• MMC

Talent Relocation in France: The Strategic Role of Guarantors in an Evolving Rental Market

The French rental market has experienced strong competition for several years, particularly in major cities and so-called “tight” zones. This situation, widely discussed in real estate news, is now further reinforced by significant regulatory changes related to the energy performance of housing.

For companies recruiting or relocating talent to France, these changes have a very tangible impact on housing access, move-in timelines, and, more broadly, the employee experience. In this context, the question of the guarantor emerges as a key element to anticipate.

A regulatory framework reshaping the rental market

Since 2025: a more selective rental supply
Since January 1, 2025, properties rated G under the Energy Performance Diagnosis (DPE) are considered non-decent and can no longer be offered for rent, in accordance with the Climate and Resilience Law.

This measure has mechanically reduced the available rental stock, particularly in urban areas already under high demand. With a more limited supply, landlords receive more applications and pay closer attention to the solidity of tenant files.

In this context, having a guarantor is increasingly seen as an essential security lever.

From 2026: expected changes to the DPE calculation method
A new stage is planned for January 1, 2026, with a revision of the DPE calculation method. The government has decided to adjust the electricity conversion factor from 2.3 to 1.9 to better reflect the reality of France’s largely decarbonized energy mix.

This change aims to correct the penalization of certain properties heated by electricity or equipped with heat pumps. According to official estimates, around 850,000 properties could move out of classes F or G without any work, and no property will see its rating worsen due to this reform.

In the medium term, this evolution could restore visibility to part of the currently constrained rental stock. In the short term, however, selectivity remains high, and landlords’ requirements continue to be stringent.

Why is a guarantor so often required in France?

The requirement for a guarantor may seem surprising, especially for employees with stable contracts and comfortable income levels. Yet, it is based on mechanisms specific to the French rental system.

1. A financial security tool for the landlord
   A guarantor is an individual or legal entity that contractually commits to pay the rent and charges in case of tenant default.

French rental law strongly protects tenants. In the event of unpaid rent, legal procedures can be lengthy for landlords. A guarantor therefore serves as a mechanism to secure rental income, particularly valued in a competitive market.

2. A response to increasingly mobile career paths
   Even with a solid application, a tenant’s situation can evolve:

• probation period or job change,

• separation or personal events,

• early end of assignment,

• unexpected return abroad.

For landlords, a guarantor helps anticipate these situations and limit their exposure to risk.

3. A reinforced selection criterion in high-demand areas
   In Paris, Lyon, Bordeaux, Lille, or certain border areas, demand far exceeds supply. Landlords often receive multiple applications for a single property.

In this context, having a guarantor becomes a decisive selection criterion, on par with income level, professional stability, or rental history.

4. A common obstacle for international talent and newcomers
   For expatriates, impatriates, or recently relocated employees in France, several factors can complicate access to housing:

• no French rental history,

• recent employment contract or ongoing probation period,

• income earned abroad,

• unfamiliarity with local practices.

A guarantor can then compensate for the lack of local references and reassure the landlord.

5. Guarantor vs. rent guarantee insurance: a landlord’s choice
   The landlord can opt for either a guarantor or rent guarantee insurance (GLI). Many landlords prefer a guarantor because it is simple to set up, incurs no monthly cost, and relies on a direct commitment.

In principle, these two systems are not cumulative, except in specific cases, notably for students.

6. Increasingly used alternatives
   When an employee does not have a personal guarantor in France, several solutions exist:

• Visale, a free public scheme under conditions,

• private guarantees (Garantme, Cautioneo, Smart Garant, etc.),

• employer-provided solutions within professional mobility programs.

These mechanisms now play a key role in facilitating access to housing, especially for international profiles.

A challenge for companies and HR to anticipate

In a rental market marked by successive regulatory changes and increased competition, the guarantor has become a structural element of the housing journey in France.

For companies, anticipating this requirement allows:

• securing move-in timelines,

• limiting bottlenecks upon arrival,

• improving the employee experience,

• ensuring a smooth start of employment.

At MMC, we support companies and their international talent by integrating market realities and regulatory changes from the early stages of mobility planning.

Our goal: to turn a complex environment into a smooth, secure, and efficient housing journey.