Furnished apartment: security deposit and guarantor

The necessity of a guarantor when renting a furnished apartment

In Lyon's dynamic rental market, particularly for furnished apartments and furnished studios, having a guarantor is a common requirement among landlords. This security mechanism allows them to protect their rental income against the risk of unpaid rent, by ensuring that a third party — the guarantor — will be able to cover any rent owed should the tenant experience financial difficulties.

Why is a guarantor so often required?

The use of a guarantor is especially common when renting furnished apartments, including studios intended for students. Lyon, with its many higher education institutions, attracts a large student population that does not necessarily have the financial history or regular income to reassure landlords. The guarantor thus becomes additional insurance for the landlord, giving them peace of mind regarding the regularity of payments.

How do you find a guarantor?

Finding a guarantor can be a challenge, especially for international students or young professionals early in their careers. A guarantor is generally someone close to you (a family member or trusted friend) who agrees to act as a security deposit. They make a legal commitment to pay the rent in the event that the tenant is no longer able to do so. For those who do not have a local network able to provide a guarantor, there are alternative solutions:

• Garantie Visale: a free scheme offered by the French government, available to students and young workers, which acts as a guarantor for the tenant.
• Paid guarantor services: several companies offer to act as a guarantor for a tenant in exchange for a fee or subscription.

What should you do if you have no guarantor?

If you have no guarantor, it is important to discuss alternatives with the landlord. Some may be open to other forms of guarantee, such as an increased security deposit or advance payment of several months' rent. Other innovative solutions, such as bank guarantees, may also be considered. These typically involve the tenant locking a certain sum in an account, which the landlord may only draw upon in the event of unpaid rent.

The different types of guarantees to secure your rental

There are primarily two forms of guarantee: the simple security deposit and the joint security deposit. With a simple security deposit, the landlord must first seek payment from the tenant before turning to the guarantor. With a joint security deposit, however, the landlord can seek unpaid rent directly from the guarantor without contacting the tenant first. This latter option is often preferred by landlords for its reliability.

How do you formalise a guarantee?

It is crucial to formalise the guarantee in writing, setting out all the terms in detail, such as rent, utilities, taxes, repairs, occupation indemnities, and interest. This ensures legal protection for both the tenant and the guarantor.

Guarantor-free alternatives: the bank guarantee

If you do not have a guarantor, a bank guarantee may be considered. With the landlord's agreement, you can ask your bank to lock a sum equivalent to several months' rent in an account. In the event of a missed payment, the landlord can then be reimbursed directly by the bank.

The advantages of furnished studios in Lyon for students

Lyon, being a major educational hub, attracts a large number of students every year, which increases demand for furnished studios in student residences. These accommodations offer many advantages:

• Convenience: Furnished studios in Lyon come equipped with everything you need to move in immediately without any additional hassle.
• Cost savings: Renting a furnished studio eliminates the need to purchase furniture, which is economically advantageous for students.
• Flexibility: Renting studios in a student residence often comes with contracts tailored to the academic year.

Why choose a student residence for your furnished studio in Lyon?

Choosing a student residence for your studio rental in Lyon offers security, proximity to university campuses, and an enriching community life alongside other students. In addition, these residences are often equipped with additional services such as 24/7 security, study rooms, and relaxation spaces.