The first factor for a property owner in Switzerland is securing the rent payment. For this purpose, an important element is the provision of an employment contract concluded with a Swiss employer for the owner. In the absence of an employment contract, it is often sufficient to provide documents confirming the possession of assets. In many cases it is very helpful to show confirmation from the former landlord that the rent was paid on time. Sometimes it may be enough to officially confirm that there are no debts.
The lease agreement consists in the consent of the landlord to give the property for use in the manner provided for in the contract. The tenant's obligation is to pay the landlord the fee specified in the contract.
Swiss law does not impose any particular form of conclusion of a lease agreement. The practical conclusion from this is that the lease can be concluded orally. At this point, it should be emphasized that compliance with the written form may turn out to be very important for both the landlord and the tenant for evidence reasons.
Swiss law requires a certain minimum range of provisions that must be included in the contract. In addition to the parties to the contract, this minimum set of provisions must contain information on the specific subject of the lease that the landlord is transferring to the tenant for use. It should be noted here that, in addition to an apartment or a house, it can also be, for example, an attic room or a basement room.
The parties to the lease agreement should also pay special attention to the aspects relating to the payment of rent and any additional charges. A common practice in Switzerland is to agree on a monthly net rent with additional accompanying costs (such as for example hot water or heating). The issue of additional fees is important because if they are not regulated in the rental agreement, they are considered to be included in the rent. In the event that the costs of the accessories are to be paid separately, this can be either one-off or "on account" (in German "akonto",as an advance payment). In the latter option, the landlord should prepare a list of additional charges once a year and depending on the balance result, the lessee should receive a refund or will be required to pay a specific amount. We recommend that everyone carefully check the statement of fees for accessories. It is important here that the tenant always has the right to the landlord to view a detailed list, as well as bills and other documents in this regard.
While not a necessary element, it is common, the practice of a tenant paying a deposit to protect the landlord's interests. As a standard, the deposit should be deposited on a blocked bank account kept in the name of the tenant. The deposit when renting a flat cannot exceed the amount of three months' rent. As for commercial premises, Swiss law does not provide for such a limitation and the parties to the contract have more freedom here. If, after the period for which the lease was concluded, there are no arrears in rent payments, no damage to the leased object or its excessive wear, the deposit must be returned to the tenant.
2.1 Fixed-term and unlimited lease
When concluding a lease contract, the parties to the contract may, by negotiation, determine the period for which the contract is concluded. It is considered that the lease agreement was concluded for a specified period, when it ends without notice at the end of the period of time agreed by the parties or on a specific date. Simple termination of the contract is neither necessary nor possible, as the rental ends automatically after the agreed duration or the date agreed by the parties. The second type of lease is unlimited lease. This type of lease agreement is concluded without a specific end date. In this case, the owner or tenant must notify the other party in order to successfully bring the obligation to an end.
It is important that in Switzerland there is a legal presumption, which means that if the parties do not indicate any specific date for which the lease agreement was concluded, it is assumed that it was concluded for an indefinite period.
2.2 Ordinary Notice of Termination: Deadlines and Dates
A lease agreement concluded for an indefinite period may be terminated with the statutory notice periods. Swiss law provides for two cases here. One concerns the termination of a contract for a residential premises, and the other for a business premises. There is a three-month notice period for a dwelling within Swiss law. As for the termination of the lease, the subject of which was a business premises, this period is six months. The competent conciliation authority can be contacted to find out which termination dates are customary in the respective area.
Swiss law allows the parties to be free to conclude contracts that deviate from the statutory provisions. However, the statutory notice periods (three or six months) are the minimum periods which may not be shortened by the parties in the concluded contract.
The termination is a declaration of will that is effective from the date of delivery to the other party to the contract and only from then on has legal effects. For effective termination of the contract, it is not sufficient if it is sent on the last day before the commencement of the notice period. If the notice is not delivered to the other party by the end of the calendar month, it will not take effect until the next possible date of termination.
2.3 Extraordinary Termination
In the Swiss legal system, there is the institution of extraordinary termination of the contract, which is characterized by shortened notice periods. This procedure occurs, for example, when the tenant does not pay the landlord the rent (despite the grace period and the threat of termination) or in the event of a breach of the duty of care, etc. It is important here that the fulfilment of the conditions for extraordinary termination is always considered on a case-by-case basis.
2.4 Form of Termination
The termination of the lease must always be made in writing. For evidence reasons, it is advisable to terminate the notice by registered mail. The Swiss legal order requires that the termination of the lease of family premises in which the spouses or registered partners reside be signed jointly by both persons.
The landlord must terminate the tenancy agreement in any case using a form approved by the canton concerned. Otherwise, the termination is invalid and has no legal effects.
2.5 Challenge of the Termination and Extension of the Lease
A good faith termination of a lease contract occurs, for example, when the landlord terminates the contract because the lessee has entered into the contract only to check the supplementary charges account or has requested a reduction in the rent due to a reduction in the reference interest rate immediately after conclusion of the contract. The contract terminated by the lessor in this manner may be challenged by the lessee within 30 days.
It is also possible that the tenant is entitled to request an extension of the lease. Under the Swiss legal regime, the maximum extension of a lease contract is four years for residential premises and six years for commercial premises.
In the event that the tenant finds that the rented property has defects, he / she is entitled, inter alia, to ask the landlord to remove the indicated defects within a reasonable time. The tenant may also demand a reduction in the rent amount until the defects are removed. If the landlord does not fulfill the obligation to remedy the defects, Swiss law provides for the possibility of paying the rent to the authority designated by the canton. However, for the rent to be considered paid, the legal conditions must be met. In such a situation, the tenant is always advised to contact a conciliation body or a lawyer.
The fact of a defect in the rented property must always be examined in each individual case. The most common disadvantages of a rented property are, for example, too low or too high temperature or noise emissions caused by external factors. The tenant should immediately notify the landlord by registered letter of this state of affairs.
When picking up the apartment, it is very important to draw up a protocol, which should include a description of the condition of the leased property. In the event of failure to take care of the preparation of the apartment acceptance protocol, the tenant is exposed to potential claims from the landlord.
The tenant has the right to sublet a partially or fully rented property only with the consent of the landlord. The landlord may refuse consent only for specific reasons. This could include, for example, situations where the landlord experiences significant inconvenience due to subletting or where the terms of the sublet are abusive.
Pursuant to Swiss law, the tenant may return the subject of the lease without the statutory notice periods, provided that he proposes to the landlord a reliable entity that will be the tenant's legal successor. The substitute must be solvent and must expressly wish to replace the existing tenant under the same conditions. Also in this case, the fulfilment of the conditions for an effective change of tenant must be assessed in each individual case.
If certain specific conditions are met, the tenant is entitled to contest the rent agreed in the lease. To make it possible, the tenant has only 30 days from taking possession of the subject of the lease. The tenant should be aware that he should not pay a significantly higher rent than the previous tenant who used the same subject of the lease for no reason. In cantons such as Zurich or Zug, the landlord must inform the tenant of the terms of the contract with the previous tenant using the official form.
An important element of Swiss rental law is that in the event of litigation between the tenant and the landlord, the tenant can turn to the authorities. The conciliation body in matters of lease and tenancy at the place of lease is always the authority designated by the law of the canton. As a rule, at a conciliation hearing, the body tries to resolve the dispute amicably between the parties. The conciliation body does not charge a fee for conducting the conciliation procedure. If the dispute between the parties is not resolved through conciliation, the case may be brought to court
Our team from the rental law department will provide you with their knowledge and commitment in the area of all issues regarding the choice of Switzerland as a new center of life and business interests. We look forward to hearing from you.
