Security deposits for flat-sharing: what every flatmate needs to know!

Single lease, individual lease and joint and several tenancy clause

Single lease

• A single contract is signed by all co-tenants with the landlord.
• The entire property is rented collectively: the tenants share the payment of the total rent and the management of the property.
• This lease often includes a solidarity clause: this means that each flatmate (and his or her guarantor) can be held responsible for payment of the full rent and utilities, even if another flatmate defaults.
• If one tenant leaves, the others remain responsible for payment of the rent until a replacement is found, or until the end of the solidarity period stipulated in the lease.

Individual lease

• Each roommate signs a separate contract with the landlord, specifying his or her private area (bedroom) and access to common areas.
• Each tenant pays his or her own rent, independently of the others.
• There is no solidarity: if a flatmate fails to pay, the landlord can only claim the missing share from that flatmate (and his or her guarantor), not from the others.
• More flexibility to move in and out of the shared apartment, but each landlord manages each room as an independent unit.
• That’s why, in Ecla residences, you’re only responsible for your own rent.

Solidarity clause

Only found in single-tenant leases, this clause obliges each tenant (and his or her guarantor) to guarantee payment of the full rent, even if another tenant defaults.
It protects the landlord, but can represent a major risk for the other tenants, as each may have to pay for the others.

The rights and obligations of a guarantor in a shared tenancy

The guarantor’s obligations

• Pay in the tenant’s place: if the tenant fails to pay the rent or service charges, or causes damage, the guarantor undertakes to pay in the tenant’s place, up to the amount specified in the deed of guarantee.
• Respect the duration of the commitment: the guarantor is committed for the duration mentioned in the deed (until the end of the lease, including renewals, or for a specific period).
• Accept the type of surety: depending on whether the commitment is simple or joint and several, the surety may be requested immediately (joint and several) or only after the tenant’s legal action has failed (simple).

The guarantor’s rights

• Be informed of unpaid rent: The lessor must inform the guarantor as soon as the tenant fails to pay the rent for the first time. If this information is not given within one month, the guarantor cannot be required to pay penalties or interest for late payment.
• Limit your commitment: The guarantor can set a maximum guaranteed amount and limit the duration of his commitment in the deed of guarantee.
• Withdrawal: If the deed of guarantee so permits, the guarantor may terminate his or her commitment at the end of the lease, or in accordance with the terms set out (for example, by giving notice).
• Contest an abusive demand: The guarantor can refuse to pay if the lessor does not respect his obligations (for example, if the procedure has not been followed or if the amount demanded exceeds what is stipulated in the deed).

The deed of guarantee must specify :

• The name of the guaranteed tenant
• The maximum amount covered (rent + charges)
• The duration of the commitment
• The type of guarantee (simple or joint and several)
• Termination or renewal conditions

Alternatives to personal guarantees

Garantie Visale :

• The Garantie Visale is offered by Action Logement, and covers unpaid rent for up to 36 months.
• The Visale guarantee is available to young people aged 18 to 30 (students, work-study students, young professionals). It is also open to employees over 30 in precarious situations (fixed-term contracts, temporary work, trial periods, etc.).
• Each tenant must apply individually.

Unpaid rent insurance (GLI):

The rental guarantee is underwritten by the landlord, this covers unpaid rent, but may exclude the possibility of requiring a guarantor, except for students.

Shared-tenant security deposit

The security deposit (1 to 2 months’ rent) is returned to the last tenant to leave.

If a flatmate leaves early, he or she must be reimbursed by his or her replacement, by mutual agreement.

What to do in the event of a dispute?

• If the landlord requests the guarantor’s assistance, he must send a formal notice.
• The guarantor can contest an abusive request or check the conformity of the lease (solidarity clause, amount, etc.).
• The French government offers a number of housing subsidies to help students on a tight budget reduce the cost of their rental.

What are the risks if I sign a joint and several guarantee without understanding?

Signing a joint and several guarantee without understanding the consequences can expose you to considerable financial risk. In the event of unpaid rent, you could be required to pay all the rent and charges due, sometimes over a long period, even if you have no direct link with the defaulting tenant.

That’s why, before signing a tenancy agreement, it’s crucial to :

• carefully read the duration of the commitment;
• check the maximum amount guaranteed, if this is mentioned;
• seek advice from professionals or tenants’ associations if you have the slightest doubt.

Practical advice for flatmates

• Carefully read the lease and the deed of guarantee: check whether there is a joint and several liability clause and its consequences.
• Use the Visale guarantee if you are eligible: it protects you without committing your loved ones.
• Clarify the management of the security deposit and reimbursements between roommates.
• Draw up a tenancy agreement to share responsibilities and avoid conflicts.

Summary table: Single vs. joint surety for shared tenancy

Tenancy deposit: what you need to know

In shared accommodation, a surety bond is a serious legal act, often overlooked, which can have serious consequences for both the guarantor and the tenant. To avoid unpleasant surprises, it’s essential to understand the implications of a joint tenancy guarantee, and in particular the difference between a simple guarantee and a joint and several guarantee.

Before committing yourself, take the time to read the lease and the surety agreement carefully. Joint and several surety is the most common type of surety: it commits the guarantor to paying all rental debts if only one of the co-tenants defaults, without the landlord having to turn to the tenant concerned first.

For a safe and secure shared tenancy, we recommend that you :

• Find out in advance about the rights and obligations associated with a shared-tenancy deposit;
• Talk openly with other tenants to anticipate risks;
• Consider alternatives such as the Visale Guarantee, a free solution that can replace the traditional deposit.

In short, a tenancy deposit should never be signed lightly. It’s better to be safe than sorry: get informed, talk things over, and get help to avoid the pitfalls. Find out about other types of accommodation so you can choose the one that suits you best.