Rental Fraud | Rogue Tenants in Switzerland

Major losses caused by tenants unwilling or unable to pay

An unfortunately frequent annoyance for any property owner: a new tenant moves in and from the very first moment, one has to chase payments. Temporary financial difficulties are just as often cited as personal problems, with the promise that the tenant will soon be liquid and pay the owed amount immediately. So-called rental fraudsters move into apartments (or even hotel rooms) although they either never intend to pay the rent for the spaces they occupy, or do not have the financial means to do so. The landlord is deceived about the tenant’s ability and willingness to pay already at the contract signing, which is why these cases also fall under Art. 146 “Fraud” of the Swiss Penal Code (StGB).

Unlike fraud cases in which there was an intention from the outset to cause financial damage to another for one’s own enrichment, a tenant who unexpectedly loses the ability to pay rent after signing the contract is not a rental fraudster, as there was simply no fraudulent intent. Accordingly, it is essential to distinguish between mere debtors and criminals. By conducting research into the tenant, focusing in particular on their previous payment and rental behaviour, Kurtz Investigations Zurich and Switzerland verify the situation on behalf of affected landlords and gather court-admissible evidence in confirmed cases of rental fraud: +41 44 5522 264.

Rogue Tenants, a Special Case of Rental Fraud

While a rental fraudster does not necessarily have to be a serial offender who constantly deprives landlords of their rent, so-called rogue tenants are, by definition, notorious repeat offenders: as soon as their inability or unwillingness to pay and their fraud in Apartment A is discovered, they arrange a lease for Apartment B, the rent of which they will, of course, also not pay. After the fraud in Apartment B is uncovered, they move to Apartment C, and so on. Because their departures often take place in rapid “hit-and-run” style, the apartments are frequently left in a dilapidated state. Consequently, the owner suffers not only the loss of unpaid rent but must also clear, deep-clean, and often even renovate the apartment. To pursue this particularly troubling form of rental fraud and bring offenders to justice, our corporate detectives in Switzerland are regularly deployed with success. As rogue tenants are usually unknown, locating their whereabouts is the most important step to success in most cases, as only then can claims be served.

Rogue tenants do not necessarily have to be socially disadvantaged families taking advantage of landlords’ goodwill or fleeing from apartment to apartment out of fear of penalties. It can just as well be an apparently trustworthy, well-dressed banker who, with his openly displayed wealth, initially presents no problem to a landlord or hotel management. Even affluent individuals can defraud by never intending from the outset to pay. For example, an attractive couple may check into the finest suites of luxury hotels, yet depart without paying in full (often using bad cheques, false identities, or stolen/falsified payment details), only to check into another hotel shortly afterwards. While Hollywood occasionally romanticises such antisocial lifestyles on screen, in reality it is simply crime at the expense of others – and thus cases for our private detectives in Zurich, Lausanne, Geneva, and across Switzerland.

Investigation Options by Kurtz Investigations Zurich and Switzerland

While both the rental fraudster and, for example, a newly separated tenant whose access to jointly earned funds has been blocked by their ex-partner, may assure the landlord that they always intended to pay the rent, only one of the two is guilty of fraud. However, the landlord cannot tell from appearances alone whether Person A is a fraudster, nor can they exclude it for Person B. Our Zurich detective team can, through background checks – for example with previous landlords, other creditors, or past and current employers – create a profile of the tenant. This information allows conclusions to be drawn regarding their reliability. If past rent payments and utility bills were always settled on time, the current defaulting tenant may indeed just be experiencing an unexpected financial shortfall.

Evidence points in a different direction, however, if our Swiss private detectives find that other landlords have already been defrauded, that the tenant has negative marks in one or more credit agencies, that debt collection procedures have been initiated against them in the past or present, or even criminal proceedings due to damaged apartments or fraud. Depending on the seriousness of the findings, it can be assumed that the tenant deliberately deceived the landlord to obtain the apartment and a roof over their head. With the court-admissible documentation our corporate investigators collect for their clients, rogue tenants can be legally restrained and the apartment lawfully evicted.

Difficult Termination of Tenancy in Switzerland: Swiss Investigators Recommend Pre-Tenant Checks

Rogue tenants are generally well aware of the statutory deadlines landlords must observe, and often disappear a few days before these deadlines, preventing financial or legal recourse in the meantime. Article 257d of the Swiss Code of Obligations (CO) stipulates that for residential and commercial premises, a 30-day grace period must first be granted for unpaid rent to be settled; if ignored, the landlord may only terminate with an additional minimum 30-day notice at the end of a month. In the worst case, landlords may lose up to three months’ rent before they can order the eviction of the rental fraudster.

For all these reasons, our detectives for Bern, Graubünden, and Ticino recommend checking tenants across Switzerland in advance or having them professionally vetted, while always keeping a few basic points in mind:

1. Request photographic ID from new tenants and verify authenticity (visual and tactile examination of security features, comparison of photos with the real persons).
2. Never grant access to the rental property until the deposit has been paid.
3. Ask prospective tenants to provide a creditworthiness certificate.
4. Critically question information on the tenant’s rental history, CV, and employment. Many people have no qualms about exploiting goodwill!

If the situation has already become precarious, our Zurich corporate detective agency can, of course, use all its resources to compel the tenant to pay or gather evidence for court. The aim is always to minimise the landlord’s loss. Even with otherwise solvent tenants, this can recover unpaid rent, cover renovation costs, and claim damages for any rental loss, as well as detective fees. For insolvent tenants, it is often still possible to cover part or all of the costs by seizing assets.

Engaging Our Swiss Private Detective Agency

Are you a hotelier who has fallen victim to a rental fraudster? Or are you dealing with rogue tenants who have trashed your apartment and left it in need of renovation? Do you want your future tenant professionally screened to avoid unpleasant surprises? Then contact our detective agency in Switzerland during business hours for advice on procedures and conditions in your case. You can reach us by email at kontakt@kurtz-detektei-schweiz.ch or via our contact form, and by telephone at: +41 44 5522 264.

Author: Maya Grünschloss, PhD

Kurtz Investigations Zürich and Switzerland

Max-Högger-Strasse 6

8048 Zürich

Tel.: +41 (0)44 5522 264

E-Mail: kontakt@kurtz-detektei-schweiz.ch

Web: https://www.kurtz-detektei-schweiz.ch/en

Google: https://g.page/kurtz-detektei-zuerich-schweiz

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