Unpaid Rent: What to Do If Your Tenant Stops Paying?

In the real estate sector, unpaid rent is a major challenge for many landlords. When a tenant stops paying rent, the rental situation can quickly become critical: loss of income, complex administrative procedures, or even eviction proceedings before the court. As a landlord, you still have rights, legal remedies, and concrete solutions to deal with unpaid rent.

This article guides you step by step through the necessary procedures, actions to take, and explains how to prevent unpaid rent and secure your rental.

1/ Preventing unpaid rent

Here’s what to do to prevent and avoid unpaid rent even before signing the lease, and to secure your rental long-term.

Carefully reviewing the tenant’s application

Preventing unpaid rent starts well before renting out the property. When reviewing a prospective tenant’s file, the landlord must ensure the applicant’s financial reliability. It is recommended to require strong supporting documents: payslips, tax returns, employer certificate, bank statements.

Requesting a guarantor or security deposit

A joint guarantor (an individual) or a reliable guarantor offers financial protection in case of rent non-payment. The lease agreement must clearly mention this clause to ensure legal enforceability.

Drafting a solid lease

A well-written lease agreement is a key tool for preventing unpaid rent. It should include a termination clause allowing automatic lease termination in the event of unpaid rent, following a formal demand that remains unanswered. This clause is essential to initiate legal proceedings quickly.

Taking out rent guarantee insurance

Rent guarantee insurance (GLI) is increasingly used by landlords. It secures rental income even when the tenant experiences payment difficulties. This coverage includes outstanding rent, recovery costs, eviction proceedings, and sometimes damage to the premises.

At Lodgis, we offer a rent guarantee insurance solution, available alongside our rental management service, to help you rent out your property with peace of mind.

2/ First missed payment: what steps to take?

Unpaid rent must be taken seriously from the very first day of delayed payment. As a landlord, being proactive can make all the difference.

Amicable reminder to the tenant

The first step is to contact the tenant to understand the situation. It may be a simple oversight, an administrative delay with CAF, or a temporary professional setback. It is advisable to send a formal reminder letter, mentioning the rent amount and payment terms defined in the lease.

Formal notice by registered letter

If the rent is not paid promptly, you may send a formal notice by registered letter with acknowledgment of receipt. This letter constitutes an official action before initiating legal proceedings.

3/ Legal procedure: how to recover unpaid rent?

If the situation persists, a formal legal procedure must be initiated. Here are the key steps to follow.

Formal demand by bailiff

If your lease contains a termination clause, you can have a formal payment order issued by a judicial officer (formerly bailiff). This document grants the tenant a legal two-month period to settle the debt, failing which the lease may be terminated.

Filing with the civil court

In case of ongoing non-payment, you’ll need to file a case with the civil court. The judge will assess the rental situation, the amount of the debt, and may rule on lease termination, debt recovery, or even eviction. The court may also propose a repayment plan if the tenant’s situation warrants it.

Lease termination and eviction

Once the court issues a ruling, a judicial officer can proceed with the eviction of the tenant and recovery of the premises. This action must comply with the law, especially the winter truce period, which prohibits evictions from November 1 to March 31 (except in special cases).

4/ Remedies to recover unpaid rent

Unpaid rent doesn’t necessarily mean you’ll never recover the amounts owed. Several remedies are available:

• Wage garnishment or bank account seizure, after a court ruling;
• Calling upon the guarantor or security deposit, if specified in the lease;
• Amicable recovery with a tailored payment plan (e.g., installment agreement);
• Activating your rent guarantee insurance, if subscribed.

Each action must be conducted in compliance with rental law to avoid legal disputes.

5/ The impact of unpaid rent on landlords

Unpaid rent can seriously affect a landlord’s finances, especially when managing building fees, mortgage payments, or property taxes. The consequences are both financial and legal and can hinder future investment plans. This is why many landlords now choose to delegate rental management to a professional agency.

With Lodgis, you benefit from tailored support, from tenant selection to handling legal procedures in the event of non-payment. Our team guides you through every step and helps you secure your furnished rental.

6/ Entrust your property to Lodgis: peace of mind in case of unpaid rent

You own a rental property and want to avoid the risks associated with unpaid rent? Lodgis supports you at every step: thanks to our expertise, you benefit from a stress-free rental process, fully compliant with the law.

Did you know? At Lodgis, we offer rent guarantee insurance. A reliable solution to protect your rental income and lease your property with peace of mind.

Want to entrust your property to Lodgis? Contact us to discover our tailored services.

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