Is a verbal rental agreement valid?

The handshake as a contract: Analysis and facts

The legal basis: Why is an oral tenancy agreement valid?

According to Article 11 of the Swiss Code of Obligations (CO), contracts only require a specific form to be valid if the law expressly prescribes it. No such requirement exists for the conclusion of a lease agreement. Therefore, an oral lease agreement is valid as soon as both parties have agreed on the essential points.

These essential Points are :

• The rental property: Which apartment or room is being rented?
• The rent: How much does it cost per month?
• The parties' intention: Both want to enter into a tenancy agreement (provision in exchange for payment).

If these three points are clarified by handshake or verbal agreement, the oral tenancy agreement is valid . It doesn't matter whether witnesses were present (although that would be helpful). Legally speaking, you are no worse off with an oral agreement than with a written one. The law protects the tenant regardless of the form. The fact that an oral tenancy agreement is valid protects you from being evicted immediately simply because no written document exists.

The problem with the burden of proof

Theoretically, a verbal lease agreement is valid. In practice, the burden of proof is a problem. If a dispute arises, the burden of proof lies with whoever makes a claim. Did you agree that utilities were included? The landlord now claims you have to pay extra for heating. Since the verbal lease agreement is valid , but no details are in writing, it's a case of one person's word against another's.

Here, the legal text or local custom often applies. Interestingly, this is often advantageous for tenants. For example, consider utilities: If the contract (even a verbal one) doesn't explicitly state that utilities must be paid separately (as an advance payment or a flat rate), they are considered included in the rent. The fact that a verbal tenancy agreement is valid works in your favor, as the landlord would have to prove a separate agreement – which is nearly impossible without a written contract.

Termination and deadlines

Many tenants fear that just because a verbal lease agreement is valid, it can also be terminated verbally from one day to the next. This is incorrect. Even if the agreement was made informally, strict rules apply to its termination:

• Landlords: Must use the official form, even if "only" a verbal tenancy agreement is valid. A verbal agreement Termination by the landlord is void .
• Tenant : Must be in writing quit .

Regarding notice periods: Since specific deadlines are usually not agreed upon in a verbal contract (who discusses legal clauses over a handshake?), the statutory notice periods apply. This also demonstrates that a verbal tenancy agreement can be valid and secure: You have a minimum notice period of 3 months to a locally customary termination date.

Is an oral tenancy agreement valid – even for shared apartments?

Verbal agreements are particularly common in shared apartments or sublets. "Just move in, give me 500 francs a month." Even in this situation, the verbal tenancy agreement is legally valid . This means the main tenant can't simply evict the subtenant overnight. Because the verbal agreement is valid, the subtenant enjoys full protection against eviction. Problems arise with damages or the security deposit. If no security deposit was discussed, then you don't have to pay one. The validity of a verbal tenancy agreement is based on the law, not the landlord's wishes.

The pitfall of the "small maintenance"

Written leases often specify the maximum amount tenants are responsible for paying for minor repairs (often up to CHF 150). If only a verbal lease is valid , this limit is often missing. In such cases, "local custom" applies. This can lead to disputes. Nevertheless, the verbal lease remains valid and protects you from having to pay for major repairs (e.g., a broken refrigerator), as this is legally the landlord's responsibility.

When does it become dangerous?

The fact that an oral tenancy agreement is valid becomes a risk when it comes to specific promises. For example, the landlord verbally promises: "You may use the apartment for 10 years" or "You may keep a dog." After a change of ownership or a dispute, no one wants to acknowledge these promises. Although the oral tenancy agreement remains valid, such specific side agreements are difficult to prove in court. Unfortunately, the fact that an oral tenancy agreement is valid does not protect you from losing these privileges if the landlord disputes them.

Summary of advantages and disadvantages

Advantages:

• Speed: Immediate move-in is possible, as a verbal rental agreement is validly concluded immediately .
• Legal protection: The often tenant-friendly standard rules of the Swiss Code of Obligations (OR) apply (e.g., no additional payment of ancillary costs without an agreement).
• Flexibility: Uncomplicated for short-term sublets.

Disadvantages :

• Lack of proof: Promises are difficult to substantiate, even if the oral lease agreement is valid.
• Uncertainty: Unclear termination dates or laundry room rules.
• No indexation: Rent adjustments to the reference interest rate are more complicated to implement.

Conclusion

The question "Is a verbal rental agreement valid ?" can be answered with a clear yes. Swiss law equates a handshake agreement with a written contract upon conclusion. You have protection against eviction, the right to have defects remedied, and legal certainty according to the Swiss Code of Obligations.

Nevertheless, a purely verbal agreement is risky. The fact that a verbal rental agreement is legally valid offers little help if you need to prove the details. Our recommendation: Insist on at least a brief written confirmation via email or WhatsApp, stating the rent, additional costs, and start date of the tenancy. This serves as evidence. Anyone who wants peace of mind in the long run should put the verbal agreement in writing afterward. Just because a verbal rental agreement is legally valid doesn't mean it's stress-free.

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Glossary

• Freedom of form: The legal principle that contracts (such as a lease agreement) do not require a specific form (e.g., written form) to be valid. This means is also a oral Rental agreement valid .
• Swiss Code of Obligations (OR): The legal code that defines the rules for tenancy agreements in Switzerland and applies unless otherwise agreed in writing.
• Burden of proof: The obligation of one party to prove a claim in court. This is the biggest disadvantage, even though an oral lease agreement is valid.
• Local custom: Local customs and standards (e.g., termination dates) that are applied when nothing is stipulated in the contract.
• Implied action: Behavior that suggests an intention (e.g., handing over keys and paying rent), which automatically results in a valid oral lease agreement .