Securing an apartment despite a debt collection order – 5 tips
04.07.2023, Anaïs Frisano
Looking for an apartment if you are subject to a debt collection order can soon become difficult. As every landlord wants to ensure that rent will be paid promptly, you will have no alternative but to submit your extract from the debt collection register when applying for an apartment. Here are five tips for successfully securing an apartment despite being subject to a debt collection order.
Find an apartment with debt collection – this is how it works!
Have the entry deleted
You can have paid debt collection orders deleted. If you have settled your outstanding debts, the entry will not be automatically deleted, however. Early deletion can only be undertaken by the creditor. Once you have settled all the invoices in full, you can contact the creditor and ask them to explicitly confirm in writing that they are withdrawing the debt collection order. Please note that some companies may charge a fee for this service. But the administrative cost can definitely be worthwhile.
* In the context of debt collection, a creditor is someone to whom money is owed. Imagine you have lent 50 francs to a friend and he does not give it back to you. In this case, you would be the creditor. If your friend does not give you the money back, you could start a debt collection so that the debt collection office helps you to get your money back.
Find someone to act as your guarantor
A declaration of guarantee can significantly improve your chances of securing an apartment despite a debt collection order! In this case, a third party – often a family member or close friend – acts as guarantor for your rental payments. This gives the landlord additional security and can help obtain approval for a rental apartment despite having an entry in the debt collection register.
Wait for the order to expire
Probably the easiest way is to wait for your debt collection order to expire. In Switzerland, debt collection orders appear in your extract from the debt collection register for a period of five years. At the end of this period, they are only visible to the authorities. So if you do not have an urgent need to look for an apartment and are able to wait a while, this could be a good solution.
Obtain references
If none of the above options are possible, a reference from a previous landlord might be helpful. Such a reference confirms that you have always paid your rent on time. You can also attach a copy of your employment contract to your application, including a letter from your employer. This will provide further evidence of your financial stability.
Have an open conversation with the landlord
An open conversation with the landlord can often help. Put your cards on the table and explain how the debt collection order came about. A debt collection order does not necessarily mean that you are an unreliable tenant. Ultimately, there are genuine people out there and with a little understanding, you can obtain approval despite a debt collection order.
Transparency when applying for an apartment
Even if it is harder to secure a long-awaited rental agreement if you are subject to a debt collection order, transparency is extremely important when applying for an apartment. Both misrepresenting the facts and withholding information can have legal consequences. In addition, they can also permanently damage the landlord’s trust... Openness and honesty are key to gaining the landlord’s trust and establishing a successful relationship with them. Even if you are subject to a debt collection order, it is better to openly discuss this with the landlord and present possible solutions.
Where can I get a current extract from the debt collection register?
You can simply request a full and current extract from the debt collection register from the relevant debt collection office, either in person or online. This usually takes two to five working days.
It is important that you apply for your extract from the right debt collection office in Switzerland. Your residential address will determine this. The office closest to your registered residential address is responsible.
Tip: you can also conveniently order your extract from the debt collection register via Flatfox. You will receive the digital statement within 48 hours by mail. Then simply save it in your Flatfox account to use it several times!
How long is the debt collection order extract valid when looking for an apartment?
An extract from the debt collection register for housing purposes is usually valid for three months from date of issue. At the end of three months, the extract will generally no longer be deemed to be current, and can no longer be used to apply for an apartment.
It is almost impossible to secure an apartment without a debt collection register extract. It is therefore advisable to request your extract shortly before you start to look for an apartment and to have an updated version available in plenty of time.
Professional assistance with securing an apartment when subject to a debt collection order
If you are struggling to pay off your debts and are subject to several debt collection orders, professional assistance from a debt counseling agency can be an important step. They can help you settle your debts and negotiate with your creditors on your behalf. Here are some useful links for making initial contact:
Conclusion: successfully securing an apartment despite a debt collection order
Securing an apartment if you have an entry in the debt collection register can be a challenge, but is not impossible. Patience, open dialog with your landlord and a sense of responsibility can improve your chances of finding a suitable apartment.
