A new law in France, known as the SVE law, has introduced significant changes to how payment deadlines are granted to tenants and how rental guarantees are handled. The law requires that any payment deadlines or the suspension of eviction notices for non-payment of rent are only possible if the tenant can show they have the financial means to settle their debt and have resumed full payment of the current rent before the first court hearing. This change was made by amending article L145-41 of the Commerce Code, which previously allowed judges more flexibility in granting deadlines based on the tenant's situation and the landlord's needs. The new provision limits the judge's discretion, requiring two conditions to be met: the tenant must demonstrate financial capacity to pay the debt and must have resumed full rent payments before the hearing. The law also introduces a limit on rental guarantees, capping them at one quarter of the monthly rent. This applies to commercial leases for premises used for retail, wholesale trade, or commercial and artisanal services. The cap applies to leases signed or renewed from 26 May 2026. There is some uncertainty about whether the cap applies to all combined guarantees or individually to each guarantee. While the law's background suggests a total cap, the exact interpretation remains unclear. Any agreement that exceeds the cap may be considered invalid, which could lead to the entire guarantee being nullified. The law sets clear legal deadlines for the return of rental guarantees. The deposit guarantee must be returned within three months of the tenant handing over the keys, while other types of guarantees must be returned within six months. These rules apply to ongoing leases when the keys are handed over from 26 August 2026. If the property is transferred to a new landlord, the obligation to refund guarantees is passed on to the new owner. However, if the transfer involves guarantees other than the deposit, those guarantees might expire, which could be an important consideration during property sales. The law also clarifies that the deposit guarantee cannot be used to cover unpaid rent during the lease unless explicitly agreed upon in the contract. The law aims to protect tenants' cash flow by regulating how guarantees are used, returned, and transferred, while also holding tenants who fail to pay their rent responsible for resuming payments and proving their ability to settle outstanding debts. Some aspects of the law, such as the exact scope of the guarantee cap and the lack of penalties for late refunds, could lead to legal disputes.