LMNP: a solution for problematic tenants

The Duflot bill continues to worry landlords already disadvantaged by laws they consider largely biased in favour of tenants. Despite the announcement of mandatory protection against unpaid rent, landlords say they are alarmed by the legal conditions that are constantly favourable to tenants, even in cases of unpaid rent.

Several complaints have been filed over the last three months against the Housing Minister, Cécile Duflot, by highly frustrated landlords. These complaints are proof that there is an imbalance between the rights of the landlord and those of the tenant. Indeed, in the case of unpaid rent, the landlord is often in an inferior position since housing is not considered a standard consumer good. As such, the law will do everything to avoid eviction, all the more so in a context of economic and social crisis like the one we are currently experiencing. Consequently, according to lawyers, these complaints are unlikely to lead to anything.

It should be noted that the case of unpaid rent remains fairly minor in France and is often linked to life events (divorce, illness, disability, unemployment…). Thus, arrears represent only 2 to 2.5% of all rent received. Yet, nearly 90% of cases brought before the courts concern arrears, and the judiciary rules in favour of the landlord in 97% of cases.

However, the law is not so advantageous for landlords since, in the case of lease termination accompanied by eviction, the tenant can still request an additional delay of up to one year before having to leave the premises. Thus, an eviction always takes several months, and can be even longer if carried out during the winter eviction ban.

A solution: non-professional furnished lettings

For some time now, private individuals looking to invest in property have been turning to non-professional furnished letting properties. Indeed, this type of property is very advantageous for all those who want to secure long-term income and enjoy an interesting tax status. Indeed, purchasing a property under the LMNP scheme allows you to build up a pension savings pot and protect your family from need, without having to worry about its maintenance.

But in addition to these financial advantages, the LMNP status allows landlords to avoid the various problems that can be caused by rental management (finding a tenant, inventory reports, disputes with the tenant…). Thus, the operation of the property is entrusted to a management company.

To avoid any conflict or problems such as unpaid rent, it is therefore essential to choose a serious and competent management company. It is the latter that completely takes charge of the administrative tasks related to rental management. Consequently, the landlord does not sign a contract with the tenant; it is the contract (a commercial lease of 9 to 11 years, renewable) signed with the management company that protects them.