How do I plan a renovation without displacing the tenant?

The roadmap: How to successfully renovate existing buildings

The legal basis: Obligation to tolerate vs. reasonableness

Before you hire your first tradesperson, you need to understand the legal situation regarding renovations with tenants . Generally speaking, tenants must tolerate work necessary to remedy defects (maintenance) or repair damage. Things become more complex with improvements that increase the property's value (e.g., installing a modern kitchen, adding a balcony). These are only permissible when renovating with tenants if they are reasonable for the tenant and the tenancy agreement has not been terminated.

A minor renovation is almost always acceptable. However, a complete overhaul, where the water runs dry for weeks and the roof is missing, makes renovating with tenants practically impossible. The line is blurry . Important for you: You must announce the renovation project to your tenants in a timely manner. The law doesn't prescribe a fixed deadline, but in practice, 2 to 3 months' notice is considered the minimum for major projects. An unannounced construction site entitles the tenant to an immediate halt to work.

Communication: The key to success

The biggest risk when renovating with tenants is not technical, but human. Uncertainty breeds resistance. Inform your tenants about the renovation project as early as possible . A notice in the stairwell is not enough. Invite them to an information session or seek personal conversations. Explain :

• What work is being done? (e.g., new windows, riser renovation).
• When does it take place? (Detailed schedule).
• Why is it necessary? (e.g., lower heating costs through insulation).
• How does it affect daily life? (Noise, dust, access to the apartment).

When renovating with tenants, you need to show understanding. For you, it's an investment; for the tenant, it's an intrusion into their privacy. Designate a contact person (site manager) who is available for the tenants. Tenants who feel their concerns are taken seriously during renovations are more likely to tolerate noise than those who feel ignored.

Logistics and time management: speed is key.

Renovating with tenants is a different story than rebuilding. Every day of noise is nerve-wracking. Concentrate the work. Instead of sending tradespeople repeatedly over months, bundle the work together.

• Kitchen/Bathroom: Use prefabricated elements. A bathroom renovation can be completed in 10 to 15 working days when renovating with tenants , provided it is perfectly planned.
• Riser renovation: Replacing the vertical water pipes is the trickiest part of renovating with tenants . This requires opening up walls in the apartments. Plan this work so that water and sewage services continue to function in the evenings.

Offer solutions: If the bathroom is unusable for two weeks, set up portable showers/toilets in the courtyard or offer a vacant apartment in the building as a "sanitary shelter." Such gestures determine whether the renovation project will be accepted by the tenants.

Rent reduction: The price for noise

Tenants living in a construction zone do not receive the contractually agreed-upon quality of living. Therefore, when renovations are being carried out with other tenants, they are entitled to a rent reduction for the duration of the disruption. The amount directs according to intensity :

• Minor disruption (painting work in the stairwell): approx. 5–10%.
• Moderate disruption (scaffolding, facade work): approx. 10–20%.
• Severe impairment (kitchen/bathroom unusable, noise): approx. 20–50%.

When renovating with tenants, proactively approach them. Offer a fair, across-the-board reduction. This prevents each tenant from individually contacting the tenants' association. Factor these reduced rental incomes into your budget for renovations with tenants . They are not "losses," but rather investments in peace and harmony.

The subsequent rent increase: Create transparency

The most sensitive issue when renovating with tenants is the fear of "luxury renovations" and massively increasing rents. You are allowed to raise the rent after the work is completed, but only to the extent that the investment increased the property's value .

• Maintenance (upkeep): Must not be added to the rent.
• Increased value (comfort): May be passed on to the rent via a pass-through rate.

When renovating with tenants, the distinction is often difficult to make (e.g., old windows vs. new insulated windows = 40–60% increase in value). Communicate an estimate of the future rent before construction begins. If tenants know that the apartment will only be 100 francs more expensive after the renovation , but heating costs will decrease by 50 francs, acceptance will increase.

Hardship cases and protection against dismissal

Despite the best planning, renovating with tenants present can be unreasonable for some residents (e.g., the very elderly, the sick, families with newborns). In such hardship cases, insisting on one's legal rights is pointless. Seek individual solutions (e.g., postponing the work in that apartment, temporary alternative accommodation). Furthermore, note: A termination of tenancy issued solely to circumvent renovations with tenants and then re-let the apartment at a higher price can be challenged as abusive. The Federal Court recently upheld the hurdles for terminations of tenancy without tenants present, but also strengthened the protection of existing tenants. Therefore , renovating with tenants present is often legally more secure than attempting to evict them.

Conclusion

Is renovating with tenants stressful? Yes. Is it impossible? No. Renovating while the property is occupied is a balancing act between technical necessity and consideration for the tenants. The key lies in the planning. Those who organize the logistics efficiently, provide fair compensation, and communicate openly can increase the value of their property without losing the residents.

The goal when renovating with tenants should be a win-win situation: you maintain the value of your property, and the tenants benefit from increased living comfort, often with lower utility costs. When renovating with tenants, don't treat them as a nuisance, but rather as customers who will remain in the store during the renovation.

If you are looking for support with communication or calculating rent adjustments, Loft offers professional tools and templates for this purpose.

Glossary

• Renovating with tenants: Carrying out construction work in a rented property without terminating the tenancy beforehand.
• Obligation to tolerate: The tenant's legal obligation (according to the Swiss Code of Obligations) to permit necessary maintenance work and reasonable renovations. Central Expression at the Renovating with tenants .
• Rent reduction: The tenant's right to a reduction in rent during the construction phase to compensate for the reduced use value.
• Pass-through rate: The percentage to which value-enhancing investment costs may be added to the annual rent.
• Value-enhancing investment: Measures that increase comfort (e.g., better insulation, modern kitchen). Only this portion of the costs may be passed on to tenants as part of the rent after renovations .