Our client, a large multinational situated in the Riviera region of Lake Geneva, Switzerland, had a major problem relating to the departure of their transferees who were being relocated abroad for professional reasons.
The main problem was that the company's employees would typically reside in high standard housing, where the lease usually has a one year cancellation period. Such leases are renewed year-on-year, with a very limited possibility to cancel.
Our corporate client, who was in charge of paying the rent following the departure of these transferees, found themselves with an immense amount to pay for the duration until the apartments could be returned to the landlords.
Our role was to work on behalf of our corporate client to find tenants that could take over the lease as soon as possible. This wasn't always successful, considering that there were various factors to take into account: the high monthly rent, a sub-optimal location of the apartment, or poor rental terms were typical issues making it hard to re-let the properties.
At this time, in the nearby city of Geneva we were helping other clients to negotiate what's called a "diplomatic clause" – or as it's known in the jargon of the employees of multinational companies, a "release clause".
These release clauses allow leaseholders to cancel the lease more frequently, several times per year. Unfortunately, in Lake Geneva's Riviera region this clause was barely known to the rental property agencies and to private landlords.
Our local Packimpex team worked extremely hard to make the ‘release clause' known in the Riviera region, asking rental agents and landlords in the region to accept the integration of this clause into their rental contracts.
We're happy to say, their efforts paid off and the clause was subsequently included in the rental agreements afterwards. Any new Packimpex transferees would from now on be able to cancel their lease with much more ease.
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