Lease termination conditions

Question :

We are currently looking to rent a house in Basel and the landlord is asking for a minimum term of 3 years and, after that, a requirement that we give notice at least one year prior to vacating the premises. We think that this is extremely aggressive but really want the house. Are the terms proposed by the landlord even enforceable?

Answer :

The standard lease term in Switzerland for an accommodation is one year with a 3 or 4 month termination period. However, it is not unusual to see longer lease terms, especially for houses. There may be several reasons for this.

One is that expats tend to stay in a home for shorter periods of time nowadays: they are either sent on another assignment abroad after one or two years, or they tend to turn towards buying a home if they stay in Switzerland.

Often, the owner himself may be going abroad for several years and he may wish to ensure that his home will be rented out during the whole duration of his expatriation.

A lease can also be of drawn up for three years if the owner has decided on a progressive rent (example: the first year’s rent could be set at 3,000 francs per month, the second year at 3,250 francs and the third year at 3,500 francs. In this case, the minimum lease term is three years for this to be legal.

The danger of signing a three-year lease with a one year termination period is of course in the event that you wish to leave earlier than the three-year term. You may break the lease at any time with a one-month notice period, however you must find a replacement tenant who is willing to rent under the same conditions.

In some cantons, owners are willing to add some type of “diplomatic clause” which would authorize you to give a shorter notice period during the duration of your lease, in the event that your employer sends you abroad, or that you are move outside the canton.

If the owner is not willing to add this type of clause, it would be important that he or she at least shortens the renewal period, as well as the termination period for the second term of your lease. So after the first three years, the lease would automatically be renewed on a yearly basis with a 3-4 month termination period.

Tenant's obligation to maintain his/her accommodation

Question :

I have just moved into a house and wish to know what a tenant’s responsibilities and obligations are to maintain the house in good conditions.

Answer :

The rental lease contract and rules and regulations that you received with your lease enumerate a certain number of responsibilities and obligations a tenant has to maintain the accommodation during the whole duration of the lease.

Here are a few :

If there is a fireplace, it must be swept once a year. The chimney sweep will leave a reminder note in your mailbox about a week before his round.

If you are renting a house, the heating installation must also be maintained. The owner usually provides the tenant with the names of the companies to contact, along with a copy of the contracts. It is wise to keep the same maintenance contracts, as they are usually contracted with the same companies that initially installed the heating system in the house.

The boiler must be descaled regulary (every two years) and the furnace should be checked every year.

If you have oil heating, check the levels in August or September, and have the tank filled if it is less than a quarter full. This can be done all year round but prices vary (more expensive in winter). Be sure to never let the tank empty completely, as it may be very costly if the heating needs to be restarted. If you plan to be away during the cold season, be sure your heating system is set at a minimum temperature of 15/16° Celcius.

Outdoor water pipes should be drained and closed off from the main supply, to prevent freezing and related damage. Repairs are also costly.

Maintenance of a garden or terrace is usually at your expense, unless otherwise stated in your lease. The owner however, is responsible for pruning trees. If the premises are not maintained well, the owner will have the work done by a professional gardener and send you the invoice!

Be sure to read through your rental contract thoroughly, other obligations may also be stipulated, especially when renting a villa – for example, maintenance of roof and gutters. In these cases it is highly recommended to have a specialized company come once a year before the winter months.

There may be other maintenance requirements listed in your lease due to the quality of certain materials: for example a delicate kitchen worktop, parquet flooring or tiles may hold potential costs.

Finally don’t forget that, apart from normal wear and tear, the tenant is responsible for maintenance and general repairs or damage. Here are a few examples:

  • Regularly ventilate all the rooms by opening all the windows for 5 to 10 minutes daily, to avoid excess humidity.
  • Maintain floors and woodwork. Damage caused by high heels or laying carpets, for example, is considered to be damage for which the tenant is responsible.
  • Replace damaged plugs.
  • Replace worn roller blinds and sunshade cords.
  • Lubricate door locks, hinges and bolts, windows, blinds, sunshade frames.
  • Maintain sanitary installations, household appliances, electric plugs and cables.
  • Unblock drains as far as the main outlet pipe, clean and unblock balcony and terrace drains.
  • Replace anti-splash nozzles, tubes and fuses.
  • Replace changeable ventilation filters.
  • Remove snow and ice from balconies, terraces and window sills.
  • Replace broken or damaged windows.
Application for accommodation turned down

Question :

I have just arrived in Switzerland and have been searching for an apartment for several months, but every time I send an application to a real estate agency, I am turned down, even though I was the first to visit some of the apartments.

Answer :

In general, there is an extreme shortage of accommodations for rent in Switzerland and agencies are overwhelmed with applications. There may be as many as 40-50 applications for a single accommodation.

Here are a few tips that may help :

If you see an accommodation in the local paper or on the internet (homegate.ch, immostreet.ch, anibis.ch, etc…), make sure to call the agency before making an appointment with the actual tenant to visit. There may already be a lease sent out to a potential tenant; however, as long as the lease is not returned signed, the accommodation will continue to be advertised. This may avoid unnecessary visits.

When you apply for the accommodation, be sure to have all the relevant documents available for the agency : valid work permit if you are not Swiss, copy of your passport, “extrait des poursuites” (a document proving that you are debt free and are not wanted by the police), past three months pay slips or a letter from your employer stating your salary, copy of your third party liability household insurance form if you already have one. If applicable, the same information for your spouse/partner should also be available. If the lease is to be in the name of the company employing you, a copy of the Registry of Commerce should also be available.

If you are the first person to visit an accommodation, please remember that in Switzerland, it is not always first come first serve. The real estate agency may or may not have the authority to choose the tenant. Many times, the owner wishes to see the applications and choose for himself.

In terms of rent, be sure that you are not applying for an apartment that is too high or too low for your salary. The rent should not exceed ¼ to 1/3 of your salary. Likewise, your salary should in general not exceed 3-4 times your rent… An agency/owner may prefer to rent an accommodation to someone who falls into that category and who could not afford a more expensive accommodation.

If you are single or are a couple with no children and you are applying for a large accommodation (4 rooms or more), the agency /owner may prefer to rent it out to a family with children.

Swiss usually don't own their properties

Question :

Why is it that Swiss never seem to own their properties outright in Switzerland?

Answer :

It is true that only approximately 30% of Swiss actually own their homes. This is one of the lowest in Europe . . . Countries such as Italy, Austria and France average between 50 and 60%. Overall in Switzerland, the difference is marked within the cantons; there are more owners in the small towns, country and rural areas where there are more properties available, compared to larger cities. The following reasons are among the probably causes why there are so few Swiss owners :

  • Little public aid to acquire property
  • There are very few tax advantages
  • Difficulty to find personal funds for the average revenue
  • Shortage of offers and very little land available
  • Not many accommodations for resale. Most of the properties for sale are new or sold by plan
  • The building price is very high
  • The quality of rental accommodations in Switzerland is relatively high. To become an owner often means lowering one’s standard
  • The acquisition of condominiums was not allowed from 1912 to 1965 but has been developing in Switzerland ever since then. This has of course opened the market to the average revenue, as until then, the acquisition of property was virtually impossible. In Switzerland, the percentage of condominiums is now approximately 5%.
The number of Swiss owners is progressing at a rate of approximately 0.5% every year… Several surveys have been carried out over the last few years, the most recognized being by the EPFL, which has been published in several prominent magazines, such as Bilan.