Real estate: Renting a property in Switzerland: what to do
When you are an owner, renting your property (apartment or house) is not improvised and can quickly become a real source of concern. Recognized for more than 15 years as a quality brand in real estate services, the international Swixim network recalls below the different key stages that will guarantee its success.
1 - Define the desired type of rental
Empty rental or furnished rental? Depending on the geographical location of his property, the question may indeed arise differently. Thus, if it is located in a student city it may be interesting to privilege the furnished rental, which will also consider a slightly higher rent. Similarly, in a particularly tourist region, seasonal rental can be more profitable and allows you to rent your property over a shorter period. Conversely, if the owner wants to rent his property over a long period, the empty rental will be more interesting.
2 - Fix the amount of rent
If you want to rent your property quickly and correctly, it is important to set an amount of rent that is in accordance with the local market, so as not to discourage potential tenants from the outset. We should therefore not hesitate to study the competition in order to estimate the fairest rent according to the sector. Different parameters must be taken into account in this context: the location of the property (is it in the city center, close to amenities, or more eccentric?), the living space, the number of rooms, the quality of the equipment offered etc.
3 - Manage from individual to individual or use a real estate agency?
Going through a real estate agency for the rental of your property undoubtedly saves time and greater serenity: the agency is in charge of re-editing and giving visibility to the rental offer, freezes the visits, accompanies in the choice of the ideal tenant, checks if the candidate is recommendable and solvent, drafts the lease and notice sheet, conducts the inventory, and especially relieves in case of disputes. If the tenant is a foreigner, the Agent will accompany him in all the necessary steps for his installation in Switzerland and guide him as a market expert. The agent can also act as a representative of the owner and it is therefore possible to delegate all the management of the property (collection and monitoring of rents, obtaining insurance, regularization of expenses, monitoring of any work to be done, repairs etc., setting up a new tenant in case of early departure etc.
However, these benefits come at a cost: remuneration is requested when the lease contract is signed. The latter is generally equivalent to one month’s rent, payable by the owner. An additional fee of about 5% of the sums collected annually is charged by the Agent in case of annual stewardship of the property. However, it is important to note that all these fees are tax deductible.
Taking charge of the rental of your property is not insurmountable and of course saves these commissions and management fees, but it obviously requires a greater investment in terms of time. It also requires some regulatory knowledge to avoid any claims or lawsuits.
The decision whether or not to use an Agent will therefore depend both on the objectives and the degree of personal investment that the owner intends to provide in this context!
4 - Choosing your tenant
This is a difficult and crucial question, the choice of the tenant!
If the owner chooses to use an agency, the latter is responsible for requesting all the necessary documents from the future tenant. However, if the owner chooses to manage everything himself, he must obtain all the elements to attest to the identity, but also of course the solvency of the tenant:
- a copy of his identity card, passport and residence permit if he is a foreigner.
- a copy of his last three pay slips or, for a self-employed person, of his last two balance sheets.
- a certificate from the employer or his employment contract
5 - Establish the lease and inventory
Once the tenant has been chosen, all that remains is to formalize the agreement by drafting and signing the lease. The rental contract sets the conditions and details of the provision of housing in exchange for rent. If the owner does not go through a real estate agency, it is possible to find lease models online. Be careful, however, to ensure that the model used is up to date with the latest regulations. It must contain all the information required by the law of the rent lease and particularly the notice of indexation of rent or «green leaf» which prevails the legal validity of the lease.
In case of dispute, it will be necessary to seize the court of leases with rent. It is good to know that the courts are very attentive to the protection of tenants and can requalify the lease or require a very significant rent reduction retroactive up to 10 years back in case of dispute with the owner. Your Swixim International Agent, as an expert, accompanies you at every stage of the rental of your property and even in case of dispute if you have entrusted him with the management of your object.
About Swixim International:
Founded in Geneva in 2005, the Swixim International network is anchored and has drawn its values from the shores of Lake Geneva. With 250 agents in Switzerland and Europe, Swixim International offers services and guarantees with high added value to buy, sell, rent, manage residential properties. As entrepreneurs committed to success and passionate about real estate, the Agents of the network stand out by offering a unique customer experience, proven by 97% of satisfied customers.
For more information, visit our website: www.swixim.com
Contacts Press:
Swixim international - Nathalie CAMINATI – Tel: 022 347 44 42
DELVAL RP - Laurence DELVAL - laurence.delvalrp@gmail.com
