Volt says NO to the Changes in the Rental Law

The rental landscape in Switzerland reflects the living reality of a large part of the population. While homeowners make up the majority in other parts of Europe, over 60% of households here live in rental or cooperative housing. Thus, tenant protection is of great importance. In a tight housing market, it is crucial to maintain a balance between the interests of tenants and landlords. However, the two new proposals on rental law threaten to loosen important protective mechanisms for tenants.

Termination Due to Personal Use

Personal use allows property owners to quickly reclaim a rented apartment or commercial space for their own use when needed and to terminate the rental agreement. This typically occurs in one of three scenarios:

1. Firstly, when purchasing a property, the new owner is allowed to terminate the lease with the statutory notice period of three months for apartments and six months for commercial spaces—even if the existing rental agreement specifies a longer notice period.

2. Secondly, owners may also terminate the lease for personal use during the three-year blocking period that can apply following a legal dispute with tenants.

3. Thirdly, personal use plays a role in relation to the so-called tenant extension in hardship cases. This allows tenants to remain in the apartment or commercial space longer after a termination.

The proposal allows property owners to assert personal use more easily by relaxing the requirement to demonstrate urgency. In the future, it will be sufficient to prove a "significant and current" personal need, rather than a "pressing" one.

Volt views the changes regarding personal use with concern. We acknowledge that property owners have the right to use their properties; however, the proposed law goes too far and significantly weakens the termination protection for tenants. One of the greatest dangers is that tenants may lose their homes more quickly and easily during times of housing shortages, which could pose an existential threat, especially to low-income households. This proposal also poses a risk for businesses, as they cannot rely on the contractually agreed notice period, particularly during a change of ownership, and may suddenly have to search for new commercial spaces within six months. Especially in urban areas, where affordable housing is already scarce and low-income individuals as well as small businesses are being displaced, this loosening of tenant protection would further exacerbate the situation.

Adjustments to Subletting

Under the new regulation, tenants must submit written requests and obtain qualified consent from landlords in order to sublet their apartment or parts of it, such as a shared room. Additionally, subletting agreements that last longer than two years may be outright rejected. If the tenant violates the obligations related to subletting, the landlord has the right to issue a written warning. If this warning is unsuccessful, the rental agreement with the primary tenant can be terminated with a notice period of 30 days.

In our view, subletting is an important tool that allows many tenants to flexibly adapt to their living circumstances, whether during a temporary stay abroad or for communal living with housemates. Particularly in increasingly expensive cities, it is crucial for retaining affordable housing. While Volt supports certain measures, such as the requirement for written agreements, and acknowledges that action must be taken against the Airbnb crisis, the entire proposal is sidelined by the draconian notice period of 30 days following an unsuccessful warning from the landlord. We do not see how this proposal addresses the issues at hand; rather, it seems to exacerbate them.

Volt's Position

In our view, both proposals do not provide viable solutions to the challenges of the Swiss housing market. They facilitate a reduction in the housing supply and the turnover of tenants, both of which further drive up the already rising rental prices. They offer landlords only superficial solutions to concrete problems and weaken the protection of many individuals and small and medium-sized enterprises (SMEs). Therefore, Volt advocates a firm NO to both legislative proposals on 24 November 2024.

Sources

Die reiche Schweiz – ein Mieterland, SwissInfo
Mietwohnungen, Bundesamt für Statistik
Mietrecht: Kündigung wegen Eigenbedarfs, ch.ch
Mietrecht: Kündigung wegen Eigenbedarfs, admin.ch
Miete: Untermiete, ch.ch