Withdrawing from a tenancy agreement

Entering into and being bound by a tenancy agreement

Generally speaking, in Switzerland, a tenancy agreement does not have to follow a particular form. This means that even an agreement made with a handshake can be legally valid. Even still, we recommend entering into a tenancy agreement in writing. If a written tenancy agreement is drawn up, it must be signed by both parties. Only once both parties have signed does the written agreement become legally binding, requiring both the landlord and the tenant to comply with the agreed terms.

Options for withdrawing before the tenancy starts

There is no statutory right to withdraw from a tenancy agreement in Switzerland. This means that neither party can simply withdraw from the agreement once it has been signed. However, the following options are available:

• Termination by mutual agreement: both parties can mutually agree to terminate the agreement. To avoid misunderstandings, this should be recorded in writing in a termination agreement.
   
• Finding a replacement tenant: tenants can propose a suitable and financially solvent replacement tenant to the property management company who is willing to take over the tenancy on the same terms. If a suitable replacement is found, the existing tenancy agreement can be terminated.

Termination before the tenancy starts

It is possible to give ordinary notice to terminate a tenancy agreement before the tenancy starts. However, the notice period only starts on the agreed start date of the tenancy. This means that tenants who give notice before the tenancy starts must still pay the rent until the earliest possible termination date – unless a new tenant is found.

Please note: unlike with many other types of agreement, there is no 14-day right of withdrawal for tenancy agreements. You should therefore make sure that any questions or uncertainties are clarified as far as possible before signing the agreement.

As a general rule, property management companies cannot unilaterally withdraw from a tenancy agreement unless this is expressly provided for in the agreement or the tenant breaches the terms of the agreement.

Special cases: withdrawal due to defects or misrepresentation

If serious defects in the rented property are discovered before the tenancy starts and significantly affect its use, tenants may, in certain circumstances, be entitled to withdraw from the tenancy agreement. In these cases, it is important to document the defects immediately and notify the property management company in writing by registered post.

The defects include, for example:

• Damp walls
• Broken heating system
• Defective fixtures and fittings (kitchen, bathroom, toilet, flooring, etc.)
• Mould

But please note: withdrawal due to defects is only possible if the defects are serious – for example, if they pose a risk to your health or essential parts of the property cannot be used.

What should you do if the property is not ready on your move-in date?

If the property is not ready for occupation on the agreed move-in date, you can give the property management company a short period of time to put things right. If the property is still uninhabitable or it would be unreasonable to expect you to move in after this period, you can withdraw from the tenancy agreement. For less serious issues, you may be entitled to a rent reduction or compensation instead.

If you still wish to move into the property despite the delay, you will not have to pay rent until the date on which you can actually move in. In either case, the property management company must reimburse any resulting costs, such as hotel accommodation or furniture storage. Keep a written record, sent by registered post, confirming that you were not able to move in on the agreed date.

In Switzerland, you can only withdraw from a tenancy agreement under certain circumstances. It is therefore advisable to consider all possible circumstances before signing the agreement and, if necessary, seek legal advice to avoid taking on unwanted obligations.