Unpaid Rent Insurance (Garantie Loyers Impayés or GLI) is designed to protect landlords against the financial consequences of late or missed rental payments. For furnished rental properties in France, this insurance helps safeguard rental income and investment profitability, particularly when rent is used to repay a mortgage or supplement the landlord's income. Depending on the policy, unpaid rent insurance may cover unpaid rent and service charges, certain debt recovery and legal proceedings costs, and property damage caused by tenants. Coverage conditions vary between insurers, including tenant eligibility and income requirements, compensation timescales, deductibles, reimbursement limits, exclusions and eligible tenancy agreements. In 2027, typical unpaid rent insurance premiums on the French market are estimated at approximately 2.5% to 5% of the insured rent. For a furnished apartment rented at €1,500 per month including charges, a 3% premium represents €45 per month or €540 per year. Lodgis offers Unpaid Rent Insurance at a rate of 3% including VAT of the monthly rent including charges. Subject to the policy terms, the Lodgis guarantee provides regular monthly rental payments, protection from the first day of late payment, rent coverage without a stated reimbursement ceiling, coverage of eligible legal proceedings costs and protection against certain types of tenant damage. The guarantee may be available to landlords entrusting their property rental to Lodgis without necessarily requiring a comprehensive property management package. Unpaid rent insurance differs from a personal guarantor and the Visale guarantee, which operate under different protection mechanisms. For residential tenancy agreements governed by the French law of July 6, 1989, combining unpaid rent insurance with a personal guarantor is generally prohibited, subject to legal exceptions, particularly for students and apprentices. Insurance premiums may generally be deducted from taxable rental profits under the actual expenses tax regime, subject to the applicable tax rules, but cannot be deducted separately under the micro-BIC regime. When choosing a suitable guarantee, landlords should consider the premium, compensation arrangements, additional coverage and eligibility conditions. Specializing in furnished rentals and rental property management, Lodgis helps landlords find tenants and protect their rental income.
Renting out a furnished apartment allows property owners to generate regular income and enhance the value of their real estate assets. However, even when a tenant is financially reliable and their application has been carefully reviewed, late payments or rent arrears can still occur.
To protect their rental income, landlords can take out Unpaid Rent Insurance (Garantie Loyers Impayés or GLI). This protection helps limit the financial consequences of unpaid rent and, depending on the policy, may also cover legal proceedings costs and damage to the property.
In 2027, securing rental income remains an essential concern for landlords, particularly those repaying a mortgage or relying on rental payments to supplement their income.
What are the benefits of unpaid rent insurance for furnished rentals? How does it work, how much does it cost and which guarantees should landlords prioritize?
Discover everything you need to know to protect your rental property investment.
Unpaid Rent Insurance (GLI) is designed to protect landlords against the financial consequences of tenants failing to pay their rent.
In the event of late or missed payments, it allows the property owner to receive compensation in accordance with the guarantees and conditions set out in the policy.
Depending on the insurance package selected, coverage may include:
Coverage levels vary between insurers. Some policies include deductibles, compensation waiting periods or reimbursement limits.
Unpaid rent insurance can therefore provide valuable financial protection for landlords seeking to safeguard their property investment.
Taking out unpaid rent insurance offers several advantages for furnished rental landlords.
The primary benefit is protecting the income generated by renting out the property.
If the tenant fails to meet their payment obligations, the landlord may receive compensation in accordance with their insurance policy.
This protection helps reduce the impact of unpaid rent on the landlord's budget.
For many property investors, rental income covers part or all of their monthly mortgage payments.
However, mortgage repayments remain due even when a tenant stops paying rent.
Unpaid rent insurance can therefore help maintain the financial balance of a rental investment.
Persistent rent arrears may require several steps, including payment reminders, formal notices, debt recovery procedures or legal action.
These procedures can result in significant expenses.
Depending on the guarantees included in the policy, the insurer may cover some or all of the eligible costs.
Some unpaid rent insurance policies include additional coverage for property damage caused by tenants.
This guarantee may apply when damage attributable to a tenant is identified and meets the policy's coverage conditions.
However, it is important to check the exclusions, deductibles and reimbursement limits specified in the contract.
When rent goes unpaid, administrative and legal procedures can be lengthy and complicated.
A guarantee that includes rent arrears management services can provide landlords with specialist assistance in resolving the situation.
Beyond financial compensation, one of the main benefits of GLI is therefore greater peace of mind when renting out a property.
Furnished rentals have certain characteristics that make securing rental income especially important.
Furnished accommodation may be rented to students, employees relocating for work or international tenants under agreements suited to their circumstances.
These tenants may move more frequently than tenants in some unfurnished rentals.
For landlords, each new tenancy therefore requires reviewing the applicant's file and assessing their ability to pay the rent.
