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Rents in Switzerland are high. What should I do if there is another rent increase? In this article, we explain the legal framework for rent increases, how they can be contested, and how AXA-ARAG can support you with its personal legal protection insurance.
If the media report that rents may soon go up again or that your landlord has renovation plans, then you too may run the risk of having to pay higher rent soon. A scenario that many tenants in Switzerland are familiar with and that often raises questions and uncertainties. How much can the rent go up by? Is the increase justified? And what are your rights as a tenant?
Swiss tenancy law stipulates that rent increases must be reasonable and justified by verifiable factors. These include, for example, adjustments to the mortgage reference rate, increased operating costs or maintenance measures, and investments in the property that significantly increase the residential value. Rent increases must be communicated appropriately to the tenants on an official form, and the latter have the right to object to rent increases within a specified period.
Personal legal protection insurance for tenants can be an important support. It helps cover the costs of legal disputes and provides access to professional legal advice. For you, this can be a decisive factor in effectively defending your rights and yourself against unjustified rent increases.
Notice: Notice of a rent increase must be given in writing on the relevant official form. Landlords must justify the increase. This includes, for example, evidence of increased operating costs, documentation of maintenance measures carried out, or adjustment to the changed reference rate.
Notice periods: Notice of a rent increase must be given to you as the tenant at least ten days before the start of the notice period. This period is crucial, as it gives you the opportunity to review the increase and, if necessary, contest it or consider other legal action.
But it’s not just deadlines that are an important point to bear in mind when a rent increase comes your way. Tenants often ask themselves a whole host of other questions, such as:
If you do not agree to a rent increase, you have the right to object. In Switzerland, you must contest the increase with the responsible arbitration office within 30 days of receiving the rent increase. It is advisable to find out well in advance and, if necessary, seek legal advice so that you can realistically assess your chances of success.
In Switzerland, rent can be increased under certain conditions. These include a change in the mortgage reference rate, increased operating costs, value-enhancing investments in the property or an increase in the country’s consumer price index. A rent increase must always be justified and formally notified to the tenant.
The reference interest rate is an interest rate set by the Federal Housing Office that reflects the movement of mortgage interest rates. If the reference interest rate falls, you as the tenant are generally entitled to a rent reduction, provided that no other factual reasons, such as increased operating costs or renovations, justify an increase. Conversely, landlords can request a rent increase if the reference rate increases under certain conditions.
If you have taken out legal protection insurance with AXA, you can benefit from professional legal advice. AXA helps tenants in various cities not only to check the legality of rent increases, but also to ensure that the calculations are transparent compared to the original rent. AXA ensures that you are well informed and competently represented to reach a fair and equitable solution.
After receiving notice of a rent increase, you have 30 days to respond. Use this time to carefully consider the reasons for the increase. Is something wrong? Does the increase seem unjustified or unverifiable to you? If so, you have the right to take action.
You can contest the increase with the responsible arbitration authority. The latter is there to mediate between you and the landlord so that both sides can present their points of view.
However, if no agreement can be reached, you have the option of taking the case to the court of first instance, where a binding judgment will be handed down. This is a procedure with binding formal requirements, for which a lawyer is essential. That’s why it’s important that you think carefully about whether you want to follow this path.
The maximum permissible rent increase depends on the reasons. If the reference rate is raised, the following currently applies: For every 0.25 percentage points, the rent may be increased by 3 percent. If the last adjustment to the reference rate was suspended, the full 6 percent may now be applied immediately.
General inflation can be passed on to tenants by up to 40 percent. Maintenance and cost increases are often calculated at a flat rate of 0.5 percent. The permissible frequency of a rent increase also depends on the reasons. For example, rent can always be adjusted if the reference interest rate changes. It is important for the necessary deadlines and corresponding formalities to be observed.
Nadine Graf is a theme manager and writes texts for AXA on topics related to insurance and beyond.
