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Old 02.06.2020, 15:13
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To rent out or live in

Our new apartment will be complete be handed over in few months.

We have been deliberating on the decision - to move into it or rent it out.

We considered -
We are quite happy in the current apartment. Kids have their friends all around, it is close to their school as well.
The potential rent from new apartment is higher than what we pay currently.
If we decide to stay back, probably save considerable cost (refurnishing).
For tax purposes, I guess it makes no difference, as nominal rent will be considered income any way.
Emotionally, we like to live in the new one as it is brand new, but we both also think logically.

Is there any thing else I shall be considering?

Many thanks for your inputs.
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Old 02.06.2020, 15:29
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Re: To rent out or live in

Do you have a mortgage? If you do you need to talk to your bank in order to let out your new apartment.
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Old 02.06.2020, 15:32
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Re: To rent out or live in

Thank you.
Banker is OK with renting out, although the interest rate will be slightly higher. Before we sign the mortgage, I need to decide.
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Old 02.06.2020, 19:52
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Re: To rent out or live in

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Our new apartment will be complete be handed over in few months.

We have been deliberating on the decision - to move into it or rent it out.

We considered -
We are quite happy in the current apartment. Kids have their friends all around, it is close to their school as well.
The potential rent from new apartment is higher than what we pay currently.
If we decide to stay back, probably save considerable cost (refurnishing).
For tax purposes, I guess it makes no difference, as nominal rent will be considered income any way.
Emotionally, we like to live in the new one as it is brand new, but we both also think logically.

Is there any thing else I shall be considering?

Many thanks for your inputs.
Looks like you've thought it through pretty well, especially your kids' situation.

I'd also consider traffic (both in terms of noise, and any driving you need to do), public transport options, access to shops & amenities (eg, public pool), and the general "feel" of the area, if it's not close to your current place.
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Old 02.06.2020, 20:59
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Re: To rent out or live in

If you are Non-EU you may not be allowed to rent it out...
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Old 03.06.2020, 10:29
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Re: To rent out or live in

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If you are Non-EU you may not be allowed to rent it out...
Thanks. As I hold a C permit, this restriction does not apply.
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Old 03.06.2020, 10:39
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Re: To rent out or live in

If there aren't going to be any problems renting out and no huge financial ramifications, I would stay put. Moving is costly. You will need movers, cleaners, will need to buy new furnishings, not to mention the huge stress of packing and unpacking stuff. Imagine sorting out the cellar before moving.

More importantly if the children are happy and the school is good, I wouldn't move. It takes time for children to adjust. You don't know if your new neighbours will be as nice as the current ones. If you are happy where you are, I would say do not feel under pressure to move just because you will be the owner and the tenant.
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Old 03.06.2020, 11:07
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Re: To rent out or live in

As other people mentioned, you have to carefully read your mortgage contract. Often mortgage contracts do not allow you to rent the property and penalize this.

Completely unhelpful (because I've only heard this), but I've heard that as long as they are getting their regular payments, banks almost never check or care who is living in the house.

That said, if you are happy where you are living, it might really make sense.

One thing that I'd like to add is that you should consider the risk of being a landlord. Are you capable of handling the following situations...
1. The tenant badly damages your apartment.
2. Your tenant behaves badly and you have to mediate between your tenant and neighbors?
3. Your tenant can't or doesn't pay rent --> it can take months to evict a non-paying tenant. They'll owe you the money, but if they can't pay, you'll never get it.
4. You might not be able to suddenly move into your appartment when you want to. Switzerland (at least Zürich) gives owners the right to evict tenants if they are moving into an apartment for personal use, but it can take quite a while (if the tenant claims that they'll have a hardship).
5. Can you handle periods of time when the building is empty?

good luck...
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Old 04.06.2020, 18:07
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Re: To rent out or live in

Many thanks, I had not considered all risks, especially # 5.

I haven't fully explored the option of using a real estate agency to handle the contract, rent collection etc. I assume it will be expensive. Will be greatful if any one can share experience, info.

BTW, I found below link which gives a good summary of tenant/ Owner rights & obligations.
https://www.bwo.admin.ch/dam/bwo/de/...f/englisch.pdf


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As other people mentioned, you have to carefully read your mortgage contract. Often mortgage contracts do not allow you to rent the property and penalize this.

Completely unhelpful (because I've only heard this), but I've heard that as long as they are getting their regular payments, banks almost never check or care who is living in the house.

That said, if you are happy where you are living, it might really make sense.

One thing that I'd like to add is that you should consider the risk of being a landlord. Are you capable of handling the following situations...
1. The tenant badly damages your apartment.
2. Your tenant behaves badly and you have to mediate between your tenant and neighbors?
3. Your tenant can't or doesn't pay rent --> it can take months to evict a non-paying tenant. They'll owe you the money, but if they can't pay, you'll never get it.
4. You might not be able to suddenly move into your appartment when you want to. Switzerland (at least Zürich) gives owners the right to evict tenants if they are moving into an apartment for personal use, but it can take quite a while (if the tenant claims that they'll have a hardship).
5. Can you handle periods of time when the building is empty?

good luck...
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Old 04.06.2020, 18:41
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Re: To rent out or live in

We used an Agency once. They charge a percentage of the rent. I found that they were a little easier on the tenant than we would have been ... And they didn’t really find the cheapest repairpersons. It wasn’t their money.

And beware of hidden clauses. Our’s had one that gave them 5% if our tenant bought the place from us. We didn’t think that was very likely but guess what? We sorted it in the end but it was an unexpected complication.
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Old 04.06.2020, 22:43
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Re: To rent out or live in

agencies can be crap and unresponsive, and they cost money.

My landlord handles everything personally even though he wouldn't need to and it's the best thing.
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