In 2025, faced with the increase in unpaid rental payments and new legal obligations (Housing Development Act), the unpaid rent guarantee (GLI) secures the income of landlords by covering rents, charges and litigation costs.
What is the unpaid rent guarantee?
GLI is an additional contract to your non-occupant owner insurance (PNO) which covers:
- Unpaid rent and charges (ceiling often > €15,000/year)
- Legal fees (bailiff, lawyer, procedures)
- Litigation assistance in the event of a dispute
In exchange for an annual premium of 2% to 4% of guaranteed rents, you transfer the unpaid risk to the insurer.
1. Increased risk of non-payment
- Financial pressure : inflation, energy costs
- Tenant profile : young workers, students, precarious workers
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Length of procedures : 12 to 18 months to obtain an expulsion
Without GLI, a single month of unpaid bills can weaken your cash flow and even impact your borrowing capacity.
2. New legal obligations in 2025
The ELAN law strengthens the fight against substandard housing and imposes:
- Systematic verification of the tenant's solvency (last 3 pay slips or third-party guarantees)
- Obligation to inform the tenant of the guarantees subscribed
- Increased liability of the lessor in the event of failure to implement a GLI
These measures increase your financial exposure if you are not covered.
3. Key benefits of GLI
Financial security
Rapid compensation for unpaid rent from the first month, without waiting for a court decision.
Procedure costs covered
- Bailiff and lawyer fees
- Costs of observations (inventory, inventory)
- Prosecutions and relocation costs
Legal support
Dedicated experts guide the lessor through each stage of the dispute, facilitating the reintegration of the premises.
4. Subscription conditions and advice
- Tenant selection : rigorous verification of the file (income ≥ 3× rent).
- Guarantee ceiling : choose an amount covering 12 to 24 months of rent.
- Possible deductible : often 1 month's rent (to be negotiated depending on the profile).
- Annual renewal : update rents and check tenant file.
5. Alternatives and additional options
In addition to GLI, consider:
- Bank guarantee or Visale guarantee for young people
- Separate legal protection for disputes not covered by GLI
- The tenant's multi-risk home insurance to cover damage and liability
Conclusion
In 2025, unpaid rent insurance is essential for any landlord concerned about securing their income and complying with new legal obligations . By taking out suitable GLI insurance, you limit your risks, transfer litigation costs to the insurer and ensure the sustainability of your investment.
KT Assur&Bank helps you choose your contract, check your tenant file and manage claims for complete peace of mind.