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…
- We are about to sign final deed with the notary, with the clause that the keys we will get about 2 weeks later.
- 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.
- 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…
- Utility services probably a bit before the move so you have service at the new place when you move in (e.g. internet, water, eletricity)
- Authorities/Post within 14 days of the move (also see Relocation checklist | Swiss Post and more specifically Notify companies about a move | Swiss Post)
- Insurances (car, health, etc.) also within 14 days of the move
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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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@baldur did you go forward with this idea of the previous owner renting from you? I might be in a similar situation where we want to buy a house in 2022 but the current owner wants to stay in renting it from us for 2-3 years, before we move in.
Yes! We signed the contract until end of February 2022, clearly stating that this is temporary and without possibility to extend it. We also contacted the bank and both pension funds we have withdrawn the money from - all were fine with this arrangement. So far, so good…
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thanks - good to see that there is some leeway on this topic. We are still unsure if we go ahead with this arrangement (buy now and let the owner rent it) or if we’ll date the contract for 2024 instead.
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What about 3rd Pillar? Do you have to pay it back as well in case you pledged it to Buy a property? Or only 2nd pillar is effected when you decide to rent?
Second question:
If I do not pledge my 2nd pillar, only 3rd pillar can I rent out the appartment right of the bet? Like an investment vehicle
And now bonus qustion:
What if I want to rent out only part of my appartment, lets say I buy a bigger appartment with one room that I do not use, can I rent it out to some student and continue living and being registered in the same appartment. Does rule of paying back LPP applies?
Unfortunately, I don’t know what are the answers, I guess the best would be to contact your LPP. Regarding 3rd pillar - I’m also not sure, but when you pay the money out, your relationship is kind of closed, so there is even nobody to ask about it. Of course you need to pay the taxes, so I think everybody is happy and 3rd pillar funds are not affected by renting etc. With 2nd pillar it is much more formalised - eg. information that you have used 2nd pillar funds is reflected in land/buildings register.
Finpension website is really helpful and answers most of these questions if you click through the Q&A
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