ARTICLE
11 April 2017

Zürich Tenancy Court Validates Airbnb Business Model

RA
Rihm Attorneys
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Rihm Attorneys at law is a Swiss law practice with an international outlook and counseling focus around all aspects of entrepreneurship. For more than 30 years, the firm has advised and represented companies and entrepreneurs in complex transactions and restructurings, including technology transfer as well as in state court, arbitration and insolvency proceedings including mediation proceedings. Based in the centre of Zurich nearby Paradeplatz, Rihm Attorneys at law can draw upon a well-established global network of correspondent law firms in all major business centers. Through one of its partners, Prof. Dr. Karl Pilny, the firm has recently acquired a longstanding Asian practise. Our working languages are German, English, French, Italian, Japanese, Turkish, Serbo-Croatian and Albanian. According to Chambers, Best Lawyers and Who's Who Legal, Rihm Attorneys at law is leading in the fields of M&A, insolvency and employment & compensation benefits laws.
The Zurich Tenancy Court, a specialized court for disputes amongst tenants and landlords - ruled in a decision published this week that a tenant is basically allowed to provide his or her apartment via Airbnb to paying guests...
Switzerland Real Estate and Construction
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The Zurich Tenancy Court, a specialized court for disputes amongst tenants and landlords - ruled in a decision published this week that a tenant is basically allowed to provide his or her apartment via Airbnb to paying guests, thereby applying four tests: the tenant-host must obtain the general consent of the landlord and thereby disclose the conditions of the sub-rent. The subrental payments cannot be abusive and the landlord may not suffer any substantial disadvantages from the sub-rent.

In the case of the Zurich tenant-host, none of these tests were fulfilled. As the court held, the tenant-host had not informed the landlord, had received an "abusively high rate of subrent" from the paying guests, whilst not avoiding that co-tenants in the same house were materially and constantly disturbed by the Airbnb-guests.

The tenant-host had misstated towards the Tenancy Court the number of subrentals. The court has consulted the platform and concluded that the apartment has been rented at least twelve times (instead of three to four times as indicated) at a princely price of CHF 220 francs per night plus cleaning costs of CHF 60 to CHF 80.

As a result of the abusive subrental payments and the false statements in the tenancy proceedings, the Tenancy Court prohibited the tenant-host from any further sub-letting via Airbnb and other platforms, whilst he was ordered to restitute his landlord for the illicit profits made.

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ARTICLE
11 April 2017

Zürich Tenancy Court Validates Airbnb Business Model

Switzerland Real Estate and Construction
Contributor
Rihm Attorneys logo
Rihm Attorneys at law is a Swiss law practice with an international outlook and counseling focus around all aspects of entrepreneurship. For more than 30 years, the firm has advised and represented companies and entrepreneurs in complex transactions and restructurings, including technology transfer as well as in state court, arbitration and insolvency proceedings including mediation proceedings. Based in the centre of Zurich nearby Paradeplatz, Rihm Attorneys at law can draw upon a well-established global network of correspondent law firms in all major business centers. Through one of its partners, Prof. Dr. Karl Pilny, the firm has recently acquired a longstanding Asian practise. Our working languages are German, English, French, Italian, Japanese, Turkish, Serbo-Croatian and Albanian. According to Chambers, Best Lawyers and Who's Who Legal, Rihm Attorneys at law is leading in the fields of M&A, insolvency and employment & compensation benefits laws.
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