Renting out your house - formalities

Hello,

can anyone knows or can point me to some information about the formalities required to rent out your property in Switzerland? Is there anything else to be done apart from signing the contract and then paying the taxes next year?

In some cantons, you need to also use a paper of official notification of initial rent that you give to your tenant.

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If you want to get your house back, make sure you have the right contract and legal advice. In some cantons at least tenant protection is strong, tenants can object to a notice to move out and it can take 2-3 years to force it through the courts.

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Incase you pledged/withdrew your 2nd pillar you want to make sure to pay back the amount you took out.
Then yes, proper contracf, rent deposit account and handover protocol and you should be good.

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OK, I have more details about our case…

  1. We are about to sign final deed with the notary, with the clause that the keys we will get about 2 weeks later.
  2. As we planned to extend the house and it will take several months to prepare the project, get the authorisations, etc. - we will end up paying both the current rent and the mortgage.
  3. When the current owners learned about it, they asked us if we would rent them the house for that period…

That would be perfect, as we won’t be losing money (the idea would be to rent them for the amount more or less just covering the mortgage monthly fees - win-win for both sides).

I’ll call my bank and the notary next week, but in the meantime, I would like to ask you about the ideas on how we should be able to do it? FYI - we have permit B, we used LPP… I know if we rent (not sure if possible with permit B), we would have to pay back the LPP. But maybe there is another solution, instead of regular rent, that can be put into the deed to avoid paying back the funds etc?

Suprisingly, in my pension fund regulations, I’ve found also such clause:

Personal use

The insured person must use the residential property at his/her legal domicile or at the loca-
tion where he/she usually resides. If the insured person is temporarily unable to use the resi-
dential property him/herself (i.e. due to absence because of occupation or health), the prop-
erty may be rented during this time.

I guess our case can be considered as such temporary case (few months) - what do you think?

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And similar rule in my wife’s pension fund regulations:

Article 6 Own Needs
The term “own needs” is defined as the use by the insured person, or his spouse and any children who are entitled to an orphan’s pension, of a home at his domicile or habitual place of residence. If the insured person can prove to the OBS that he is no longer able to use the home for a determinate period (for professional or health reasons for example), he will be allowed to rent out the home throughout this period.

Hi Baldur,

I did recently ith my property.
I had to notify the bank as Mr Cheese mention. They will remove the pledge do a re-evaluation…
unless you do not have a managing company “verwaltung” you will need to notify your gemeinde and do some things like notify the energy company,… besides the contract.

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Maybe if the arrangement is just for a few months they’d be fine?

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This is what I hope for. Already contacted the bank and the notary, let’s see what they reply…

What exactly you had to update the about? That the house is rented out?

This is still an open question to me, who should be notified and when, even after normal procedure, meaning buying and not renting it afterwards. For example, regarding domicile, we were not planning to change the domicile immediately after buying the house (unless we should?), as we will stay for another few months at the same place and move to the new one after the works are finished (the same commune). Not sure about all service providers, insurances, etc…

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What the gemeinde (I lived in a small village 5k, not sure in the cities) told me that they need
the name of the new tenants and when their move date, same as when they leave and new people will come.

In our case it will be the same tenants as before, only the ownership of the house will change (from them to us), domicile for them and us (the same village) would stay the same for the next few months. At least this is the idea, if we can do it like that not breaking any rules/regulations.

the easiest will be to go to the authorities and explain it. They will tell you what you need.

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