Governed by Articles 253 to 274 of the Swiss Code of Obligations (CO), the rental contract specifies not only the amount of rent and the description of the dwelling, but also the conditions for maintenance, termination, or contestation. Here is what you need to know to master Swiss tenancy law:
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The preliminary steps before signing a lease: form, duration, rent, security deposit.
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The rights and obligations during the term of the lease: maintenance, payment, subletting.
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The end of the lease, its termination rules, and available means of contestation in case of notice or abusive rent.
Concluding the Rental Contract
Before any occupancy, the rental contract must be clear for both the tenant and the landlord.
The Forms and Content of the Contract
First, the rental contract may be concluded orally, in writing, or by conclusive (implicit) conduct. Indeed, federal law does not formally impose the written form for a lease to be valid.
However, although an oral lease is legal, it is strongly discouraged in practice, as proving the clauses of the contract (rent amount, duration, termination, etc.) becomes much more difficult in case of dispute. We therefore recommend having a written document signed by both parties.
Regarding duration, a distinction is made between the fixed-term lease, which ends automatically at its expiry date, and the open-ended lease, which is tacitly renewed unless notice is given.
Finally, the rental contract must necessarily describe the rented object (dwelling, premises) and mention any annexes (parking space, cellar, outbuildings) in order to clearly define the agreed use.
The Rent and Its Ancillary Costs
In most cantons, the tenant has the right to request the official rent-setting form, where applicable, in order to verify that the rent is not abusive.
This is an official and standardised document approved by the canton, which the landlord is obliged to give to the new tenant when concluding the lease in regions considered to be experiencing a housing shortage (Art. 270 para. 2 CO). This form aims to ensure transparency and inform the tenant, in particular:
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of the rent paid by the previous tenant;
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of the specific reasons justifying any rent increase compared with the previous rent (for example, renovations or adjustment to the reference mortgage rate).
Regarding ancillary costs, the landlord must prepare an annual statement of the charges (heating, hot water, communal services, etc.) when these are borne by the tenant.
The Rental Security Deposit
In Switzerland, the maximum amount of the rental security deposit for residential property is limited to three months’ net rent.
This deposit must be placed in a blocked bank account in the tenant’s name (or according to the arrangements allowed by the canton) and cannot be used without justification.
When the lease ends and all the tenant’s obligations are fulfilled (full payment of rent, proper return of the rented object, etc.), the deposit must be returned, or any deducted amount properly justified, within a reasonable period.
Rights and Obligations During the Lease
During the term of the lease, both the landlord and the tenant must comply with a set of rules intended to ensure proper performance of the contract.
The Landlord’s Obligations
The landlord must deliver the property on the agreed date and in a condition suitable for the agreed use. The landlord is also responsible for maintaining the property and ensuring that its use remains compatible with the intended purpose.
This maintenance obligation notably includes repairing or replacing defective installations when the cause is not normal wear and tear or the tenant’s behaviour.
The Tenant’s Obligations
The tenant, for his part, undertakes to pay the rent under the agreed terms.
Late payment may lead to consequences such as debt collection proceedings or extraordinary termination of the lease.
The tenant must also use the property with care, ensure routine maintenance, report defects to the landlord, and respect the neighbours’ peace.
Finally, the tenant must tolerate necessary renovation or maintenance work announced in due time by the landlord; in case of significant disturbance, a rent reduction may be justified.
Subletting and Assignment of the Lease
In principle, the tenant may sublet all or part of the dwelling with the landlord’s consent, unless serious reasons justify refusal (unlawful use, overcrowding, etc.).
However, one essential condition must be met: the rent requested from the subtenant must not be abusive compared with the main rent and market conditions.
Furthermore, the tenant remains responsible towards the landlord as long as the main contract has not been transferred or modified.
Termination and Extinction of the Lease
The end of a lease may occur through ordinary or extraordinary means; the rules aim to ensure balance and protection for both parties.
Ordinary Termination
For an apartment, the notice period is generally three months, unless otherwise specified by contract or canton.
To give notice, the tenant must submit the request in writing by means of a properly signed termination letter, and the landlord must use the official form in cantons where this is required.
Extraordinary Termination
The landlord may terminate the lease by law and unilaterally when the tenant does not or no longer fulfils his obligations. For example, this is possible in case of non-payment of rent after a written reminder granting a 30-day deadline.
Similarly, repeated disturbances, unlawful use of the rented object, or misconduct may justify immediate termination of the lease.
Early Return and Substitute Tenant
The tenant may leave the premises before the contractual end date if he presents a solvent new tenant who is accepted by the landlord and willing to take over the lease under the same conditions.
In this case, the tenant is released from obligations as soon as the new lease is signed or if the refusal occurs without valid reason.
Swiss Tenancy Law: What Remedies Are Available in Case of Dispute?
Swiss legislation offers protections to the tenant, particularly against abusive rents and unjustified notices.
Protection Against Abusive Rents
The tenant’s right to contest a rent increase or an abusive initial rent is recognised: the tenant may refer the matter to the competent conciliation authority.
Grounds for contestation include: excessive return for the landlord, unjustified increase, or an initial rent excessively high compared with comparable rents.
Contesting the Notice of Termination
The tenant may contest a notice of termination deemed abusive or invalid, for example in the case of retaliatory eviction. The deadline for submitting the contestation to the conciliation authority is 30 days from receipt of the official notice form.
The Conciliation Authority and the Tenancy Court
Referral to the conciliation authority is a mandatory and free step before any legal action. If conciliation fails, the case may be brought before the competent court.
In summary, Swiss tenancy law provides a solid framework of protection for both tenants and landlords. To take full advantage of it in the event of a dispute, it is advisable to act quickly and contact the relevant authorities whenever doubt arises.