When you cannot sell: understanding the situation
Before exploring how to make money off a property you cannot sell, it is worth asking a harder question: can you really not sell it, or is it simply not selling at the price you want? In Switzerland, almost every property can sell — the question is usually at what price. If the property has been on the market for months without interest, the asking price is very likely too high. Reducing it may be the simplest and most profitable path forward.
However, there are genuine situations where selling is not feasible or not advisable: the market in your area is extremely weak, the property has legal encumbrances that block a sale, you are in a negative equity situation, or selling now would trigger a punitive short-term property gains tax. In these cases, the strategies below can help you make money off a property you cannot sell — or at least minimise the financial burden while you wait for conditions to change.
Rent the property out
Long-term rental
The most reliable way to make money off a property you cannot sell is to rent it out on a standard lease. Long-term rental provides predictable monthly income that can cover your mortgage payments, maintenance, and running costs — and potentially generate a net return on top.
In Switzerland, rental yields vary by region and property type but typically range from 2% to 4% gross for residential property. After deducting mortgage interest, maintenance, insurance, and management costs, the net yield is lower — but even a modest positive cash flow is better than an empty property that only costs you money.
Keep in mind that rental income is taxable, and a rented property no longer qualifies for the imputed rental value deduction on your tax return — instead, you declare the actual rent received. Mortgage interest and maintenance costs remain deductible against the rental income.
Short-term and furnished rental
If the property is in a tourist area, near a business hub, or in a city with demand for temporary housing, short-term or furnished rental can generate higher per-night income than a standard lease. Platforms like Airbnb, Booking.com, and specialised corporate housing providers have made this easier to manage.
Be aware that many Swiss municipalities have introduced regulations on short-term rentals — some require permits, others limit the number of days per year, and a few have banned them in certain zones. Check your local rules before listing. Also check your condominium regulations if applicable, as many explicitly restrict or prohibit short-term letting.
Renovate or reposition the property
If the reason you cannot sell is a specific, fixable issue — a poor energy rating, an outdated interior, an impractical layout — investing in a targeted renovation can transform an unsellable property into a desirable one. This is one of the most effective ways to make money off a property you cannot sell, because the cost of renovation is often far less than the value it adds.
Focus on the improvements with the highest return: energy efficiency upgrades (insulation, modern heating), kitchen and bathroom renovations, and cosmetic refreshes that change the first impression. In Switzerland, energy-related renovations are often eligible for cantonal subsidies and are tax-deductible, which improves the financial equation further.
Wait for the market
If the property market in your area is cyclically weak, patience may be the best strategy. Swiss property prices have shown long-term upward trends in most regions, driven by population growth, limited land supply, and a stable economy. A property that is difficult to sell today may find a ready market in one to three years.
While you wait, renting the property covers your costs and avoids the financial drain of an empty asset. If you are approaching a property gains tax threshold — where holding for a few more months or years significantly reduces the tax rate — this is an additional reason to delay.
Explore partial sale or equity release
In some cases, it may be possible to release capital from a property without selling it outright. Refinancing at a higher loan-to-value ratio frees up cash, though Swiss banks typically cap residential mortgages at 80% of the property value and require you to meet affordability criteria.
Partial sales — selling a share of the property to an investor while retaining the rest — are uncommon in Switzerland for residential property but do exist in certain structures. These are complex transactions that require legal and tax advice.
Reassess whether the property truly cannot sell
It is worth returning to the fundamental question: is the property genuinely unsellable, or is it the asking price that is wrong? Many owners who believe they cannot sell their property have simply not yet accepted the market's assessment of its value. A price reduction of 10–15% — while painful — may produce a sale that nets you more than years of carrying costs on an empty or underperforming property.
If you have not yet tested the market with a realistic price, do so before committing to a long-term holding strategy. The cost of holding a property — mortgage interest, maintenance, taxes, insurance, opportunity cost on the equity — adds up quickly and can exceed the perceived loss from selling at a lower price.
Key takeaways on making money off a property you cannot sell
If you cannot sell a property in Switzerland — or cannot sell it at the price you want — the most effective options are renting it out to cover costs, renovating to address the reasons it is not selling, or reassessing the asking price with fresh objectivity. In most cases, the property can sell — the question is whether you are willing to meet the market where it is. If not, generating income through rental is the most practical way to make money off a property you cannot sell while preserving the option to sell later under better conditions.
