Tenant does not pay rent, termination, expulsion, debt collection

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The notice of termination

First check the lease agreement with regard to the notice period and the end of the lease term. According to the Swiss Code of Obligations, the minimum notice period is 6 months for commercial premises. Longer notice periods are sometimes negotiated. The lease can be terminated for the term. Most leases provide for tacit renewal if neither party terminates the lease. If a fixed term has been agreed upon, no termination is necessary and the lease ends on the scheduled date.

Send termination letter

The letter of termination of the lease must be sent to the management respectively to the landlord by registered letter. It must contain the following items:

• your contact details (name, address, and preferably also business and private telephone number and e-mail)
• the respective rental property (craft premises, office, parking, etc.)
• The date when you would like to return your premises, even if it is an early return
• The letter must be signed by all the co-tenants of the lease respectively by the persons authorized to sign for the company.

Partial or conditional termination is not possible. It can only be cancelled if the other party agrees.

Reception

The period of notice shall begin to run from the day of receipt of the letter. The day of receipt is deemed to be the day on which the pickup invitation is deposited by the postman in the addressee's letterbox if it can be collected the same day at the post office counter (P.O. Box), otherwise the first working day following the attempted delivery. If the period of notice is not observed, the notice of termination shall take effect for the next relevant term.

Early surrender of business premises

As a tenant, you can be released from your lease commitments before the end of the lease term if you present at least one solvent tenant who takes over the lease on the same terms on the date you return the premises. According to the general conditions for commercial premises applied in the canton of Geneva (2010 edition), you must respect at least three months' notice for the end of a month and send the lessor within 30 days a complete file on the interested tenant. This notice period begins as soon as the landlord is in possession of the complete application file of the person taking over the lease. However, the lessor cannot be obliged to conclude a lease with the candidate you have proposed, but you are released from the lease for the date for which you have given notice if the candidate fulfils the above-mentioned conditions. If you do not find a successor tenant you will have to pay the rent until the next contractual term of the leave.

You are a landlord

Like the tenant, you must respect a notice of termination and the term of the leave. In addition, you are obliged to use the official form, otherwise the notice is void. In Geneva, there are two official forms approved by the Council of State, the notice of termination of the lease, this form is blue, and the notice of termination of the lease in the event of the tenant's arrears (art. 257 d of the Code of Obligations), this is the pink form. You should not make a mistake in this respect. If you use the pink notice of termination, you must have previously complied with the legal procedure and the legally prescribed periods of notice. If you have concluded several leases with a tenant, you must use a form for each lease.

Early termination

In some cases, extraordinary termination is possible by the owner. If you have correctly undertaken the steps required by law as a landlord, the notice period is 30 days. As for formal notice to the tenant for non-payment, you must have given the tenant formal notice to pay the late rent within 30 days. If the tenant's formal notice has not produced a positive result, you can terminate the lease with 30 days' notice for the end of a month. If you have protested, pursuant to Art. 257 f para. 3 and 4, in writing for a serious breach of the tenant's duty of care or for serious disregard for neighbours, you may also terminate the lease with 30 days' notice for the end of a month. If the tenant has committed serious damage, for example, by deliberately setting fire to the premises, you can terminate the lease with immediate effect. If the tenant is bankrupt, the landlord can ask the bankruptcy administration to provide security by setting a suitable deadline. If the security is not provided, he/she can terminate the lease with immediate effect.

© Written by Esther Lauber, Real Estate Trustee with Advanced Federal Diploma of Professional Education and Training, real estate manager
Mostly translated from French to English with DeepL, in case of doubt, the French or Germain version should apply 

More information that may be of interest to you:

Termination of a lease by a tenant
Limited or indefinite or definable duration of the lease
Noisy or disrespectuf tenant towards neighbours, what to do?
Notice of termination of the lease by the landlord using the official form required in Geneva
Premature termination of the rental agreement by the landlord
Tenant does not pay rent, termination, expulsion, debt collection