TENANCY LAW
Rent Increase and Abusive Rent
General rules: A rent is considered abusive if it allows the landlord to obtain an excessive return from the property or if it lacks proper justification. Conversely, a rent is generally not regarded as abusive if it reflects the average rents in the area or is justified by increased costs or additional services provided by the landlord, among other lawful reasons.
Swiss tenancy law allows landlords to increase the rent during the term of a lease under certain conditions, for example, when the official reference mortgage interest rate rises or when the building’s operating costs increase.
A rent increase may take effect only on the next contractual termination date. The landlord must notify the tenant of the increase and its reasons at least ten days before the start of the notice period for termination, using the official cantonal form.
Options for the tenant:
Tenants may challenge the rent as unfair before the conciliation authority.
They can contest the initial rent within 30 days of taking possession if they were compelled to accept the lease due to hardship or market conditions, or if the new rent is significantly higher (i.e. at least 10%) than the previous one.
During the lease, tenants may request a rent reduction if there has been a substantial decrease in the landlord’s costs or if the return derived by the landlord from the leased property has become excessive.
Tenants may also contest rent increases or other unilateral changes made by the landlord within 30
days of receiving notice.
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