Choosing the right tenant

In our activity, whether it is our main activity as a bailiff, or our secondary activity as an administrator of a company, we have a wide range of activities in which we are involved.choosing the right tenantIn the real estate sector, we are frequently confronted with the question of landlords: how to choose the right tenant?

The choice of a tenant is indeed the second most important act of your rental management (the first being the choice of your property to buy).

Our first tip is to put yourself in the position of having a choice of tenant. Choice means having an attractive property.
Therefore, you should make sure you have a legible, correctly worded ad, highlighting the property for rent, accompanied by photographs. When taking the photographs, you will make sure that the premises are empty or, at the very least, tidy.

The other important point to have an attractive property is to offer a rent slightly below the market price. Not only will you be able to rent your property more quickly, but above all you will attract more candidates. By renting 5% less than the market price but renting two months faster, you are indeed a winner over a period of three years!

Contrairement aux idées reçues, un loyer au dessus du marché n’attire que les candidats qui ont vu leurs dossiers rejetés par ailleurs, il s’agit donc de candidats dont les dossiers sont de moins bonne qualité.
En étant à un niveau de prix légèrement inférieur au marché, vous attirez des « bons candidats ».

How to select the files to choose the right tenant?

Particular attention must be paid to the solvency of the tenant and his guarantor. We can never draw your attention enough to the need to check the elements presented to you: nothing is simpler than creating false pay slips for example.

Before renting a dwelling, the owner has the right to inquire about the identity and solvency of the future tenant.

As such, he may only claim the following documents (or a copy) :

  • a French or foreign identity document (identity card, residence permit, passport or driving licence),
  • the last 3 rent receipts or a certificate of domiciliation or a certificate from the host or the last property tax notice or title deed of the main residence,
  • employment contract or student card or copy of the professional card for a liberal profession or copy of the certificate of identification of theInsee or any document attesting to the professional activity for the other cases,
  • the last three pay slips or the last two balance sheets for non-employees or proof of payment of social, family or retirement benefits received during the last 3 months,
  • title to real estate,
  • last or penultimate tax notice,
  • Notice of award of scholarship, if the tenant is a scholarship student,
  • justification of income from land or income from movable capital,
  • simulation for housing subsidies established by the Cafthe CMSA or directly by the tenant.

Likewise, the landlord/lessor may request the following documents (or a copy) from the guarantor:

  • a French or foreign identity document (identity card, residence permit, passport or driving licence),
  • the last rent receipt or a housing insurance certificate less than 3 months old or a water, gas or electricity bill less than 3 months old or the last property tax notice or title of ownership of the main residence,
  • work contract or student card or copy of the professional card for a liberal profession or copy of the INSEE identification certificate or any document attesting to the professional activity for other cases,
  • the last three pay slips or the last two balance sheets for non-employees or proof of payment of social, family or retirement benefits received during the last 3 months,
  • last or penultimate tax notice,
  • justification of income from land or income from movable capital,

However, the landlord may not request the following documents from the tenant or the guarantor.

Bank documents

The owner cannot claim the following financial documents :

  • copy of bank or postal account statement,
  • certificate of good standing of the bank or post office account,
  • direct debit authorization.

Privacy related documents

The owner cannot claim the following personal documents:

  • passport photograph (except for the one on the ID card),
  • social security card,
  • extract from the criminal record,
  • jugement de divorce (sauf le paragraphe commençant par l’énoncé « Par ces motifs » qui permet de prouver le divorce),
  • marriage contract or cohabitation certificate,
  • personal medical records.

Proof of financial position

The landlord cannot require the tenant to justify his financial situation on the basis of the following documents :

  • certificate of no current credit,
  • information contained in the national register of individual credit repayment incidents, or information on non-registration in this register,
  • certificate from the previous lessor stating that the tenant is up to date with his rent and charges, provided that the tenant can present other proof (rent receipts),
  • production of more than 2 balance sheets for the self-employed.

Illegal payments

The lessor has no right to require the lessee to pay certain sums (apart from the rent, charges and security deposit) in return for the lease granted. As such, the law prohibits :

  • the payment of a reservation check for the accommodation,
  • the remittance to a blocked account of goods, bills, securities or a sum of money corresponding to more than 1 month's rent.

In conclusion, in order to choose the right tenant, a landlord must make sure to attract as many potential candidates as possible, by means of an advertisement highlighting the property and by a rent that is sometimes a little below the market. In addition, he will have to take particular care, in compliance with the legal rules, to check the solvency of the candidate and his guarantor.