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

What is a guarantor in a shared apartment?

A guarantor is a person (often a relative or an organization) who undertakes, in writing, to pay the rent and utilities if the flatmate fails to do so. It enables the lessor of the rental contract to protect himself in the event of unpaid rent.

There are two types of guarantor:

• Simple guarantor: the guarantor is only called upon once all legal action against the flatmate has failed.
• Joint and several surety: the guarantor can be called upon immediately, without waiting for the landlord to take legal action against the flatmate.

Good to know: In a shared tenancy, each flatmate can have his or her own guarantor, and each guarantor covers only the designated flatmate. There is an exception to this rule in the case of a joint and several clause in the rental contract.

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.

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.

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.