Termination of rental agreement: What you need to know!

Last Updated on 2 months by David Bergmann

An important milestone when planning a move is the timely termination of your existing tenancy agreement. To avoid mistakes or unnecessary payments, there are a few things you should know. In this article, we will go through step by step what you need to bear in mind when terminating your rental agreement, what deadlines need to be observed and what rights and obligations you have as a tenant.

1. Terminating a rental agreement – What do I need to consider?
2. Notice period – When can I give notice?
3. Termination letter – What must be included?
4. Tenant protection – rights and obligations
5. Termination by the landlord

1) Terminating a rental agreement – What do I need to consider?

Before you can give notice on your apartment, you should make sure that you have read your tenancy agreement thoroughly. As a rule, this is an open-ended tenancy agreement, but there are also fixed-term tenancy agreements. Depending on the type of rental agreement, different rules apply to termination.

• Open-ended tenancy agreement: You can terminate an open-ended tenancy agreement at any time after the minimum rental period has expired. Nevertheless, the statutory notice period of three months must be observed. You should therefore not delay giving notice as soon as you have found a new rental property of your liking. Otherwise you run the risk of having to make double rent payments for months.

• Fixed-term tenancy agreement: In the case of a fixed-term tenancy agreement, early termination is generally only possible for good cause. For example, if the landlord has breached clauses in the tenancy agreement or has not carried out important repairs after several reminders. Normally, however, you can only terminate a fixed-term rental agreement at the end of the agreed rental period.

• Special case of waiver of termination: If the rental agreement contains a clause for waiver of termination over a certain period (e.g. 5 years), caution is advised. This is because the tenancy may then only be terminated by the landlord himself. If this is nevertheless terminated by the tenant, the rent must continue to be paid.

2) Notice period – When can I cancel?

The notice period is an important aspect when terminating an apartment lease. Different notice periods apply depending on the type of rental apartment.

• Ordinary termination: For private residential premises, the statutory notice period is generally three months, and notice should be given at the end of each month. Please note: Longer notice periods (up to 6 months) are also legally permitted in Switzerland, provided they have been agreed in the tenancy agreement.

• Fixed-term tenancy agreement: As already mentioned, early termination of a fixed-term tenancy agreement is only possible for good cause. Otherwise, you must fulfill the rental agreement until the end of the agreed rental period.

Good to know: The letter of termination must be received by the landlord before the start of the three-month period. If the landlord receives notice of termination of the tenancy agreement on March 25, for example, the notice period covers the months of April, May and June. The notice of termination will therefore take effect on June 30. If the landlord receives the notice of termination late, the termination date is automatically postponed by one month.

Early termination – is that possible?

This depends on the circumstances and must be agreed with the landlord. If you wish to terminate the tenancy agreement without notice , for example because you need to move quickly for professional or private reasons, you can nominate a reasonable new tenant . If the landlord agrees to the new tenant, the tenancy agreement can be terminated without observing the three-month notice period and double rent payments can be avoided.

Another situation that justifies early termination is the existence of serious defects (e.g. leaking roof) that are not remedied by the landlord or not remedied in good time. However, it should be noted that the tenant must inform the landlord of the defect in writing and set a reasonable deadline. If a dispute arises, the competent arbitration authority can be called in.

3) Termination letter – What must be included?

To effectively terminate your tenancy, you must send a written letter of termination to your landlord or landlady.

It is advisable to send the letter by registered mail to ensure that it reaches the recipient. The postmark serves as proof of the time of dispatch.

The following information should be included in the notice of termination:

• Name & address: The termination letter should include your name, the address of the property you wish to terminate and the name and address of the recipient (= landlord).

• Cancellation date: You must state the exact cancellation date. This is the termination date on which the tenancy is to end. This is usually the last day of the month. Observe the statutory notice periods and the usual local deadlines.

• Signature of all tenants : Don’t forget to sign the letter before you send it. If the tenancy agreement is in the name of more than one person (e.g. spouse), both must sign.

• Reasons for termination: You do not have to give any reasons for termination in your letter of termination. You can also terminate your tenancy agreement without giving reasons. However, if you wish to give extraordinary notice of termination, for example due to late payment by your landlord or landlady, you should clearly state the reasons in the letter of termination.

4) Tenant protection – rights and obligations

Switzerland has a well-developed tenancy law that protects tenants. If you want to give notice on your apartment, it is important to know your rights and obligations:

• Replacement tenant: If you wish to terminate your tenancy early, you can look for a so-called reasonable replacement tenant. Your landlord or landlady is generally obliged to accept such a new tenant, provided they are solvent and reliable. This can help you to shorten the notice period and avoid double rent payments for the new and old apartment.

• Service charges: Make sure that all outstanding service charges have been paid before you give notice on your apartment. Outstanding payments could invalidate your termination or result in the landlord withholding the rent deposit.

• Spouses and registered partnerships: If you live with your partner and only one of you has signed the tenancy agreement, it also applies to the other partner. This means that the non-signatory partner is also affected in the event of termination.

• Conciliation authority: If a dispute arises between you and your landlord or landlady, you can contact the conciliation authority. This can help to reach an agreement without going to court.

• Extension of the tenancy: In some cases, for example in the event of prolonged illness or pregnancy, the tenancy can be extended at the tenant’s request. This is referred to as an extension of the tenancy.

• Termination outside the usual notice period: In special cases, such as a job transfer or for other important reasons, you can terminate your contract outside the usual termination dates. However, this must be carefully justified.

5) Termination by the landlord

As already mentioned, the interests of tenants in Switzerland are protected by tenancy law. Nevertheless, it is also possible for the landlord to terminate the tenancy agreement as long as he complies with the legal regulations.

Here you will find a few examples of cases in which the landlord can terminate the contract:

• Ordinary termination:
  • A landlord can terminate the tenancy by sending a letter of termination (by registered letter). The statutory notice period is usually three months, unless a longer period has been agreed in the tenancy agreement. As long as the landlord complies with the legal requirements and deadlines, termination is legally permissible and only needs to be justified at the tenant’s request.

• Extraordinary termination:
  • A landlord can also give extraordinary notice of termination if there are important reasons, e.g. late payment by the tenant (rent and/or ancillary costs), significant damage to the rented property or disruptive behavior on the part of the tenant. In these cases, termination without notice is legally possible.

• Own use:
  • If the landlord needs the rented apartment for himself, his family or registered partnerships, this is a permissible reason for terminating the tenancy.

If you are confronted with a termination notice, carefully check the reasons for termination and the notice periods. In the event of uncertainties or disputes, you can contact the conciliation authority.

Conclusion:

Terminating a rental agreement in Switzerland requires a certain amount of planning and compliance with legal regulations. It is important to observe the correct notice periods and to draft the termination letter correctly so that it is valid. As a tenant, you have various rights and protective measures at your disposal to ensure that your interests are safeguarded. If you are unsure or have any questions, it is advisable to seek legal advice in good time or contact the conciliation authority to avoid conflicts.

Tip: Not sure whether you should terminate your rental agreement? Here are 6 good reasons to move!

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