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RENTING

Renting in Zurich: Why sticking to one apartment will save you money

Renters in Zurich who frequently move around will pay more rent than those who have been living in their flat for a long time, a new study reveals. But why is that?

The Swiss city of Zurich.
The Swiss city of Zurich. Photo by Ilia Bronskiy on Unsplash

So far, there has been little information at the cantonal level on the extent of the difference between those recently agreeing their entering a rental agreement and those who have been renting long-term. A new publication by the Statistical Office of the Canton of Zurich now sheds light on the situation.

According to the study, households that have not changed residence for a long time pay less rent than those who move around.

For example, between 2016 and 2020 those in long term rental agreements paid on average a net monthly rent of CHF 1,840 for a four-room apartment in the canton of Zurich and those newly moving in paid a whopping CHF 2,100.

READ ALSO: Where are property and rent prices rising the most in Switzerland?

However, this figure conceals major differences in terms of the year the property was built as well as the region it is situated in. Apartments in Zurich built between 1945 and 1970, for instance, are the cheapest to rent, while newly built apartments are understandably the most expensive. Gunning for an apartment in the city or near the lake will also set you back more than relocating to the countryside – no matter the size.

READ ALSO: How can I reduce my rent price in Switzerland?

New rent agreements are more costly than longterm rents – especially in the city of Zurich

If we are to compare the rent of the households moving in with the rent of the longterm households, the same pattern emerges regardless of the apartment size and price region: Longterm households essentially pay less than new renters.

The differences between longterm and new rents are particularly notable in the city of Zurich where the vacancy rate is also lowest, and most households rent, thus demand is always high. On the other hand, the differences in rent are small in the less expensive municipalities, most of which are in the northern and western regions of the canton.

READ ALSO: How to find a flat to rent in Zurich

So, what’s behind the difference?

The study found that households opting to move out of their residence have often not lived in their apartments very long and therefore already pay higher rent prices. As a result, the rent cost for the subsequent vacant apartments is already significantly higher than those apartments in longterm rents. Hence the reason why those moving in will also pay a higher rent price.

Still, there are exceptions, especially in the cheaper, mostly peripheral communities in the north and east of the canton of Zurich where around 70 per cent of households rent.

As a general tip, it makes more sense to commit to an apartment longer term if you are looking to save money on rent.

 

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RENTING

Can I get out of a rental contract in Switzerland?

What are rules in Switzerland if you want to move out of your current apartment before your rental contract is officially over?

Can I get out of a rental contract in Switzerland?

In Switzerland, tenants who plan to move out of their apartment must follow the timeline set out in their rental agreement.

The notice period is usually three months, so your landlord must receive your ‘termination’ letter no later than one day before the start of the notice period.

For instance, if you plan to move out on June 30th, then your letter must arrive at the management company by March 29th.

Sometimes, a contract will specify a different notice period; it can’t, however, be shorter than the statuary three months, but could be longer.

If nothing is mentioned in the lease about the termination deadline, then the three-month timeline is the valid one.

But what if you have to ‘break’ the contract and move out earlier?

This is not an uncommon practice in Switzerland, as circumstances may dictate that you need to relocate for professional, or any other reasons.

You will be able to do so, but not without certain ‘consequences.’

First, you will have to notify your landlord, in writing, of your intention to move out early, and indicate the date.

The rule in this situation is that you must find someone else to take over the remainer of your term, who would move in and pay the rent — this is known as a ‘lease takeover.’

However, the new tenant must first be approved by the landlord.

The information the candidates need to provide includes official ID, residence permit (if they are not Swiss), employment information (including income), statements showing absence of criminal record and debt collection proceedings, as well as other documents outlined here:

READ ALSO: What documents do I need for renting an apartment in Switzerland? 

If the person(s) you propose is / are accepted by the landlord, then you are in the clear, but make sure you receive a written confirmation attesting to that.

If the candidate is rejected by the landlord, you will be in an unenviable situation of having to pay the rent for the apartment until your contract ends.

There are, however, exceptions.

You can break your lease without consequences — that is, without having to find a new tenant or continue to pay the rent, if:

  • Rental property is damaged during your tenancy, but not through your fault. However, if as a result of the damage, the property is not fit to be occupied,  you can move out.
  • The same applies to serious deterioration of your health, which requires you to be hospitalised, or undergo medical treatment in another facility, longterm.
  • Other situations, like divorce or job loss may also give you a way out of the lease, but it is up to the landlord’s discretion and good will to let you do that.
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