Temporary Permits for Intermediate Use in Switzerland

What are temporary permits for intermediate use?

Temporary permits for intermediate use offer a flexible solution for vacant commercial properties. They allow premises to be used for a limited period until a long-term lease or another use for the property is found. Such intermediate uses can range from pop-up stores and artist studios to event spaces or temporary offices.

In Switzerland, intermediate uses are becoming increasingly important, especially in urban areas where vacancies are expensive and there is simultaneously a high demand for flexible spaces. The temporary permit regulates the legal and practical framework conditions for this temporary use and protects both landlords and tenants.

For you as a landlord, this means an opportunity to bridge vacancies while actively managing your property. For tenants, it opens up cost-effective options to test business ideas or implement short-term projects without making a long-term commitment.

Legal framework for intermediate use

The legal framework for temporary permits and intermediate uses in Switzerland is mainly based on the Code of Obligations (CO), specifically the articles on leases (CO 253ff). However, there are some special features to consider with intermediate uses that differ from classic tenancy agreements.

Tenancy agreement or loan agreement?

With intermediate uses, the first question is whether a classic tenancy agreement or a loan for use agreement (CO 305ff) should be concluded. While rent is paid in a tenancy agreement, the use can be free of charge in a loan agreement. Both variants have different legal consequences, especially regarding protection against dismissal and liability.

In practice, tenancy agreements with shorter terms and simplified notice periods are often concluded for intermediate uses. This offers both parties more flexibility than a long-term commercial lease.

Notice periods and contract duration

A key aspect of temporary permits is the notice period. For commercial premises, longer notice periods generally apply according to CO 266a, unless otherwise agreed. However, shorter notice periods are often agreed upon for intermediate uses to increase flexibility.

It is important that such deviations are clearly stated in the contract. Typical terms for intermediate uses are between three months and two years. An extension option can also be agreed upon if both parties wish.

Change of use and building permits

If the intermediate use involves a change in the previous use of the property, building permits may be required. This is particularly relevant if, for example, a former office space is to be used as an event space or production facility.

The requirements vary depending on the canton and municipality. Generally, a temporary change of use requires a notification or even a permit from the local building authority. It is advisable to clarify this early on to avoid subsequent legal problems.

Security requirements for temporary permits

Strict safety regulations also apply to temporary uses, which you as a landlord must strictly observe. These concern, in particular, fire protection, structural safety, and health protection.

Fire protection regulations

Fire protection is one of the most important topics when renting commercial spaces. Depending on the type of use, different requirements may apply. For event spaces or rooms open to the public, the regulations are often stricter than for pure office spaces.

Ensure that escape routes are clearly marked, fire extinguishers are available, and the maximum number of people is not exceeded. For larger events, a fire safety inspection by the responsible authority may also be required.

Structural safety and statics

For intermediate uses that require structural adjustments or involve moving heavy loads, the statics of the property must be checked. This applies to storage or production areas, for example.

As a landlord, you are obliged to hand over the premises in a safe condition. Inform the tenant about any restrictions and record them in the contract.

Insurance questions

Clarify the insurance situation before concluding the contract. The tenant should have liability insurance that covers damages to the property or third parties. As a landlord, you should inform your building insurance about the temporary use, as this can change the risk profile.

In some cases, it may make sense to take out additional insurance for the duration of the intermediate use, especially for high-risk types of use.

Advantages for landlords

Temporary permits and intermediate uses offer numerous advantages for you as a landlord. They are not only a pragmatic solution for vacancies but can also open up strategic opportunities.

Income during vacancy periods

The most obvious advantage is generating income, even if a long-term lease is not possible. Even a reduced rent for intermediate uses is better than a complete vacancy, where you still have to bear incidental and maintenance costs.

Reduction of maintenance costs

Vacant properties require regular maintenance to prevent damage from moisture, vandalism, or decay. Through active use, the property is occupied and maintained, which saves costs in the long run.

In addition, the intermediate tenant often takes over minor maintenance work or reports problems early, so that major damage can be avoided.

Flexibility in marketing

With an intermediate use, you are not forced to conclude a long-term tenancy agreement that may not be optimal. You retain the flexibility to use the property differently or sell it at a later date.

At the same time, you can use the intermediate use as a marketing tool: A creative or innovative use can increase the attractiveness of the property and draw in potential long-term tenants.

Revitalization of the neighborhood

Pop-up stores, cultural events, or co-working spaces revitalize the surroundings and can lead to a higher demand for commercial spaces in the area.

In the long term, this can also increase the value of your property, as a lively environment is attractive to many tenants.

Tax aspects

Income from intermediate uses is relevant for tax purposes and can be booked as rental income. At the same time, you can continue to claim maintenance costs and depreciation. It is worthwhile to discuss the tax implications with a fiduciary to optimally use all possibilities.

Conclusion

Temporary permits for intermediate uses are an intelligent strategy to make meaningful use of vacant commercial properties. They offer you as a landlord financial benefits, reduce maintenance costs, and create flexibility for the future marketing of your property.

The legal framework is based on the Code of Obligations, where individual agreements regarding notice periods and contract duration can be made. It is important that you observe all relevant safety requirements such as fire protection and building permits, and communicate these clearly with the tenant.

The advantages for landlords are diverse: from additional income and revitalizing the neighborhood to tax optimizations. Intermediate uses can also be a creative way to present your property in a new light and make it more attractive in the long term.

If you are considering offering your commercial property for an intermediate use, you should prepare well: clarify legal questions, define the permissible types of use, and draft a transparent contract. This ensures that the intermediate use becomes a successful solution for both sides.

Note: This article is for informational purposes only and does not constitute legal advice. For specific legal questions regarding tenancy agreements, permits, or safety requirements, we recommend consulting a lawyer specialized in real estate law or the responsible authorities.