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How to avoid the pitfalls of renting under a trial period in France

by Home Conseil Relocation, TIRA member, France

 

Finding an accommodation in France is not easy, especially in Paris and its suburb with an extremely tense real estate.

Employees under a trial period face the issue all the more so if the owner has decided to subscribe to a ”GLI – Garantie de Loyers Impayés” (an insurance on unpaid rent).

In France and especially in Paris, more and more landlords/lessors opt for this insurance. For a monthly fee equal to 3% to 6% of the monthly rent, the GLI protects property owners against the risk of unpaid or overdue rent. Many real estate agencies negotiate group rates and resell this insurance to their own customers, which make them the main decision-maker.

To measure the risk of unpaid/overdue rent, strict criteria are defined and they are not negotiable. Among those, the future tenant should have a net salary of 3 times the amount of the rent (including rental charges) and be under a confirmed permanent contract.

Consequently, any employee under a trial period is not a suitable candidate and files of applicants under a trial period are automatically rejected.

This leads to a high number of inaccessible properties to foreign or newly hired employees and although we screen the properties that will be presented to you, the presence of a GLI is not always advertised or even known by the person putting the property on the market.

When no GLI is subscribed to on a property, the following options can facilitate the situation:

The physical guarantor: To counterbalance the trial period a physical guarantor is the go-to solution. The guarantor must be based in France and have French income corresponding to a minimum of 3 times the rent concerned. Therefore, it is often difficult for a foreign employee to have a physical guarantor.

The bank guarantee: A bank guarantee (equivalent to 3 months up to 1 year worth of rents, depending on the lessors/landlords’ instructions) is another solution. This option is quite expensive because it leads to a high amount of money frozen on a bank account as well as additional banking fees and account maintenance fees to be paid by the tenant.

The Visale guarantee: The Garantie Visale is a free of charge governmental service that offers to be the guarantor when renters have no French physical guarantor. This guarantee is subject to conditional access. Unfortunately, few agencies and landlords agree to use this guarantee so far as it is still quite novel.

The inverted GLI: Very recently, private insurance brokers created the GLI inverse or inverted GLI. The tenant pays between 3 and 6% per month of his rent to a private insurance company, which guarantees the loss of rent for the owner. This option is quite expensive for the tenant and is not well known nor widely accepted by the lessors as it is quite new as well.

This article was originally published here.

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More about Home Conseil Relocation

Based in Lyon, France’s second largest city in terms of economic vibrancy, Home Conseil Relocation serves the relocation needs of businesses throughout France and especially in Paris, with a team of qualified consultants.

Website: www.home-conseil.com
Twitter: Home Conseil

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More about TIRA
TIRA is an aligned network of quality mobility service providers. The network provides access to leading mobility experts from around the world that provide local solutions to global challenges. Network members exchange best practices and share this value with the industry through benchmarking exercises.

Website: www.tiranetwork.org
Twitter: @TIRAORG
LinkedIn: The International Relocation Associates (TIRA)
Facebook: The International Relocation Associates (TIRA)

Brexit: The French Government announces concrete steps to attract London’s finance

by Home Conseil Relocation, TIRA member, France

As Brexit fast approaches for 2019, the French Government recently presented a series of measures to increase Paris’s attractiveness in anticipation of the United Kingdom’s exit from the European Union, at a time when more than 3500 jobs are expected to be transferred from London’s financial sector to France:

Already announced in December 2017, a reduction, specifically tailored for the financial sector of France’s social contributions is coupled with a lower tax on high salaries and an attractive status for expatriates coming into France, extended from 5 to 8 years. Similarly, the Governement just announced investment funds’ ‘carried interests’ will be subject to the “flat-tax” instead of regular salary income, further increasing France’s competitiveness.

Regarding Paris’s offer in terms of international schooling, the Prime Minister announced an international school would open in 2019 in Courbevoie, next to Paris’s financial district of La Défense. Two more international schools are set to open by 2021 in Paris and its surroundings.

The Government intends to ciment Paris as the first financial center in mainland Europe.

All our team at Home Conseil Relocation is on deck around consequences of Brexit in order to make your transition into France as smooth as possible.

This article was originally published here.

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More about Home Conseil Relocation

Based in Lyon, France’s second largest city in terms of economic vibrancy, Home Conseil Relocation serves the relocation needs of businesses throughout France and especially in Paris, with a team of qualified consultants.

Website: www.home-conseil.com
Twitter: Home Conseil

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More about TIRA
TIRA is an aligned network of quality mobility service providers. The network provides access to leading mobility experts from around the world that provide local solutions to global challenges. Network members exchange best practices and share this value with the industry through benchmarking exercises.

Website: www.tiranetwork.org
Twitter: @TIRAORG
LinkedIn: The International Relocation Associates (TIRA)
Facebook: The International Relocation Associates (TIRA)

 

Sources:

https://www.lesechos.fr/13/12/2017/lesechos.fr/0301013971061_brexit—paris-prepare-un-nouveau-geste-pour-attirer-les-hauts-salaires.htm

http://www.europe1.fr/economie/brexit-la-place-financiere-de-paris-attend-plus-de-3500-emplois-directs-3707672

https://www.latribune.fr/entreprises-finance/banques-finance/fiscalite-education-philippe-deroule-le-tapis-rouge-a-la-finance-post-brexit-784881.html

Home Conseil Relocation maintains its quality certification for 2018-2020

Thanks to the combined efforts and vigilance of all its teams, Home Conseil Relocation is proud to announce it maintained the EuRA Global Quality Seal for 2018-2020.

As always the quality certification is a major milestone for Home Conseil Relocation in providing its clients best-of-class services in Relocation, Immigration and Expatriation.

This article was originally was published here.

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More about Home Conseil Relocation
Based in Lyon, France’s second largest city in terms of economic vibrancy, Home Conseil Relocation serves the relocation needs of businesses throughout France and especially in Paris, with a team of qualified consultants.

Website: www.home-conseil.com/en/
Twitter: @HomeConseil
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More about TIRA
TIRA is an aligned network of quality mobility service providers. The network provides access to leading mobility experts from around the world that provide local solutions to global challenges. Network members exchange best practices and share this value with the industry through benchmarking exercises.

Website: www.tiranetwork.org
Twitter: @TIRAORG
LinkedIn: The International Relocation Associates (TIRA)
Facebook: The International Relocation Associates (TIRA)