What to do when your tenant doesn’t pay their rent?
Rent payments are firmly planned income for landlords. Therefore, as well as being frustrating, missing rent payments can cause significant financial harm. When tenants fail to pay their rent, many property owners suddenly face major challenges, such as paying mortgage interest out of their own pocket. Unfortunately, most landlords are faced with missing rent payments sooner or later. When this happens, it is vital to quickly take the right steps while acting in a legally compliant manner. In this article, we will provide a step-by-step guide on how to quickly remove tenants who are unwilling to pay their rent.
Book a free initial consultation with our experts.
Book a callHighlights
- eviction proceedings If your tenant doesn’t pay rent, initiate by sending a formal reminder letter
- Ensure compliance with legal protocols by addressing each spouse individually in the reminder notices
- fails to remedy If the tenant the situation within the stipulated 30-day period, proceed with the termination
- non-compliant If tenant remains , pursue judicial expulsion; after court's decision, allow 10 days to vacate
- non-compliance, In cases of continued resort to police eviction under Swiss lawful authority
Content
- What to do when your tenant doesn’t pay their rent?
- Procedure - How do you remove tenants who are unwilling to pay?
- Reminder with a threat of termination
- Termination without notice
- Request judicial expulsion
- Expulsion order
- Decision of the court - expulsion
- Apply for a certificate of enforceability
- Police eviction
- Limitation of rental claims: An overview
Procedure - How do you remove tenants who are unwilling to pay?
We explain step by step how you should proceed if a tenant stops paying their rent. It takes about 3-4 months from sending a reminder with a threat of termination to eviction by the police.
Book a free initial consultation with our experts.
Book a callReminder with a threat of termination
According to Art. 257d CO, in order to give a notice of termination within 30 days, you must first send the tenant a reminder with a threat of termination. In this letter, the tenant is requested to pay the outstanding rent within 30 days; otherwise he/she will be given termination without notice.
The following points should be noted:
- This letter must be delivered to both spouses individually in the case of married couples (i.e., to all contracting parties).
- Include the outstanding amount and the account number to which the rent should be paid.
- The payment deadline must be 30 days from the delivery of the letter.
- Keep the receipt of the registered mail or get a written receipt in the case of personal delivery.
Formal errors must be avoided
Only amounts due (including ancillary costs) should be claimed in formal reminders and listed in detail to avoid formal errors. Rent deposits or deferred rent should not be claimed.
Reminders and notices must be sent separately and in separate envelopes to both parties in the case of married couples or registered partnerships. Pay attention to details, such as the correct spelling of the tenant's name, to prevent challenges.
Book a free initial consultation with our experts.
Book a callTermination without notice
If the tenant doesn't comply with the 30-day payment period, the notice of termination can be given at the end of the month with at least 30 days' notice.
The following points should be noted:
- The cantonal notice form must be used and the legal remedy must be printed out.
- In the case of married couples, this letter must be sent to both spouses individually.
- The handover date and time of the residence should be included in a cover letter.
The tenant may initiate conciliation proceedings and contest the termination. If the termination is contested in the legal petition without legally conclusive argumentation, you can choose not to attend the conciliation proceedings. If you do not appear or there is no settlement, the tenant will be issued a notice of action anyway.
Book a free initial consultation with our experts.
Book a callRequest judicial expulsion
If, at the handover date, the tenant is still in the house and refuses to leave, the next step is to apply for a judicial eviction. This is best done in summary proceedings (see form below). The application must be submitted in duplicate to the competent civil district court.
Form - Request in proceedings for legal protection in clear cases under Art. 257 CCP
Legal request:
- order the other party to vacate the flat .......................................... at .......................................... (address) in .......................................... (place) within 10 days of the decision becoming final and to hand over the keys to the plaintiff.
- If the other party does not leave the above-mentioned flat within 10 days of the decision becoming final, the requesting party shall be authorised to evacuate the flat with police assistance at the expense of the other party.
- with costs and compensation to be borne by the other party.
- the offence against a possible judicial decision shall be punished in accordance with Art. 292 SCC
Justification:
The tenant party has not left the flat despite termination without notice on xx.xx.xxxx.
Evidence:
- Enclose the delivery confirmations and receipts of all registered letters
- Copy of the reminder with threat of termination
- Copy of the official termination form
- Other possible evidence
Book a free initial consultation with our experts.
