Comment by michpoch
2 years ago
There's a really nice solution that works well in Switzerland - you either pay tax from the actual rent or a tax on a virtual rent, if the property stays unoccupied.
Vacant properties are around 1% here.
2 years ago
There's a really nice solution that works well in Switzerland - you either pay tax from the actual rent or a tax on a virtual rent, if the property stays unoccupied.
Vacant properties are around 1% here.
1% is insanely dysfunctionaly low. It doesn’t allow for units to stay vacant between tenants for repairs and cleaning. At 1% the unit is vacant for 3 days every year on average. That’s not enough time for basic things to be done and indicates an incredibly tight rental market
> It doesn’t allow for units to stay vacant between tenants for repairs and cleaning. Cleaning is done by the previous tenant, or usually by a company the hire. Repairs are done on an on-going basis.
Switzerland also has an imputed rent tax for owner-occupiers and a majority are renters. It’s an unusual market.
1% vacancy rate is unequivocally bad. It means the rental market is far too tight and proper repairs are not being done.
> It means the rental market is far too tight and proper repairs are not being done. Why wouldn't they be done? What repairs are we talking about?
There literally isn't time for it. 1% vacancy leaves less than 4 days to turn a unit over when someone leaves. That's not enough time to repair units.
Well played. How do they decide if a property is rentable?
Why would it matter? If you keep paying the tax it'll be a good motivation to make it rentable or sell it to someone who can do it.