Extraordinary termination of a tenancy agreement: reasons and notice periods

1. What is an extraordinary termination of a tenancy agreement?

Extraordinary termination ends the tenancy even outside the contractual termination dates. However, this requires a statutory reason for termination. The Code of Obligations lists these reasons. Depending on the reason, both parties can terminate the contract: both parties: tenants as well as landlords.

Extraordinary does not automatically mean without notice. Tenancy law only allows termination without notice in three cases. In all other cases, there is a notice period, which is usually three months.

2. Extraordinary and out-of-term: what’s the difference?

Out-of-term and extraordinary are not the same thing, even if they are often used that way. The out-of-term termination is not a termination in the proper sense under the law, but rather an early return of the apartment (Art. 264 CO). You don’t need a reason to terminate the rental agreement for this, but rather a reasonable and solvent new tenant.

In practice, moving out before the end of the term is the more common case: If you want to leave early because of a new job or a separation, you have no extraordinary reason for termination – but the option of finding a new tenant to take over the lease.

3. When can tenants give extraordinary notice to terminate their lease?

For tenants, the Code of Obligations specifies three cases:

• a serious defect, which is not remedied

• important reasons that make the tenancy unreasonable

• the death of the tenant

If a serious defect is not fixed

You can terminate without notice, if the landlord is aware of a defect and does not remedy it within a reasonable period of time (Art. 259b(a) CO). The condition is that the defect makes the apartment uninhabitable or significantly impairs it. For example, permanently broken heating or a severe mould infestation.

For termination without notice, three steps are recommended: report the defect report in writing, set a a reasonable period of time to remedy the defect and only then terminate the contract. You can find out what counts as a defect and who has to remedy it in the article on Repairs in a rental apartment.

Important reasons that make the tenancy unreasonable

For important reasons can both parties terminate the contract at any time with the statutory notice period (Art. 266g CO). For apartments, the notice period is three months.

The reason must make the rental agreement objectively unreasonable The requirements are strict. Important reasons include, for example:

• a serious change in economic circumstances

• an involuntary lack of money due to a loss of maintenance payments

• a transfer to another place of employment (e.g. for civil servants)

• Accident or illness

Death of the tenant

After a death, relatives have to deal with many things at the same time. For the apartment, the following applies: The rental agreement continues and is transferred to the heirs over. They can terminate it with the statutory notice period of three months before the next statutory date (Art. 266i CO).

4. When can the landlord terminate the lease?

The landlord can give extraordinary notice of termination in three cases in three cases:

• in the event of late payment

• in the event of a breach of the duty of care or the duty of consideration

• in the event of urgent personal use following a change of ownership.

Late payment

If the rent is not paid, the landlord must first set a payment deadline of at least 30 days in writing and threaten termination. If payment is not made, they can terminate the contract with a notice period of at least 30 days to the end of a month termination (Art. 257d CO). Without the reminder setting a deadline and threatening termination, the termination is not valid. A termination without notice due to outstanding rent does not exist for rental apartments.

violation of the duty of care or consideration

Anyone who, despite a written reminder continues to breach the duty of care or consideration may be given notice with a period of at least 30 days to the end of a month can be terminated (Art. 257f para. 3 CO). The condition is that the continuation of the tenancy can no longer reasonably be expected of the landlord or the residents. Termination without notice is only possible in one case: if the tenants cause intentional serious damage (Art. 257f para. 4 CO).

Urgent personal use after a change of ownership

If the property is sold, the tenancy agreement is transferred to the new owner. They can terminate it with the statutory notice period to the next statutory date if they claim urgent personal use for themselves or close relatives (Art. 261 para. 2 let. a CO). If the new landlord terminates the lease earlier than permitted, the previous landlord is liable for the damage.

5. How must extraordinary termination be effected?

For residential and commercial premises, both parties must terminate in writing (Art. 266l para. 1 CO). The notice of termination must also be signed by hand be. A verbal termination is not sufficient. The following also applies to the landlord: They must use a form approved by the canton This form must state how the tenant can contest the termination or request an extension (Art. 266l para. 2 CO).

Tip: Send your notice of termination as a registered letter. This way, you can prove when the notice of termination arrived. If the apartment is a family apartment, the landlord must deliver the notice of termination and also the payment deadline with a threat of termination to the tenants and to the spouse or registered partner separately (Art. 266n CO).

6. What can you do about extraordinary termination?

You have 30 days after receipt of notice of termination to challenge it with the conciliation authority by submitting a conciliation request to challenge it (Art. 273 para. 1 Swiss Code of Obligations). After that, the right is forfeited.

The period begins on the day of service. For registered letters, the day after the collection invitation is posted counts. Not after the seven-day collection period has expired. You should therefore collect the registered letter immediately.

Important: The tenancy cannot be extended in the following cases:

• in the event of payment arrears

• in the event of a serious breach of the duty of care or consideration

• in the event of the tenant’s bankruptcy