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RENTING

Can I make changes to my rented apartment in Switzerland?

If you moved into a new flat in Switzerland and didn't like the décor, do you have the right to remodel the place?

Can I make changes to my rented apartment in Switzerland?
Whether to not you need your landlord's permission depends on what type of remodelling work you plan to do. Image by Laura Shaw from Pixabay

Finding affordable dwellings in Switzerland is a challenge, especially in large cities.

So if you find one in a good area and at a reasonable price, you may want to rent it, regardless of whether everything inside is to your taste.

You may think, ‘once I am in, I can change whatever I don’t like.’

But can you?

The answer depends on what kind of changes you would like to make.

As a rule, modifications to a rented property are only permitted with the landlord’s written consent.

However, much depends on what is meant by ‘modifications’.

If, for instance, you want to repaint the walls a different colour, then you can do so without a landlord’s permission, as long as the walls are restored to their original hue when your tenancy ends.

The same applies to holes in the walls to hang pictures, or any other purely ‘cosmetic’ changes that don’t involve structural alterations (such as, for example, knocking down walls to make rooms bigger).

In other words, as long as your modifications are not permanent — that is, you will be able to return the flat to its original state before you move out — then it is in principle okay.

When must you seek permission from landlord or management company for changes you are planning to make?

You absolutely need written consent if you would like to undertake substantial remodelling work that involves tearing down anything that is a permanent fixture of the home, such as bathrooms, kitchen, or flooring, for instance.

Remember that you are legally responsible to revert the flat to its original state when your rental contract ends, and that will likely not be possible if you make extensive structural modifications.

In this case, the landlord can demand that you remove all your alterations and pay for it out of your own pocket .

What if your changes improve the overall condition of the apartment?

If you have an idea for improvements to the kitchen, bathroom, floors, or other fixtures, bring it to your landlord’s attention, explaining how these upgrades will make the flat better for the landlord and future tenants alike.

If they agree, you can negotiate a deal where you make all the work yourself against a rent reduction.

If you are skilled in this type of work and can prove your experience, then you may strike a deal.

However, if the landlord is not in agreement with this plan, then you should not modify anything in the flat that can’t be easily changed back later.

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RENTING

EXPLAINED: Are you entitled to rent reduction in Switzerland right now?

The Swiss National Bank (SNB) announced on Thursday its second interest-rate cut of 2024. Does this mean some financial relief for tenants?

EXPLAINED: Are you entitled to rent reduction in Switzerland right now?

After cutting the interest rate in March from 1.75 to 1.50 percent, Switzerland’s central bank slashed the rate by another quarter percent to bring it down to 1.25. 

The law of economics, at least in Switzerland, dictates that when the rates are cut, rents will fall as well.

That is because most rents in Switzerland are based on the so-called reference interest rate, which is set by the Federal Housing Administration.

It is an average of all interest paid on mortgages in Switzerland. These, in turn, are based on the SNB’s key interest rate.

As a rule, if the reference rate falls by 0.25 percent — as is the case now —tenants are generally entitled to lower rents.

According to Freddy Hasenmaile, chief economist at Raiffeisen Bank, “the bottom line is that this should slow the growth of existing rents somewhat.” 

When will this rent reduction go into effect?

Unfortunately, this doesn’t happen overnight.

Since long-term fixed-rate mortgages are also included in the calculation, it takes time for the reference interest rate to fall.

When that happens however — likely within the next few months — tenants will be entitled to rent reductions, provided the landlord had raised their rents when reference rates increased in the past.

Be proactive

Ideally, when the rates fall and tenants are entitled to have their rents lowered, the landlord should do this automatically.

But that is not always the case.

That is why it behooves tenants to take this matter into their own hands.

In all, an estimated 2.2 million households in Switzerland can apply for a rent reduction.

To make this process easier, the Swiss Tenants Association has prepared a sample form which can be filled out and sent to the landlard or management company. 

Can the landlord refuse your request for rent reduction, despite lower interest rates?

Yes.

According to Comparis consumer platform, the landlord could refuse to reduce your rent on grounds including value-enhancing works done to the property, higher operating costs due to inflation, or general increases in running expenses.

He or she can also say (and must prove) that the current rents are within the range of other comparable properties in the area.

Can you dispute this decision?

If you have valid reasons to do so, then yes.

For instance, landlords are allowed to  charge a maximum of 0.5 percent of the net rent to cover increases in operating and maintenance costs. 

Also by law, property owners may only pass on to tenants up to 40 percent of the inflation accumulated since the last rent adjustment.

If you have prove that these figures are exceeded, then you can file a complaint with your local conciliation authority. 

READ ALSO: How to solve a dispute with your Swiss landlord 

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