Renting out a parking space or garage

Parking spaces: the different types available

Before we share the most important tips for renting out parking spaces, here is an overview of the different types of parking spaces in Switzerland:

• An outdoor parking space is a marked space outside without protection from the weather.
   
• A carport provides covered but open-sided protection and space for one or more vehicles.
   
• Garages are lockable, covered parking spaces with solid walls that offer protection from weather and theft and are often also used for storage.
   
• An underground garage is located below ground level and is usually shared by multiple parties. An underground parking space provides room for one car but may, if permitted by the property management, also be used as ancillary storage space.
   
• Special types of parking spaces may exist depending on the region, in addition to standard parking spaces. These may accommodate motorhomes, bicycles or motorcycles, for example.

Before renting out a parking space or garage – what you need to know

Should the parking space be rented out separately or together with an apartment?

Would you like to rent out the parking space together with an apartment or on its own? This question has a direct impact on the notice period. The key factor is whether the parking space or garage has a separate rental agreement or forms part of the lease agreement for the apartment or commercial premises.

If the latter applies, the parking space/garage and the apartment are considered a single unit with a joint notice period, usually three months. In this case, it is not possible to terminate the parking space independently. If the garage or parking space is rented out separately, either party may terminate the agreement up to two weeks before the end of a month.

What must be considered when subletting a parking space?

• Are you paying rent for a parking space or garage that you do not use? For example, because the space is part of your apartment rental but you do not own a car? In this case, you may be able to sublet the parking space under certain conditions.
   
• First, you must inform your property management of your intention. Their consent is required.
   
• The property management may only prohibit subletting under very specific circumstances, for example if it is deemed unreasonable.
   
• If the property management does not agree to the subletting, you may have the option to terminate the parking space on an extraordinary basis. However, this is only possible if the garage or parking space is covered by a separate rental agreement.
   
• You are free to set the rent for the sublease. The only condition is that you may not make a profit — in other words, the rent charged must not exceed the amount you pay for the garage or parking space yourself.
   
• In general, it is advisable to draw up a written sublease agreement in order to prevent potential misunderstandings between the parties involved. If you are looking for a basic template for a parking space rental agreement, the following section explains which points should be included in a contract.

Is a rental agreement for a parking space mandatory?

Legally, there is no obligation to draw up a written rental agreement in this specific case. If you trust the tenant, a verbal agreement is sufficient. However, as mentioned earlier, a rental agreement for a parking space is advisable in order to avoid potential misunderstandings. There are no formal requirements for a parking space rental agreement. In other words, there is no single standard template.

If you decide to put a written agreement in place, we recommend including the following points in a rental agreement for a garage or parking space:

• Full names of both parties
• Description of the rental object
• Rental term
• Start date of the tenancy
• Notice period
• Amount of rent
• Any additional costs
• Amount of the deposit (if applicable)
• Number of keys handed over (if applicable)
• Brief description of what may be stored or done in the rental object
• Tenant’s obligations regarding maintenance and care
• Liability and arrangements in the event of damage

May I request a deposit for renting out a parking space?

A rental deposit is not mandatory when renting out a garage or parking space. However, if you wish to request a deposit, it must be held in a blocked account.

What may be stored in a garage or on a rented parking space?

The purpose of renting out a parking space is to park a vehicle. Strictly speaking, only the vehicle may be parked there. In practice, however, it is generally assumed that accessories related to the vehicle may also be stored in or on the rental object. Such items may include a child seat, a bicycle or tyres.

If items unrelated to the intended purpose are to be stored in the garage, it is advisable to specify this in the rental agreement.

For fire safety reasons, there is generally a storage ban in garages regarding highly flammable liquids or wood (such as furniture). In shared underground garages with multiple users, consideration must also be given to other parties when storing items.

Who pays the operating costs of the garage or parking space?

The operating costs of a garage or parking space are to be borne by the tenant, as they form part of the additional costs.

Who is responsible for maintaining the garage or parking space?

If you own and rent out the garage or parking space, you are responsible for its maintenance. This particularly applies to repairs that cost more than CHF 100 or require professional workmanship. If you intend to carry out repairs or renovations, you must inform the tenant in advance.

The tenant is obliged to notify you of necessary maintenance or defects. Failure to do so may result in the tenant being held liable for any resulting damage.

Is renting out a parking space subject to VAT?

It is a common misconception that parking spaces and garages are exempt from VAT. In fact, the opposite is true: according to the VAT Act (Art. 21 para. 2 no. 21 VAT Act), renting out parking spaces and garages is explicitly subject to VAT.

However, this only applies if you are generally subject to VAT — in other words, if you rent out as a business and generate annual turnover exceeding CHF 100,000.

Who is liable for damage to parking spaces or garages?

If the tenant causes damage to a rented garage or parking space, they are responsible for covering the costs — including damage resulting from negligent or improper use.

Normal wear and tear as well as maintenance of the rental object under normal use fall within your area of responsibility.