What does this mean for business-apartment operators?
A forced wind-down in the residential share, declaration duty, no grandfathering — and the options that remain.
Anyone short-letting furnished apartments in Zürich must rethink. If the units sit in the protected residential share, the previous model is no longer permitted — and there is no grandfathering.
What changes for operators
The Federal Court has confirmed: furnished short-term letting (fixed term under a year, no main residence) no longer counts as housing in the residential share. For operators this means a forced wind-down back to long-term residential use.
- Use as a business apartment in the residential share requires notification and a building permit — even without structural conversion.
- Commercial short-term lets are not protected by grandfathering.
- Enforcement begins autumn 2026; breaches risk restoration orders and fines.
- Affected are units in residential, core and neighbourhood-conservation zones.
Your options
Three paths are open: convert the units to long-term living yourself (with the administration and vacancy risk that brings), sell — or let the apartments long-term to a residential provider who takes over operations.
For many, the third route is the simplest: Room Estate master-leases the apartments, pays a reliable, long-term rent and carries the vacancy risk. The now-impermissible business apartment becomes compliant long-term housing — with no break in income.
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