How to find a rental property despite debt collection proceedings
If you want to rent a property in Switzerland, you'll usually need to include a debt collection report with your rental application. It allows landlords and property managers to assess a prospective tenant's payment history. While finding a rental property with debt collection proceedings on your record can be challenging, it is by no means impossible.
Debt collection proceedings can raise questions about a tenant's financial reliability. However, having an entry on your debt collection report doesn't automatically mean you won't be able to find a home.
Finding a rental property despite debt collection proceedings: how to improve your chances
Wait until the entry expires
This is the simplest option. Debt collection proceedings remain visible on a debt collection report for five years. After that, they are no longer shown on the report and are only accessible to the authorities. So, if you're not currently looking for a new home, time may work in your favour.
Have the entry removed
Paying off a debt does not automatically remove the corresponding entry from your debt collection report. To have it deleted, you need the creditor's cooperation. Once the debt has been settled, the creditor must confirm in writing that they are withdrawing the debt collection proceedings. Some companies charge an administrative fee for issuing this declaration.
If the debt collection proceedings were initiated without justification, the only way to have the entry removed is through legal action.
Include a reference letter
If waiting or removing the entry isn't an option because you need to move quickly, a reference letter from your previous landlord or property manager can strengthen your application. Ask them to confirm in writing that you always paid your rent on time. You should also include a copy of your employment contract and, if possible, a letter from your employer.
Be open and transparent
Talk to the landlord or property manager and explain your situation honestly. Give them the opportunity to get a complete picture of you. After all, a single entry on a debt collection report does not necessarily mean that you are consistently unable to meet your financial obligations.
It becomes more problematic if several invoices have resulted in debt collection proceedings, if the proceedings extend over a longer period of time, or if the outstanding amount is substantial. In such cases, landlords and property managers are likely to have serious concerns, making it much harder to secure the property you want. If you find yourself in this situation, seek professional support as early as possible, for example from a debt counselling service or your local municipality.
Is it possible to rent a property without a debt collection report?
Although a debt collection report is not a legal requirement in Switzerland, it forms part of most rental applications. Landlords request it to better assess an applicant's financial reliability. Particularly in areas where demand is high, not providing one can significantly reduce your chances of securing a property.
That said, it is still possible to rent a property without a debt collection report. This is sometimes the case when renting from a private landlord, subletting a property, or applying for a room in a shared flat. In these situations, some landlords may be willing to waive the requirement if you make a good personal impression and convince them that you are the right tenant.
