceeds the total of one month’s rent and charges, after deducting housing benefit. The official example uses €500 without housing benefit for rent of €450 and €50 in charges.
Is damage automatically covered when the tenant leaves ?
No. The application must be made after the property has been recovered, within 60 days, with the requested supporting documents. Cover applies to rental damage when the tenant permanently leaves the property and remains limited to 2 months’ rent and charges stated in the tenancy agreement.
Does Visale apply to all properties rented on an annual basis?
No. You must check the type of housing, the municipality, the amount of rent, the tenant’s age and status. Depending on the circumstances, the guarantee applies in particular to private-sector housing, certain social housing, university residences or hostels, with different conditions depending on the applicant’s profile.
Sources
Good to know. The content of the articles may contain errors, omissions or information that has become inaccurate since the date of publication, despite the checks carried out. It is provided for purely informational purposes: it does not replace the advice of a notary, solicitor, chartered accountant or property professional, and the firm accepts no liability in the event of incorrect information. For your situation, rely on the official sources cited or contact us.
