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HOUSING

Can a Swiss landlord charge a fee if you renounce to rent an apartment?

Say you signed a registration for a flat in Switzerland, but then changed your mind. What, if any, fees are you liable for if you decide to withdraw your application?

Can a Swiss landlord charge a fee if you renounce to rent an apartment?
You're not liable for any fees until you sign the rental agreement. Photo by Scott Graham on Unsplash

In some areas of Switzerland, good and reasonably priced rental properties are difficult to come by, so once you find one, you hold on to it for dear life.

But it can also happen that you change your mind for whatever reason and no longer want to proceed with the rental.

What happens then?

Some rental agencies’ registration forms include a clause stating that if you cancel after a contract has been prepared, you have to pay between 150 and 200 to cover administration costs — even if the contract hasn’t yet been signed.

This is ostensibly for all the time and effort that went into preparing the lease.

If you are unfamiliar with Swiss laws, you may feel a duty to pay these fees, believing that if you don’t, Swiss rental police will knock on your door.

But you can relax: apart from the fact that there’s no such thing in Switzerland as “rental police”, you don’t owe the agency or landlord anything.

That is because registrations and applications of any kind —  including those for rental properties — are non-binding until both parties have signed them. Up to this point, an application can be withdrawn without incurring any costs, even if the agency / landlord have you believe otherwise.

READ MORE: REVEALED: The six major Swiss cities where rents are falling

Why are landlords / rental agencies engaging in this practice?

To be fair, not all of them will attempt to make you pay for failing to sign the lease. Those who do are hoping you don’t know your legal rights, especially if you are a foreigner who (they hope) is still green behind the ears when it comes to rental regulations in Switzerland.

However, according to the official site of canton of Geneva (but this rule applies nationally), some exceptions could be admissible.

If applicants are not acting in “good faith” — for instance, by belatedly expressing their refusal to sign the lease and delaying the rental process while other potential tenants are kept waiting —  the landlord could ask to be compensated.

This is not a clear black-and-white situation though, as “good faith” calls for subjective judgements, ones that the landlord or rental agency could not make unless they have proof that candidates’ actions were dishonest — which is also difficult to prove.

But even in this case, the landlord “could only invoice his actual costs: the costs of drafting the lease contract and sending it out, for example”, according to the Swiss Tenants Association (ASLOCA).

You should also inform yourself about what your landlord can and cannot demand of you.

“You have to remember that just because something is written in the lease doesn’t mean it’s true”, ASLOCA said.

“Lease law is protective of the tenant and takes into consideration that the latter does not necessarily have the possibility or the resources to read and carefully negotiate any clause of his lease”.

If uncertain of what your rights and obligations are, this official government site provides useful information and  resources, including who, in your canton of residence, can help in case of a dispute with your landlord.

READ MORE: Tenant in Switzerland? Here’s how to apply for a rent reduction

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LIVING IN SWITZERLAND

Do foreigners in Switzerland have the same legal rights as the Swiss ?

Foreigners living in Switzerland may be wondering what their basic rights are compared to Swiss citizens. The answer depends on several factors.

Do foreigners in Switzerland have the same legal rights as the Swiss ?

There are currently 2.2 million foreign nationals living in Switzerland — roughly 25 percent of the population.

Simply put, everyone residing in the country legally, regardless of nationality, has the same basic constitutional rights as Swiss citizens do — for instance, the right to human dignity, free expression, equality, protection against discrimination, and freedom of religion, among other rights.

They also have the right to fair and equitable treatment in the workplace, in terms of wages, work hours, and other employment-related matters.

As the law states, cantons and municipalities “shall create favourable regulatory conditions for equal opportunities and for the participation of the foreign population in public life”. 

If they are arrested or imprisoned, foreigners also have the right to fair trial and to the same treatment as their Swiss-citizen counterparts, including legal representation and due process of the law.

Even those who are subject to deportation have the right to be represented by a lawyer.

And the Swiss legal system doesn’t necessarily favour Swiss litigants over foreign ones. For instance, in some cases, foreign nationals whose request for naturalisation was denied but who then appealed the decision, eventually won.

The most recent example is a man in the canton of Schwyz whose application for citizenship was rejected due to a minor car accident, but a Swiss court overturned the decision, ordering that the man be naturalised this year.

READ MORE : Foreigner wins appeal after being denied Swiss citizenship due to car accident

Where the rights and privileges differ between foreigners and Swiss, as well as among foreigners themselves, is when it comes to work and residency rights.

 EU / EFTA nationals

People from these countries, who have B or C permanent residence status have sweeping rights in terms of residence, employment (including self-employment), and home ownership.

The only right that is denied them is the vote, though some cantons and communes grant their resident foreigners the right to vote on local issues and to elect local politicians. 

READ MORE : Where in Switzerland can foreigners vote?

Apart from the limit on political participation, EU / EFTA nationals can live in Switzerland in pretty much the same way as their Swiss counterparts.

There are, however, some groups of foreigners whose rights are curtailed by the Swiss government.

Third country nationals

They are people from countries outside Europe, for whom various restrictions are in place in terms of entry, employment and residency.

For instance, their “future employer must prove that there is no suitable person to fill the job vacancy from Switzerland or from an EU/EFTA state”, according to State Secretariat for Migration. This could be seen as a discrimination of sorts, but that’s what the law says.

Once employed, however, “their salary, social security contributions and the terms of employment must be in accordance with conditions customary to the region, the profession and the particular sector” — in other words, no discrimination is allowed.

Another area where non-European foreigners are disadvantaged in comparison with their EU / EFTA counterparts is home ownership. While third-nation B-permit holders can buy a property to live in (but not rent out), they can’t purchase a holiday or second home without a special permission.

To sum up, all foreigners in Switzerland, regardless of their status, are entitled to fundamental “human” rights, including freedom of speech and religion, and freedom from discrimination in life and employment.

They also have the right to legal protection and representation during litigation or other court actions.

However they don’t have the right to participate in the country’s political process and, depending on their status, have equal access to residency and employment.

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