For landlords who own one or more furnished apartments, rental income often represents a significant part of their property investment returns.
A period of unpaid rent can reduce profitability and disrupt cash flow.
Unpaid rent insurance helps limit this risk and protect expected rental income.
Even when a tenant has sufficient income and stable employment, unexpected events can lead to financial difficulties.
GLI therefore provides additional protection alongside the careful assessment of rental applications.
Important: not all insurance policies automatically cover the same types of tenancy agreements. It is essential to check that the selected guarantee is compatible with the duration and characteristics of your furnished rental.
Unpaid rent insurance generally operates through several stages.
Before the insurance is taken out, the insurer may require the tenant's application to meet specific financial eligibility criteria.
These may concern income levels, employment status or the supporting documents provided.
Requirements vary between insurers and policies.
Once the tenant's application has been approved, the landlord can take out a guarantee suited to their circumstances.
They should check the coverage provided, the insurance premium, any waiting periods and exclusions.
When rent is not paid by the agreed due date, the landlord must follow the procedures specified in the policy.
This may involve sending a payment reminder, issuing a formal notice or reporting the unpaid rent to the insurer within a specified period.
After verifying that the conditions for coverage have been met, the insurer compensates the landlord according to the terms of the policy.
Some insurance arrangements include a waiting period before the first payment.
Other solutions, such as the guarantee offered by Lodgis, provide payment arrangements designed to ensure greater consistency in rental income.
The cost of unpaid rent insurance primarily depends on the amount of rent insured and the guarantees selected.
As a general indication, premiums commonly found on the market range from approximately 2.5% to 5% of the insured rental amount.
The price may vary depending on compensation limits, deductibles, payment timescales and additional coverage.
Consider an apartment rented for €1,500 per month, including charges.
| Insurance rate | Monthly cost | Annual cost |
|---|---|---|
| 2.5% | €37.50 | €450 |
| 3% | €45 | €540 |
| 4% | €60 | €720 |
| 5% | €75 | €900 |
These figures are illustrative and show how the insurance rate affects the monthly and annual cost.
Lodgis offers Unpaid Rent Insurance at a rate of 3% including VAT of the monthly rent, including charges.
For an apartment rented at €1,500 per month, this represents €45 per month.
This guarantee provides landlords with protection for their rental income alongside the services included in the Lodgis offer.
When comparing unpaid rent insurance policies, landlords should therefore consider not only the price but also the compensation arrangements.
Not all unpaid rent insurance policies offer the same level of protection.
Before subscribing, several criteria deserve particular attention.
Some insurance policies involve processing delays before compensation is paid.
For landlords repaying a mortgage, this waiting period can create cash flow difficulties.
A policy may limit the total amount of rent covered or the duration of compensation.
It is therefore important to check whether any limits apply.
Some guarantees require landlords to bear part of the financial loss themselves.
Others include exclusions relating to the tenant's circumstances, the type of lease or the conditions under which insurance was taken out.
If legal proceedings become necessary, lawyers' fees and other costs may represent an additional expense.
Legal expenses coverage is therefore an important consideration.
The ease of taking out the insurance and managing claims can also make a significant difference.
Appropriate support allows landlords to spend less time resolving rental payment incidents.
The best unpaid rent insurance policy is therefore not necessarily the cheapest, but the one that best meets the landlord's needs and investment objectives.
Several mechanisms can protect landlords against rental payment difficulties.
However, they do not operate in the same way.
A joint and several guarantor (caution solidaire) is an individual or legal entity that undertakes to pay amounts owed by a tenant if the tenant defaults.
The landlord must take the necessary steps to obtain payment from the guarantor.
Visale is a rental guarantee scheme provided by Action Logement in France.
Subject to eligibility requirements, it can cover certain unpaid rent amounts and certain types of tenant damage.
Eligibility depends in particular on the tenant's profile and the characteristics of the tenancy agreement.
Unlike a personal guarantor, unpaid rent insurance is based on a contractual guarantee providing compensation under defined conditions.
It may also include additional services such as legal assistance or coverage for property damage.
For residential tenancy agreements governed by the French law of July 6, 1989, combining rental risk insurance with a personal guarantor is generally prohibited.
An exception applies in particular when the accommodation is rented to a student or an apprentice.
The security deposit, which can cover certain amounts owed when a tenant leaves the property, is a separate form of protection.
Specializing in furnished rentals, Lodgis offers Unpaid Rent Insurance designed to help landlords secure their rental income.
This solution stands out in particular for its payment arrangements and the assistance provided to property owners.
With the Lodgis guarantee, landlords benefit from regular rental payments on a consistent date, even if the tenant pays late, in accordance with the terms of the offer.
Rent is guaranteed from the first day of late payment, with no additional payment delay advertised.
This benefit helps property investors manage cash flow and anticipate their financial commitments.