Book a callExpulsion order
The court sends out an order giving the other party 10 days to present evidence proving that the dismissal was unlawful. If no evidence is presented, or if the evidence given is rejected, the court orders the expulsion with a deadline of approximately 10 days.
Book a free initial consultation with our experts.
Book a callDecision of the court - expulsion
After the decision, the court gives the tenant about 10 days to move out. The decision can still be appealed to the cantonal court within 10 days. Only after this period does the decision become legally binding.
Book a free initial consultation with our experts.
Book a callApply for a certificate of enforceability
A certificate of enforceability is required to enforce a police eviction, and it is recommended that this be obtained from the court where the eviction order was made after the appeal period has expired. If the tenant disregards the expulsion, the judgment can then be enforced promptly.
Book a free initial consultation with our experts.
Book a callPolice eviction
Suppose the tenant party is still in the flat after the expulsion deadline. The certificate of enforceability can then be sent with a signed application for police eviction to the Civil and Administrative Law Enforcement Agency by e-mail or post.
The owner must carry out the eviction itself. The police are present and only intervene if the tenants try to resist the eviction. The easiest approach is to change the locks, leave the tenant's belongings in the property, and then file an eviction request. The tenants will then be asked to collect their belongings within approximately 2 weeks. If this does not happen, the items may be disposed of.
It is also important to note that after termination, the outstanding rent can be claimed through debt collection. The rent deposit also serves as security.
Book a free initial consultation with our experts.
Book a callLimitation of rental claims: An overview
The statute of limitations for rent claims comes into effect if a landlord does not assert his claims against the tenant in due time.
In such cases, the tenant is no longer obliged to pay the outstanding amounts.
Article 127 of the Code of Obligations states that the general statute of limitations period is 10 years unless federal civil law dictates otherwise. However, Article 128 of the Code of Obligations reduces this period to 5 years for rent and leasehold interest.
Thus, tenants who have not paid their rent over a period of five years and have not been asked to pay by the landlord no longer have to pay those outstanding amounts.
The limitation period begins as soon as the rent is due, usually at the end of each month. However, depending on the canton or municipality, other due dates may apply or be stipulated in the contract.
Outstanding operating costs also become time-barred after 5 years. This period starts at the end of the respective billing period or after moving out of the flat.
For example, if a tenant receives a utility bill in October 2019 for the period from 1 May 2013 to 30 May 2014, they will not normally have to pay it as the landlord's claim will be time-barred on 30 May 2019.
Some tenancy agreements stipulate deadlines within which operating costs must be settled. However, such clauses are mostly regulatory and not legal provisions, so the five-year limitation period also applies here.
The only exception is if the tenancy agreement explicitly stipulates that subsequent payments for operating costs are no longer owed if the statement is not received within the specified period.
If tenants mistakenly pay operating costs, they can reclaim them up to 10 years after payment. However, they must act within 12 months of becoming aware of the error.
Do you have questions about tenancy law? Then Nexova Treuhand would be happy to offer you a non-binding consultation appointment.
Trusted by over 250 companies
Discover the diversity of our customers
Jan LichtenbergCEO, InSphero AGAs an internationally active biotechnology company that stands for innovation and the highest quality, we work exclusively with partners who meet our high standards. Nexova consistently impresses us with exceptional service quality, robust processes, and an impressive pace. The professional, solution-oriented, and efficient collaboration allows us to fully focus on our core business. Additionally, we would like to highlight the remarkable cost savings of 35% compared to in-house accounting. We particularly appreciate how Nexova quickly understands, develops, and promptly implements complex requirements – both within Switzerland and at our international subsidiaries. We can wholeheartedly recommend the Nexova team.
Pascal Willoughby-PetitCEO, TheLearning LAB GmbHNexova AG offers highly professional accounting services that have significantly enhanced our financial management at Learning Lab. Their team is precise and reactive, always delivering accurate and timely reports while promptly addressing our queries. With Nexova AG’s support, we manage our clients’ accounts and finances more efficiently. We highly recommend Nexova AG for their exceptional accounting services.
Marco BurgerCEO, Le Café Bar GmbHFor us as a new catering company, it is essential that our trustee understands our specific needs and responds flexibly to our requirements. In Nexova AG, we have found the ideal partner who supports us competently in all fiduciary matters and actively promotes our growth.
Jörg BuckmannManaging Director, BUCKMANN GEWINNT+Uncomplicated or serious? Or is it and? A young, clever team is at work here, offering excellent services, highly uncomplicated and competent. Instead of a prestigious reception, expensive offices and chocolates, there are fast services and competent services. For me as a one-man company, this is exactly what I need.
