Rental agreement

Tenancy law regulates tenancies for movable and immovable property, for residential and commercial premises.

Further information can be found in the Tenancy Law section.

The provisions on the rent of residential and commercial premises also apply to objects which are provided for use together with the rented property (Art. 253a CO), e.g. furniture and fittings.

The provisions on protection against abusive rents (Art. 259 et seq. CO) do not apply to the rent of luxurious flats and single-family houses with six or more living rooms, not including the kitchen (Art. 253b para. 2 CO).

The provisions on challenging abusive rents do not apply to residential premises whose provision has been subsidised by the public authorities and whose rents are controlled by an authority (Art. 253b para. 3 CO).

Scope of the rental agreement

The object of the rental agreement is the transfer of an object, property or premises for use in return for payment.

The landlord must leave the rented property in a usable condition and maintain this condition.

The tenant undertakes to pay the rent and ancillary costs.


Distinguishing from other contracts

The rental agreement must be distinguished from other contracts for the transfer of use. In contrast to the loan for use, the rental agreement is for a fee.


Parties

Parties of the rental contract

The rental agreement or tenancy agreement is concluded between the landlord or lessor and the tenant or lessee.

The tenancy agreement can be concluded orally or in writing. Written contracts are the norm. Standardised, pre-formulated tenancy agreements and general tenancy conditions are usually used. Deviations and additions can be agreed.

Subtenant

Subtenants are in a tenancy relationship with the main tenant. They are not in a tenancy relationship with the main landlord.


Form of the rental contract

Rental agreements can generally be concluded without any formal requirements and therefore also verbally or by implication. For evidentiary reasons, written form is recommended.


Duration

The law does not contain any provisions on the duration of tenancy agreements. Tenancy agreements may thus be of limited or unlimited duration (Art. 255 CO).

Fixed-term tenancy agreements

Fixed-term tenancy agreements end without notice on expiry of the agreed term of the agreement (Art. 266 CO). In principle, they cannot be terminated, with the exception of extraordinary terminations. If the tenancy is continued beyond the agreed term, it is deemed to be an indefinite tenancy.

Unlimited tenancy agreements

Tenancies of indefinite duration must be terminated. The law provides for different periods and dates of notice depending on the type of tenancy.

If a minimum term is agreed, the tenancy cannot be terminated during this period. After expiry of the minimum term, the tenancy is for an indefinite period and can be terminated by ordinary notice.


Rent and ancillary costs

The amount of the rent and ancillary costs is agreed by the parties in the tenancy agreement. If ancillary costs are excluded from the rental agreement, the tenant only has to pay these.

It is also possible to agree a lump sum that includes the rent and ancillary costs.


Unilateral changes to the contract

The landlord can amend the tenancy agreement unilaterally. This most frequently occurs in the form of a rent increase. The rent increase is regulated and the landlord must use a form for the contract amendment and follow a specific procedure.


Termination

Landlords of residential and commercial premises must give notice of termination using an officially authorised form. In the case of family flats, the landlord must send the form to both spouses or registered partners separately.

The tenancy agreement usually stipulates that the tenant must give written notice of termination.



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