Paris Times

Liberté, Égalité, Fraternité
Tuesday, Jul 01, 2025

Rise in Unpaid Rents Sparks Urgent Calls for Regulatory Change in France

Rise in Unpaid Rents Sparks Urgent Calls for Regulatory Change in France

With unpaid rents averaging 3.5%, property owners urge for new regulations to protect their interests amidst rising tenancy challenges.
In France, the average rate of unpaid rents has reached approximately 3.5%, a figure that, while stable over the past year, has demonstrated a continuous increase over the last two decades.

Property owners are increasingly vocal about the need for a new regulatory framework to alleviate tensions between landlords and tenants, which they believe has been exacerbated by the current economic climate.

The situation is reflected in the experiences of many private landlords, including Éric, a small business owner who invested in a rental property in Élancourt, Yvelines, five years ago.

His intention was to generate income to supplement his retirement.

After receiving over sixty applications for tenancy, he selected a candidate who appeared financially stable, only to face unpaid rent just three months later, an issue that has persisted for over a year.

Attempts to contact the tenant have yielded no responses, leaving Éric at a loss regarding the circumstances surrounding her inability to pay.

According to recent official data, the increase in unpaid rents can be partly attributed to a mix of unexpected personal circumstances affecting some tenants, alongside a growing number of what landlords refer to as 'bad payers.' The phenomenon is prompting calls for significant reform to the current framework governing private tenancy, which many landlords feel inadequately protects their interests.

Prime Minister François Bayrou highlighted the urgency of the situation in a recent address, framing a renewed focus on stimulating rental investments as crucial to easing the existing rental market pressures.

Housing Minister Valérie Létard has echoed this sentiment, announcing the initiation of a 'flash mission' aimed at reevaluating the status of private landlords, with recommendations anticipated by 2026. This mission aims to legally recognize the economic role of private property owners, moving beyond the perspective that they are merely profiteers.

Charles Marinakis, President of Century 21 France, advocates for this reevaluation, arguing that current public policies disproportionately position landlords as adversaries to tenants.

The concept of establishing a more formalized status for private landlords is not new, with earlier proposals dating back to 2008 from the Fédération Nationale de l'Immobilier (FNAIM) aimed at simplifying and professionalizing private investments in real estate.

Proposed solutions include allowing property owners to amortize their investments, akin to practices observed in other European countries.

Such measures would enable landlords to deduct property depreciation from their taxable income, thereby alleviating some of the financial burdens inherent in maintaining rental properties, particularly in instances where tenants fail to fulfill their rental obligations.

Currently, yield rates for rental properties are reported to hover around 2% to 3.5%, which, according to Marinakis, makes investment in rental real estate less appealing compared to potential stock market returns.

He emphasizes the need for rental yields to reach approximately 5% to encourage private landlords to remain active in the housing market.

The Federation of Property Developers (FPI) has similarly pushed for revised regulations to promote secure and professional private investment within the housing sector, especially as it grapples with a near 6% decrease in sales as of 2024. For the first time in a long while, investor participation in the private rental market has declined from about 30% to roughly 25%, impacting the sector's ability to sustain adequate levels of new construction.

Sylvain Grataloup, President of the Union of Property Owners, has pointed out that criticism of private landlords overlooks their significant role in housing, as they provide accommodations for around 70% of tenants.

He notes their substantial economic contributions, including over €1.4 billion invested in renovation work and various transactional costs.

Grataloup has also proposed the elimination of the winter eviction moratorium that limits landlord actions against non-paying tenants during the colder months.

He argues that this policy incentivizes tenants to delay necessary rental payments.

He stresses that the responsibility for supporting those unable to pay rent should rest with the state, rather than the property owners.

The plight of landlords like Éric illustrates the complexities and challenges of managing rental properties amidst increasing economic pressures.

Following a recent court ruling favoring his eviction request, he faces further delays, as national laws prohibit eviction actions until after March 31 and may involve appeals from the tenant.

The potential for further complications leaves many landlords in a precarious position, anxious about the condition of their properties and the financial implications of prolonged tenant disputes.
Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
UK Scientists Launch Synthetic Human Genome Project with £10 Million Funding
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Thai Prime Minister Discusses Bilateral Relations and Regional Issues with French President Emmanuel Macron
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Juncker Criticizes EU Inaction on Trump Tariffs
France Bars Israeli Arms Companies from Paris Defense Expo
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Germany Holds First Veterans Celebration Since WWII
64th Monte-Carlo Television Festival Opens with Global Talent and Premieres
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
UK and EU Reach New Economic Agreement
Sole Survivor of Air India Crash Recounts Escape
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
×