Termination of lease for non-payment
Termination of lease for non-payment
Unfortunately, owners of residential or commercial premises are sometimes confronted with tenants who fail to pay their rent on time. But while Swiss law provides for rights that are often discussed, it also imposes obligations on both landlords and tenants.Article 257d of the Swiss Code of Obligations allows landlords to send tenants in arrears a formal notice to pay their rent without any valid legal justification and, as a last resort, to terminate the lease. Given the severity of this measure, a number of essential conditions must be met: firstly, as a landlord, you are obliged to give your tenant in arrears at least thirty days' notice to pay. This notice must be given in writing and must specify the unpaid rent and ancillary costs. It must also expressly state that failure to pay within the grace period will result in termination of the lease. If the tenant fails to pay on time, you will be entitled to terminate the lease early, i.e. with a minimum notice period of thirty days to the end of the month. A tenant who causes such a breach of contract through his own fault must bear the consequences and may be required to pay damages equivalent to the rent fixed in the contract that the landlord will not be able to collect between its early termination and the ordinary expiry date of the lease. If the now ex-tenant fails to return the premises despite termination, he will be liable for "compensation for unlawful occupation" corresponding in principle to the old rent, since it is obviously impossible for him to move in without untying his purse. Once he has left the premises, whether willingly or by force, he will still owe the equivalent of these rents until the lessor finds a new tenant, but at the latest, as indicated above, until the end of the term fixed in the lease, if the latter has expired or has been terminated in the ordinary way.In this respect, it should also be emphasised that the lessor cannot stand idly by and try to reduce the damage caused by trying to find a new tenant. As always, tenancy law is fairly formalistic, and it is imperative that you comply with the requirements and deadlines imposed by law. Failure to do so could render your termination null and void or potentially voidable.
