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Tenancy agreement10. Oktober 2024

Terminating a lease – what you need to know!

If you wish to terminate your lease as a tenant, there are several things to consider. This article covers deadlines, formalities and finding a replacement tenant.

Terminating a lease – what you need to know!

For most tenants, rental deposit accounts are an annoying burden. Not only is the required money often hard to come by, it is also a pure loss-making proposition for tenants. The only ones who benefit are the banks, which earn millions – year after year.

Lease termination by the tenant

If you wish to terminate your lease as a tenant, you must always do so in writing. The law requires a written termination even if there is no written tenancy agreement. A verbal termination is not sufficient and is not legally valid.

Another common mistake is missing the notice deadline. The landlord must receive the termination on the last day before the notice period begins. It is strongly recommended to send the termination by registered post. This puts you as a tenant on the safe side should a dispute with the landlord arise.

If you prefer to deliver the termination to the landlord in person, be sure to bring two copies. Have the landlord sign both copies. One copy remains with the landlord and you take the second one with you. This serves as mutual protection.

The termination must be signed by all parties to the lease. This includes the tenant’s spouse. Even if the spouse did not sign the lease, they must sign the termination. Whether the couple has children or not is irrelevant.

Tenants are frequently forced to move out early. It is not always possible to observe the notice period. In this case, there is the option of finding a replacement tenant who will take over the existing lease on the same terms. In large cities such as Bern and Zurich, a suitable replacement tenant can often be found quickly. The landlord may not alter the existing contract. If the current tenant cannot find a replacement, they must continue to pay the rent until the end of the notice period stipulated in the lease.

Exceptional cases for early termination

If the tenant dies, the heirs may terminate the lease either in accordance with the statutory notice period of three months for residential premises and six months for commercial premises, or according to the provisions of the lease. This applies even if the lease was concluded for a longer period. In the event of serious defects in the property, immediate termination without notice is possible. If important reasons exist, termination with the statutory notice period on a date chosen by the tenant is also possible. However, the requirements for such grounds are extremely strict and rarely met.

For furnished apartments, there are no customary local termination dates. However, it should be noted that furnished apartments, as defined by the legislator, hardly exist. Anyone living in a shared flat and sharing communal areas with their flatmates is not considered to be living in a furnished apartment.

When the landlord rejects the replacement tenant

If you put forward a replacement tenant for an early termination, the landlord may reject them. However, there must be valid reasons for doing so. It is important that the replacement tenant is acceptable. This means they must be financially capable. They must be willing to take over the existing lease and they must fit into the residential community.

If your landlord is a property management company, you can expect a processing time of up to two weeks. If your landlord is a private individual, the decision on your proposed replacement tenant may take up to a month. It is advisable to have several potential replacement tenants ready. This increases your chances of success. If your landlord rejects your proposed replacement without valid reasons or takes an unreasonable amount of time to process your application, you are released from the obligation to pay rent. The same applies if your proposed replacement tenant suddenly withdraws due to a rent increase by the landlord.

Termination by the landlord

In some cases, the landlord may wish to terminate an existing tenant. There can be many reasons for this. To do so, the landlord must use forms approved by the canton. Under certain circumstances, the termination by the landlord must be justified. Otherwise, the termination may be considered invalid from a legal perspective.

Tenants have 30 days to challenge the termination before the conciliation authority. The deadline begins upon receipt of the written termination. In some cases, the tenancy may be extended. For residential premises by up to 4 years, and for commercial premises by up to 6 years.

If a married couple or registered partners live in the apartment, each partner must receive the termination separately. The same rule applies to same-sex couples. Otherwise, the termination is void.

Termination dates and notice periods

The termination date is occasionally confused with the date on which the termination letter is sent. To find out which termination dates apply in your specific case, refer to your tenancy agreement. It contains the necessary information. Sometimes, however, the landlord has forgotten to enter this information. In that case, the customary local notice periods apply.

In addition to the termination date, the notice period is of decisive importance. For residential premises, this is at least 3 months. For commercial premises, it is 6 months. If you wish to terminate your apartment as of 31 December, you must submit the termination letter by the end of September at the latest – three months in advance. What matters is the date on which the landlord receives the termination letter. It is not the date of the postmark that is decisive, but the day on which the landlord receives the letter or on which it is ready for collection at the post office.

Tip: send the termination letter at least three working days before the start of the notice period.

Withdrawing a termination

In principle, a termination cannot be revoked. If you nevertheless wish to revoke it, the landlord must agree. Furthermore, the agreement should be recorded in writing.

Checklist for terminating a lease

Use this checklist to make sure you do not forget anything when terminating your lease:

  • Have you observed the termination date and the notice period? Details can be found in your tenancy agreement.
  • Pay attention to the delivery date. When you send the termination letter, it must reach the landlord in time.
  • Family apartment? Have both partners signed the termination?
  • Do you need to cancel other contracts as well? Think of everyday items such as electricity, water, television or a garage. Also use our apartment handover checklist.
Tenancy agreement10. Oktober 2024
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