Switzerland is not only known for the Swiss chocolate, famous watch industry, the banking industry and its superior quality, but also offers to be in the center of high society and intellectuals. Switzerland is a country with the charming atmosphere, well-developed infrastructure, positive and welcoming population and well developed real estate sector. The specifications of the living conditions in Switzerland are indicated by the high standards of living (Geneva and Zurich in the top best 10 cities to live in in the world, 2016) and a very low level of real estate acquisition in proportion to the population. It is a fact for many decades now that only half of the Swiss population are the property owners, whereas the other half of the population prefers to rent their homes for a very long term. If you are planning to visit Switzerland or move to this beautiful country, it is always useful to understand certain rules and specifications of the rental process in the country.
Nowadays situation on the real estate market
Switzerland attracts various nationalities due to its high qualities and high standards of living. For the past several decades, Switzerland is attractive for tourists, immigrants and other guests. However, one of the main rules for obtaining an apartment, a villa, a house or other real estate for rent is getting the permission for the living permit. The real estate properties are also available for rent for tourists, but only for a short period of time.
Due to the attractiveness of the country and the increasing flow of the people from abroad, the conditions on the real estate market in Switzerland are incredible. Out of a thousand of available real estate spaces for rent of different categories, only a few are available for rent for expats and new comers. As in the other European countries, Switzerland offers a wide variety of accommodations from economy class, to medium comfort class, and VIP conditions for accommodation. Here, you can find small, medium-sized and also spacious apartments, duplexes and penthouses, cottages, villas and even Midcentury castles that are available for rent.
The full picture is the following:
- Most of Swiss citizens and expats prefer renting, as acquiring a property in Switzerland can be difficult and also quite expensive. For example, a home far from the city center can cost approximately 750’000 CHF. Even when taking a mortgage on the property, the housing prices in Switzerland exceed the prices in comparison to other European countries.
Basic rules for property rent in Switzerland
An established legal framework as well as well-developed market of real estate led to creation of clear rules in terms of renting a property. If you would like to join the residents of Switzerland, first of all it is important to read the proposals of the properties on the official websites of the landlords or the agencies. It is important to note that the demand exceeds the supply on the real estate market in Switzerland for the past decade, so it is adviced not to take too much time for thinking and contact the agency for the interesting accommodation right away. The process of registration of the application and the selection of suitable house can be time consuming. This can be explained by the priority given to the local inhabitants of the country.
The first step for renting – filling up and sending the application. You will have to fill in the basic information about yourself and provide the documents demanded in the application form. The type of documents that are usually requested are the following:
- Passport and living permit photocopies
- Recommendation from the employer
- The work contract (attestation from the university for the students)
- The attestation proving the absence of debt -“Extrait du Registre de l’Office des Poursuites” and is issued by the local management body
The other most common questions are the following:
- Marital status
- Number of children
- Nationality
- Pets
- The duration of stay
This type of procedure may be called as “an accommodation interview”. Usually, one property has several candidates that are willing to commit to the rent, however, the landlord (the owner) has the right to choose the most suitable candidate.
Various types of accommodations available for rent
The most popular option for rent in Switzerland is housing in general segment, usually without furniture and repairs. The terms of this lease option usually exceed 5 years, however, can be discussed.
As in other countries, the second option is monthly rental housing. For the expats, immigrants and guests of the state that are in search of the new life, this category is most suitable. The chosen accommodation is usually already furnished and well equipped with all the terms of the comfortable stay, thus there are no costs to equip the apartment or the house of your choice.
The specification of the real estate market in Switzerland is low demand for the second option, described above. Most people prefer a long-term lease and choose to furnish and equip the apartment according to their own taste. However, the second option is very popular for students and for short term visitors, as this segment prefers the fully furnished and fully equipped accommodations.
The pricing policy
Depending on the type of housing and the location of the proposed accommodation, the prices may vary. In Switzerland, you do not simply pay for the leased accommodation, but also for the atmosphere, its service and environmentally friendly quality of life. The apartments located far from the centers usually have lower prices than the ones in the center, more or less 1’000 CHF per month. However, if speaking about the accommodations in the cities like Zurich, Geneva, Basel, Bern, Lausanne, Lugano, then the monthly prices will be considerably higher. It is also important to note that all of the landlords are requesting the guarantee payment that is usually held on specific account and serves as a security for the damage that the tenant might cause to the property. Usually the guarantee is between 3’000 to 5’000 CHF.
How to conclude a contract with the landlord/agency?
After you have determined the type of the property that you would like to rent, submitted the filled-out application with the requested documents, and have been approved by the owner, you may proceed with signing a contract. The contract for property lease is mandatory in Switzerland, as it allows to protect both, the landlord and the tenant in case of unfavorable situations. The contract states and clarifies the obligations and the rights of both parties, the landlord and the tenant, as well as provides the rules that must be followed during the use of the leased property. The usual contract must include the following items:
- The duration of the lease
- The costs of the monthly lease
- The costs of the charges
- The reasons and deadlines for contract termination
The average duration of the lease contract is usually 1 year with monthly rent payments, however, it may be discussed individually. One of the important point to note is that the landlord does not have the right to independently raise the fees for the use of premises. In order to raise the fees, the landlord must obtain the permission from the municipality in the region.
In conclusion…
Switzerland is a very special and specific country that offers an unforgettable atmosphere and loyalty to its guests and visitors. Knowing the details and the specifics of the rental real estate market in the country will enable you to proceed with confidence in search of the new job, new positive emotions and even a new life.