Lodgis Unpaid Rent Insurance provides rent coverage with no stated reimbursement ceiling throughout the tenancy, subject to contractual conditions.
This helps limit the financial consequences of prolonged rent arrears.
In the event of non-payment, eligible legal proceedings costs may be covered under the guarantee.
Landlords receive assistance and do not have to manage the covered legal procedures entirely on their own.
The guarantee also includes coverage for certain types of tenant-related property damage, subject to the conditions specified in the contract.
Lodgis offers this protection to landlords who entrust their property rental to the agency, without necessarily requiring them to subscribe to a comprehensive property management package.
Landlords can therefore benefit from financial protection while retaining their preferred level of independence.
Lodgis Unpaid Rent Insurance is offered at 3% including VAT of the rent, including charges.
This solution combines rental income protection with payment arrangements designed to meet property investors' needs.
Regular income is essential for managing a property investment effectively.
Landlords must cover several recurring expenses, including:
Even a short payment delay can create a mismatch between expected rental income and ongoing expenses.
A landlord rents out a furnished apartment for €1,500 per month and has monthly mortgage repayments of €1,100.
If the tenant fails to pay rent on time, the landlord must still meet their mortgage obligations.
With a guarantee providing regular rental payments, the landlord can manage their budget more predictably, subject to the conditions of the insurance coverage.
Consistent payment dates are therefore a major advantage in maintaining the financial stability of a rental property investment.
Premiums paid for unpaid rent insurance may receive favorable tax treatment, depending on the landlord's tax regime.
Income from furnished rentals is generally taxed under the Business Income category (Bénéfices Industriels et Commerciaux or BIC).
Under the actual expenses regime (régime réel), insurance premiums linked to the rental activity can generally be recorded as deductible expenses, subject to the applicable tax requirements.
Under the micro-BIC regime, expenses are taken into account through a standard tax allowance.
Landlords cannot therefore deduct their insurance premiums separately.
For unfurnished rentals taxed under the actual expenses property income regime, unpaid rent insurance premiums may also be deductible, subject to the relevant conditions.
The tax treatment of this protection should therefore be assessed according to the landlord's individual circumstances and tax regime.
It is generally advisable to consider unpaid rent insurance before signing the tenancy agreement or when preparing to rent out the property.
This allows landlords to verify the tenant's eligibility and understand the coverage requirements.
Some insurance providers also allow policies to be taken out during an existing tenancy, subject to specific conditions.
To take out Lodgis Unpaid Rent Insurance, landlords can contact their Lodgis advisor to discuss the conditions applicable to their property.
Our teams can explain the available guarantees, check the rental application's eligibility and assist with the necessary procedures.
Would you like to protect your rental income against late payments? Discover Lodgis Unpaid Rent Insurance and benefit from a solution tailored to your furnished rental investment.
Unpaid rent insurance protects landlords against the financial consequences of tenants failing to pay rent.
Depending on the policy, it may also cover certain legal expenses, debt recovery procedures and tenant-related property damage.
Yes, particularly when rental payments represent a significant source of income or are used to repay a mortgage.
This protection can help secure a rental property investment, subject to the terms of coverage.
The cost depends on the insurer and the guarantees selected.
As a general indication, premiums may represent approximately 2.5% to 5% of the insured rent.
Lodgis offers a guarantee at a rate of 3% including VAT of the rent, including charges.
No. Taking out unpaid rent insurance is optional for landlords.
It depends on the policy. Some insurance providers impose a waiting period before compensation.
The Lodgis guarantee provides regular rental payments from the first day of late payment, in accordance with the terms of the offer.
In principle, combining these two protections is prohibited for the residential tenancy agreements concerned, except in legally permitted circumstances, particularly for student or apprentice tenants.
Some insurers allow this under certain conditions, particularly depending on the tenant's payment history.
It is important to check the conditions of the relevant policy.
Some policies provide this coverage in addition to unpaid rent protection.
The level of compensation depends on the guarantees, reimbursement limits and exclusions specified in the contract.
Yes, subject to certain conditions and depending on the applicable tax regime.
Under the actual expenses regime, premiums may generally qualify as deductible expenses.
Under micro-BIC, they are covered by the standard tax allowance and cannot be deducted separately.
Unpaid Rent Insurance for furnished rentals offers several advantages for landlords wishing to protect their rental income and secure their property investment.
Beyond covering unpaid rent, it may provide legal assistance, protection against certain types of property damage and simplified management of payment incidents.
To choose the most suitable solution, landlords should compare compensation timescales, reimbursement limits, exclusions and insurance costs.
With its offer priced at 3% including VAT of the rent, including charges, Lodgis provides a solution that emphasizes regular rental payments and financial protection for investors, subject to the applicable contractual conditions.
Protecting your rental income also means preserving the profitability of your investment and enjoying greater peace of mind.
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