Florian JauchCo-Founder, Arvy AGArvy AG has found an exceptional partner in Nexova AG. Their very high level of expertise in FINMA-regulated industries ensures that our financial transactions are in safe and competent hands. What sets Nexova apart is their flat-rate pricing structure, which has helped us greatly with budgeting and financial planning. As a company committed to long-term success and integrity in investments, we are very satisfied with the services provided by Nexova AG.
Patrick RissiCo-Founder, Brainiegroup GmbHFor us as an EdTech startup, it is very important that our trustee is as digital and agile as we are. With Nexova AG, we have found the perfect partner who can actively support us in our growth.
That’s what our customers say
Your feedback matters
5.0 stars
- Marc Perren
Mr. Merz has a very broad knowledge and was able to help me with all my questions. The conversation was very pleasant and very informative for me. Thank you for your support.
- Jörg Buckmann
Uncomplicated or serious? Both here. A young, smart team is at work here, offering excellent services, highly uncomplicated and competent. Instead of a prestigious reception area, expensive offices and a few small gifts, you offer fast and competent services. For me as a one-man company, this is exactly what I need.
- Martin Gerber
I have been a Nexova customer for some time now and so far I am very satisfied! Thanks to the digital working methods and high responsiveness of the client managers, little time is lost in the daily process in particular. The prices are also very fair. Nexova handles the annual financial statements for me, including the tax balance sheet. The processes are standardized, which is a great advantage for audits (AHV and taxes). The two founders are two young, innovative guys and very serious.
- Florian Kreidler
The friendly and competent Nexova employee was able to answer my questions about company car taxation quickly and specifically. Thank you very much for this!
- Reto S
When I founded my company a year ago, I needed a reliable fiduciary partner. In addition to pure accounting, Nexova also offers me very good advice on all aspects of labor law. Thanks to the E-Post solution, I no longer even have to worry about my company mail and can focus purely on my service activities. My contacts at Nexova are always very friendly and pleasant to deal with. The complete package is simply TOP and I can only recommend Nexova!
- Pascal Zumstein
Top company & friendly owners. A highly recommended trustee.
- Seb Ur
Very good and competent advice!
- Louis Revel
Very satisfied with the work done and the service provided in terms of quality and price. I highly recommend
- David Leu
Professionally at a very high level. They are very good with Excel and could also support us with automation of processes.
- Stefan Burgener
I had a few questions about remote work and was advised super and free of charge. Thank you very much!
- Luca Märki
Very good service. Good and competent advice with friendly staff. I can definitely recommend
- Edward Buchanan
The Nexova team is very professional and I felt they always had my best interests at heart. I highly recommend Nexova and will continue to refer my clients to them and trust them with my business.
- Juliam Pantano
I am impressed with their outstanding service, especially in the field of accounting services, they demonstrate a professional approach and exceptional attention. As a lawyer, I have found Nexova to be a valuable partner in the financial world.
- Marie Ospina
I had an excellent consultation with Nexova AG regarding withholding tax. Their expertise is remarkably extensive and their guidance was invaluable, I highly recommend their services. A first class experience.
- Alan SchuetzFebruary 8, 2023
The Nexova Team is an important partner to our startup, enabling us to pass all of our accounting, tax and payroll duties. We specially value their expertise with Startups and flexibility, which allows us to plan and manage our financials effectively and to focus on the bottom line of our operations.
- Raphael H.April 7, 2023
We are very satisfied with Nexova as our trustee. Thanks to the Teams group chat, I can always count on very fast response times (of a few minutes). The Teams Chat group is great. With our old trustee, we had to write mails and always had to wait a long time for an answer and on top of that we were charged for every little question. Fortunately, this is not the case with Nexova.
- Philip ReckFebruary 25, 2023
Nexova solved my problem with a non-paying tenant quickly and efficiently. I was simply overwhelmed with the situation and glad for the competent legal advice. Nexova handled everything from the reminder with threat of termination, to representation in court, to the police eviction quickly, efficiently and also inexpensively. Many thanks for the valuable help.
Independence Statement: Nexova AG is an independent private fiduciary firm. We are not a government agency or authority, and we are not affiliated with any government department or official register. All official acts, registrations, and approvals are carried out solely by the competent Swiss authorities and notaries.
Read our full Independence Statement