Federal Council adopts dispatch on Covid 19 business rental law

The controversial bill would require business tenants who were affected by a closure or severe curtailment in the spring of 2020 due to the Corona pandemic to pay only 40% of rent for that period.

The consultation was conducted from July 1 to August 4 and, according to the Federal Council, revealed a controversial picture: Eleven cantons, two political parties and the business, landlord and real estate associations had rejected the bill. Eight cantons, four political parties, the Swiss Association of Cities, tenants' organizations and catering and professional associations were in favor. There had been criticism of individual provisions from both sides: For some, the bill went too far, for others not far enough.

Based on the feedback, the bill has been adjusted in certain areas, but overall, the Covid 19 Business Rent Act is closely aligned with the wording of the two identical commission motions from the National Council and the Council of States, the Federal Council further states.

Other regulations remain valid

The law is aimed at tenants and lessees of businesses or establishments such as restaurants or hair salons that were closed due to the Covid 19 ordinance, or health care facilities that had to reduce their activities due to the same ordinance. They should only have to pay 40% of the rent or lease for the period of the enacted closure. In the case of healthcare facilities that had to reduce their operations, this applies for a maximum of two months.

The regulation refers to a net rent or net lease of a maximum of CHF 20,000 per month and object. In the case of a rent or lease between CHF 15,000 and CHF 20,000, both parties to the lease are to be able to waive the statutory regulation with a unilateral written notice. Express agreements of the contracting parties to the contrary shall remain valid.

Landlords and lessors who find themselves in considerable economic hardship as a result of the loss of rent or lease payments are to be able to apply for financial compensation from the federal government. This would be the case, for example, if the pure cost rent is applied or if it can be proven that the financial loss threatens the economic existence of the applicant, according to the Federal Council.

In its communication, the Federal Council reiterates that it is sticking to its previous position, according to which interference in private law relations between tenants and landlords should be avoided. It therefore refrains from asking parliament to approve this draft law. A monitoring report on business rents is to be published in the coming weeks. (ah)