Vote on November 24, 2024 The most important facts about the two tenancy law proposals

On November 24, voters in Switzerland will decide on two changes to tenancy law. Here is an overview.

Two bills on tenancy law will be put to the ballot box on November 24. Both are being fought with a referendum. The amendments to the Code of Obligations concern subletting apartments and terminations for personal use. Here is the most important information on the two bills:

Subletting

Under current law, anyone who has rented an apartment or business premises can sublet them. Today, landlords can only refuse if the main tenant sublets the premises for an excessive price, the landlord has to accept a disadvantage - for example due to noise - or the main tenant does not inform the landlord of the conditions of the sublet. The main tenant must also inform the landlord who is moving into the premises as a subtenant. It is possible to offer a rental apartment temporarily on Airbnb.

Termination due to personal use

Landlords can currently only terminate tenants' tenancy agreements for personal use if they have an "urgent" personal need for themselves or close relatives. Own use can be taken into account when extending tenancy in cases of hardship and in the event of legal disputes. Even after buying a property, the new owner can terminate the lease for personal use.

The two bills were not initiated and drafted by the Federal Council, but by Parliament. The Code of Obligations is to be amended in two respects.

Stricter requirements for subletting rented premises are intended to help prevent abuse. Tenants will now have to submit a written application for subletting and landlords will have to agree to the subletting in writing. If the rules are not adhered to, notice can be given. Furthermore, rooms may only be sublet for a maximum of two years, and landlords can also refuse subletting "for reasons other than those currently applicable".

In future, the landlord's or landlady's asserted personal needs should be "significant and current, based on an objective assessment" for themselves and close relatives. Owners should therefore be able to terminate tenancy agreements more quickly and easily.

The housing shortage and the rental of living space on platforms such as Airbnb encourage subletting abuse, the Federal Council and parliament claim. Landlords and tenants could still agree on additional options and formulate conditions, such as subletting for more than two years or subletting via online platforms.

With the relaxed provisions on registering personal use, Parliament wants to ensure that landlords can use rented rooms themselves more quickly than is currently the case. The fact that landlords will continue to be liable for damages incurred by tenants as a result of premature termination puts the impact of the bill on tenants into perspective in their eyes. Tenant extensions also remain possible and terminations for personal use can be contested.

In parliament, the SVP, FDP and the majority of the center said yes to both amendments to tenancy law. The GLP only approved the new rules for claiming personal use.

An alliance led by the Tenants' Association is fighting the changes to the Code of Obligations with a referendum. According to the opponents, the proposals are an attack on tenant protection.

On the one hand, the tried and tested subletting is to be massively restricted. Tenant protection would be weakened without need, because subletting could be terminated for minor violations. The restrictions would affect hundreds of thousands of people, from students in shared apartments to senior citizens who want to sublet a room in their overly large apartment. The potential for abuse is low.

Own use is already being used as an excuse to evict tenants and then re-let rooms for more money. This is dishonest. Tenants are less protected if the landlord's own needs are not urgent.

In parliament, the SP and the Greens rejected both changes to tenancy law. The GLP only said no to the stricter provisions on subletting.