Leases and rentals in Switzerland: light decrease in litigation

In the second half of 2020, more than 300 fewer conciliation proceedings were recorded in the federal government than in the first six months, or 13,419

In the second half of 2020, more than 300 fewer conciliation proceedings were recorded in the federal government than in the first six months of the year, or 13,419.
In an annual comparison, the number of new cases slightly exceeds the 2019 figure, but is still average when comparing multiple years.
There were 13,164 cases resolved in the second half of 2020, 1324 more than in the previous six months.

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The work of the joint tenancy conciliation authorities remains very intensive: in 2020, a total of 27,169 new conciliation proceedings were initiated, 1426 more than in the previous year.
This could be due to the lowering of the mortgage reference rate on 2 March 2020 to 1.25%. A similar phenomenon had already occurred in the past when the rate was lowered.

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Measures to combat the coronavirus, in particular the restrictions and closures imposed on stores, restaurants and other businesses, could also explain the increase in conciliation proceedings.
It is also conceivable that the extension of the deadline for tenants to pay in the event of arrears may have had an impact on the number of settlement procedures from the second half of 2020.
This measure was part of the COVID-19 rent and lease ordinance, which was in effect until May 31, 2020.
In the second half of 2020, there were significant differences across cantons in both the number of new requests and cases resolved.
The cantons of Geneva and Ticino were particularly affected by the increase in applications, while the cantons of Lucerne, Basel-Landschaft and Aargau saw a sharp decline.

Zurich, Geneva, Bern and Basel City on the… contrary.

Differences were also apparent in the number of cases resolved. For example, the cantons of Zurich, Geneva, Bern, and Basel-Stadt resolved many more cases than in the previous six-month period.
A differentiated analysis of the cases resolved in the second half of 2020 reveals an increase in cases of rent reduction (+ 2.6 %), payment claims (+2.6 %) and defects in the leased property (+1.6 %). However, there were no significant increases in the multi-year comparison.

Tätigkeit der paritätischen Schlichtungsbehörden
Tätigkeit der paritätischen Schlichtungsbehörden im 2. Halbjahr 2020
Activité des autorités paritaires de conciliation
Activité des autorités paritaires de conciliation pour le deuxième semestre 2020
L’attività delle autorità paritetiche di conciliazione
Attività delle autorità paritetiche di conciliazione nel secondo semestre del 2020

A total of 21,457 procedures were handled in the second half of the year (pending cases from the previous six months and new applications).
In 7583 cases an agreement was reached between the parties through confrontation, acquiescence or desistance, corresponding to 57.6 percent of the 13,164 procedures concluded.
In 16.7 per cent of the proceedings, i.e. in 2194 cases, conciliation failed, resulting in the surrender of the authorization to act.

662 resolved proposals for judgment, one in 20 resolved

During the reporting period, 662 motions for judgment were accepted by the parties. The proportion of settled cases is 5%.
In contrast, 281 motions for judgement were rejected, equivalent to 2.1% of settled cases, which in turn led to the granting of authorisation to bring proceedings.
In 81 property disputes up to a litigation value of CHF 2,000, i.e. 0.6% of the cases settled, a direct decision was issued.
2,363 cases were resolved otherwise due to withdrawal, non-entry into the matter, lack of subject matter or transfer to an arbitration tribunal; they accounted for 18.0% of the resolved cases.

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In civil law disputes, the decision-making procedure is preceded by an attempt at conciliation before a conciliation authority.
In the case of disputes concerning the renting and leasing of residential and commercial premises, the conciliation authority consists of an independent person, who acts as chairman, and an equal number of representatives of tenants and landlords. The procedure is governed by the Swiss Code of Civil Procedure (ZPO).