Screening Tenants Before and After Signing the Lease

A frustrating situation familiar to many property owners: a new tenant moves in and from day one you find yourself chasing overdue payments. Temporary cash-flow problems are cited, personal issues are mentioned, and supposedly everything will soon be fine and the rent will be transferred “shortly”. So-called rental fraudsters move into flats (or hotel rooms) either without any intention of paying rent at all or without having the financial means to do so. Landlords are deceived about the tenant’s financial ability and willingness to pay already at the moment of signing the contract, which is why such cases fall under Art. 146 “Fraud” of the Swiss Criminal Code (StGB).

 

In contrast to these situations—where the tenant always intended to cause financial damage to the landlord for their own gain—a tenant who unexpectedly loses the ability to pay rent after signing the lease is not a rental fraudster, as no fraudulent intent existed. It is therefore essential to distinguish between ordinary debtors and actual offenders. By conducting background investigations centred on the tenant’s previous rental and payment behaviour, the Kurtz Detective Agency Zurich and Switzerland examines the facts on behalf of landlords and, if suspicions of rental fraud are confirmed, obtains court-admissible evidence: +41 44 5522 264.

Rental Nomads – A Special Form of Rental Fraud

While a rental fraudster does not necessarily have to be a repeat offender who systematically deprives landlords of rental income, so-called “rental nomads” are by definition chronic repeat offenders. As soon as their inability or unwillingness to pay rent in flat A is discovered, they secure a lease for flat B—which they also have no intention of paying for. Once their fraud is uncovered there, they move on to flat C, and so on. And because these moves usually take place in the middle of the night, the flats are often left in an appalling condition. The owner suffers not only from unpaid rent, but also from the costs of clearing out, deep-cleaning and often repairing or renovating the flat. To pursue this particularly troubling form of rental fraud and bring offenders before a court, our Swiss commercial investigators are frequently and successfully deployed. As rental nomads often disappear without leaving a forwarding address, the most decisive step in the majority of cases is locating their current residence—only then can claims be formally served.

 

Rental nomads are not necessarily socially disadvantaged families exploiting the goodwill of landlords or fleeing from consequences. They may just as well be the seemingly trustworthy, well-dressed banker whose outward wealth easily reassures landlords or hotel managers. Even financially capable people obtain services fraudulently when they never intend to pay for them. For example, an attractive couple may occupy luxury hotel suites but repeatedly leave without settling the full bill—using bounced cheques, false identities or stolen payment data—only to check into the next hotel shortly thereafter. Hollywood may portray this antisocial lifestyle as glamorous, but in reality, it is simple criminality at the expense of others—and therefore a matter for our private investigators in Zurich, Lausanne, Geneva and across Switzerland.

Investigation Methods of the Kurtz Detective Agency Switzerland

Both the rental fraudster and, for example, the newly separated tenant whose estranged spouse has suddenly cut off access to joint funds may insist to the landlord that they always intended to pay the rent. But the landlord can neither identify a fraudster simply by looking at them, nor can they recognise at first glance that another tenant is genuinely in an unexpected financial crisis. Our Zurich detective team, however, can establish a reliable profile of the tenant through background research—such as enquiries with previous landlords, other creditors, and former or current employers. With this information, it is easy to draw conclusions regarding the tenant’s integrity: if rent, utility bills and other payments have always been met on time in the past, the current arrears may indicate a sudden personal difficulty rather than fraud.

 

The results point in a different direction if our Swiss private investigators discover that previous landlords have been cheated, that the tenant is listed with negative entries at commercial information agencies, that debt-collection procedures have taken place in the past or are still ongoing, or that criminal proceedings for property damage or fraud have previously been initiated. Depending on the severity of these findings, it may be assumed that the tenant intentionally deceived the landlord in order to obtain accommodation without paying. With the court-admissible documentation compiled by our commercial investigators, rental nomads can be stopped through legal action and the flat can be lawfully vacated.

Difficult lease termination in Switzerland: Investigators recommend preventative tenant screening

Rental nomads are fully aware of the statutory deadlines that landlords must comply with. They often disappear only days before these deadlines expire, making legal or financial recourse temporarily impossible. According to Article 257d of the Swiss Code of Obligations (OR), landlords must first set a 30-day deadline for overdue rent to be paid. If the tenant ignores this deadline, a second notice with at least another 30-day deadline—ending at the end of a month—must be issued before termination is possible. In the worst-case scenario, a landlord may thus lose up to three months’ rent before being able to terminate the contract and order the tenant to vacate the property.

 

For all these reasons, our investigators for Bern, Grisons or Ticino strongly advise landlords to pre-screen tenants professionally and to keep several key points in mind:

 

• Always request photo identification from new tenants and check its authenticity (visual and tactile verification of security features, comparing photos with the actual people).
• Never hand over the keys before the deposit has been paid.
• Ask prospective tenants to provide proof of creditworthiness.
• Scrutinise information provided about rental history, employment and personal background. Many people have no hesitation in exploiting goodwill!

 

If the situation has already become critical, our Zurich corporate investigation agency will use every professional means available to recover overdue payments or to obtain the evidence required for court. Our goal is always to keep the landlord’s losses as low as possible. Particularly with tenants who actually have financial means, not only can outstanding rents and renovation costs be recovered, but investigative costs can also be claimed. Even with insolvent tenants, it is often possible to cover at least part, or in some cases even all, of the losses through the seizure of assets.

Hiring Our Swiss Private Investigation Agency

Are you a hotelier who has fallen victim to a rental fraudster? Are you dealing with rental nomads who have left your flat in a filthy and damaged state? Would you like to have your future tenant professionally screened to avoid unpleasant surprises? Then contact our investigative agency in Switzerland during business hours and let us advise you on the procedures and conditions for your specific case. You can reach us by e-mail at kontakt@kurtz-detektei-schweiz.ch, via our contact form, or by telephone at +41 44 5522 264.