Re-letting your apartment: what does it involve?

Several reasons can lead a tenant to need to terminate their lease before it ends: a new job, the need to move to cheaper or larger accommodation, unforeseen events... In such a case, the tenant is obliged to re-let their apartment, i.e., find a new tenant. Sherlock Holmes explains how to terminate your lease early in Switzerland.

 

Early lease termination in Switzerland

In Switzerland, early lease termination is possible, as long as it is in compliance with the Code of Obligations. In legal terms, we refer to it as "early restitution" According to article 264 of the Code of Obligations, tenants can release themselves from their obligations towards the property owner by offering a replacement tenant. The latter must be solvent and cannot be reasonably refused by the property owner The replacement tenant must also agree to take over the lease under the same conditions. If the outgoing tenant does not comply with these relocation rules, they must continue to pay the rent until the expiry of the lease term or until the next term of contractual or statutory leave.

 

Early termination of your lease: how to proceed?

If you decide to leave your accommodation before the end of the lease, you must send an early termination letter (by registered mail) to the landlord. You must give at least one month's notice for the 15th or end of the month. It is the date of receipt of the letter (and not the postmark) that shall be considered valid. For example, if you want to leave your apartment on 15th April, the property owner must receive your termination letter on 14th March at the latest. All tenants must sign this letter. If you are married, your spouse must sign the early termination letter for the lease. The same is true for registered partners. SherlockHomes can help you write a suitable termination letter.

If you have found a replacement tenant, attach their file to your early termination letter for the lease. The new tenant’s file must include:

  •   their three most recent wage slips;
  •   copies of their ID card;
  •   a copy of their residence permit (for foreigners) ;
  •   their debt enforcement information (certificate of good standing).

The prospective tenant must also confirm in writing that they have visited the accommodation, that they are ready to take it over under the same conditions and in its current state and must specify the lease takeover date.

You are not required to have found a replacement tenant when you send your termination letter. However, if you cannot find a replacement tenant, you will be required to pay the rent until the next possible notice period and leave the accommodation.

Upon receipt of your letter, the property owner has one month to check the replacement tenant’s file and inform you of their decision. Sometimes, real estate agencies acknowledge receipt of the termination letter and release the outgoing tenant from his obligations: in this case, they are not obliged to find a replacement tenant for the apartment. The agency is responsible for organising visits and finding a new tenant.

 You are released from your obligations as soon as you receive confirmation of the termination from your property owner.

 

How to find a replacement tenant

In Switzerland, the real estate market is somewhat tight. It is therefore rather easy to re-let your apartment, especially in large cities. However, the replacement tenant must be solvent and acceptable.

  •   The rent charges included for the accommodation must not exceed 30% of their gross monthly income. In addition, the candidate should not be subject to any criminal proceedings. To prove their solvency, they can provide you with a certificate of good standing. This document can be found online at SherlockHomes.
  •   In particular, an acceptable candidate undertakes to use the apartment solely for accommodation purposes and not as commercial premises.

Candidates must provide you with a complete file (a copy of their identity document, their three latest wage slips, their debt enforcement information, their application form, and a written commitment to take over the lease under the same conditions). Keep the originals of these documents: simply send copies to the property owner.

Since you are terminating the rental contract, it is your responsibility to organise visits. To make this step go as smoothly as possible and allow for a quick and easy relocation, expect questions from candidates about the apartment (amount for additional charges and energy bills, noise pollution, local shops, fibre optic, etc.). Highlight the accommodation on offer: it must be clean and tidy. Avoid noise pollution, such as television or radio, during visits. Air the apartment to eliminate any bad smells. Also remember to remove any decorative items that might be too personal in taste. And finally, don’t forget to smile!

On a real estate platform like SherlockHomes, you can increase your chances of finding the ideal candidate by posting a re-letting ad. In addition to distributing your ad, the site helps you organise a visit schedule and can even send the files for the best candidates to the agencies.

If the property owner refuses a replacement tenant

If, for personal reasons, the property owner refuses a potential candidate that meets all the legal conditions, you are released from your obligations for the proposed re-letting date. In the event of a dispute, you can always prove that your candidates met the legal requirements by using the original documents you have collected.

If the candidate withdraws

In theory, nothing obliges you to propose more than one replacement tenant.

 

 Nevertheless, it is advisable to find at least three candidates, because one of them may withdraw at the last moment due to personal reasons. On the other hand, if a candidate withdraws because the property owner took too long to respond or wishes to modify the conditions of the lease, you are released from your obligations. It is advisable to remind the property owner of this in writing.

 This article cannot be considered exhaustive and does not engage the responsibility of its author.

 

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