The most important changes to tenancy law in brief
Published: Tuesday, Oct 8th 2024, 16:00
Updated At: Tuesday, Oct 15th 2024, 16:00
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On November 24, voters in Switzerland will decide on two changes to tenancy law that are being fought with a referendum. The amendments to the Code of Obligations concern the subletting of apartments and terminations for personal use. Below is the most important information on the two proposals:
The initial situation
Anyone who has rented an apartment or business premises can sublet them under current law. Today, landlords can only refuse if the main tenant sublets the premises for an excessive price, if the landlord has to accept a disadvantage - such as noise - or if the main tenant does not inform the landlord of the conditions of the sublet. The main tenant must also inform the landlord who is moving into the rooms as a subtenant.
The second template concerns termination for personal use. After purchasing a property, the new owner can terminate a tenancy agreement taken over from the previous owner prematurely with a longer notice period if they claim urgent personal use, for themselves or for close relatives. In the event of a legal dispute with landlords, tenants are also protected from so-called revenge terminations during the proceedings and for a certain period afterwards; however, termination is possible in the event of urgent personal use. Own use also plays a role in tenant evictions in cases of hardship.
What the templates bring
The amendments to the Code of Obligations were not drawn up by the Federal Council, but by Parliament. The Federal Council originally felt that neither bill was necessary.
First of all, there are stricter requirements for subletting. Tenants will now have to submit a written application for a sublet and landlords will have to agree to the sublet in writing. Changes of subtenant must also be reported. If the rules are not complied with, notice of termination can be given within at least 30 days. Furthermore, rooms may only be sublet for a maximum of two years, and landlords can also refuse subletting for reasons other than those that already apply today. The law leaves the door open to this.
The conditions for exceptional terminations due to "urgent" personal requirements are to be specified: For a termination, the asserted personal use should be "significant and current when assessed objectively". Courts would now have to base their assessment on this wording.
What the supporters say
The housing shortage and the renting out of living spaces on platforms such as Airbnb encourage abuse in subletting, argue the proponents. Landlords and tenants could still agree additional subletting options and formulate conditions, such as allowing rooms to be sublet for more than two years.
With the new provisions on registering personal use, Parliament wants to ensure that rented premises can be used by tenants themselves more quickly than is currently the case after purchasing a rented property. In the eyes of the proponents, the fact that landlords must continue to be liable for damages incurred by tenants as a result of premature termination puts the impact on tenants into perspective. Tenant extensions also remain possible, and terminations due to personal use after a new transfer can be contested as before.
In parliament, the SVP, FDP and the majority of the center said yes to both amendments to tenancy law. The GLP only approved the new rules for claiming personal use.
What the opponents say
An alliance led by the Tenants' Association is fighting the changes to the Code of Obligations with a referendum. Opponents see the proposals as an attack on tenant protection and as "eviction proposals" that serve to increase yields.
On the one hand, there is unnecessary harassment and restrictions for tried and tested subletting. Tenant protection is being weakened without need, because tenants can be dismissed for minor violations in connection with subletting. The restrictions would affect hundreds of thousands of people, from students in shared apartments to senior citizens who wanted to sublet a room in their overly large apartment. Abuses could already be combated today.
The opponents argue that personal use is already being used as an excuse to evict tenants and then re-let rooms for more money. Tenants are less well protected against extraordinary terminations due to the landlord's own requirements.
In parliament, the SP and the Greens rejected both bills. The GLP said no to the stricter provisions on subletting.
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