Business Tenancy Act

An important sub-complex of these issues concerns the legal situation in the context of tenancies. Depending on the circumstances, this can result in an allocation of risk to the detriment of the tenant, but in exceptional cases also to the detriment of the landlord. In general, the principle of "pacta sunt servanda" applies, i.e. contracts must be complied with. If a tenant can no longer use the rental property as a result of official measures or for other reasons, he is still obliged to pay the rent. According to certain doctrines, this may be different if a rental property, such as a restaurant or staff canteen, can no longer be used for its intended purpose because the state closes the relevant institutions.

In response to two parliamentary motions, the Federal Council adopted the dispatch on the Federal Act on Rents and Leases during Business Closures and Restrictions to Combat the Coronavirus (Covid-19 Business Rent Act) on September 18, 2020. As the title of the bill states, the law only applies to business rents for the period during the lockdown, i.e. from 17 March to 21 June 2020. According to the politically controversial bill, tenants will only have to pay 40% of the rent during the lockdown. Net monthly rents of up to CHF 20,000 are affected, whereby one of the two parties can unilaterally waive the application of the law in the range of monthly rents between CHF 15,000 and 20,000.

The law has been heavily criticized by landlords in particular. Both legal and economic arguments have been put forward. From a legal perspective, the law is indeed treading a delicate path by breaking the otherwise ironclad law of non-retroactivity and thus creating a dangerous precedent, according to opponents of the bill. In terms of economic policy, it is criticized that the law lumps everything together without differentiation and thus creates distortions of competition. It is also criticized that the bill leaves various legal questions unanswered and thus creates legal uncertainty.

The bill is currently being discussed in parliament and will most likely be put to the people as a result of a legislative referendum.

As President of the Swiss Homeowners' Association, former National Councillor and beelegal founding partner Hans Egloff is an expert in tenancy law. He and a specialized beelegal team are able to competently advise private individuals and companies on complex tenancy law issues. For legal questions and non-binding initial contacts, please contact in particular:

RA Hans Egloff
RA Dr. Philipp Engel
RA Jasmin Hotz
RA Dr. Stefan Fink