Challenging a rent increase
The principle of an abusive rent
Art. 269 CO sets out the principle: rents are abusive when they allow the landlord to obtain an excessive return on the leased property, or result from a manifestly excessive purchase price. It is on this basis that a tenant can challenge a rent increase.
The form of the increase notice
Any rent increase must be notified using an official form approved by the canton, stating the grounds for the increase (art. 269d CO), at least ten days before the start of the notice period and effective on the next possible termination date. A notice that does not comply with this form is null and void.
Common grounds for increase
Rent increases are most often justified by adjustment to the reference mortgage rate, an increase in ancillary costs or maintenance costs, additional services provided by the landlord, or, for index-linked leases, changes in the Swiss consumer price index. An increase can also be justified by adjustment to the usual rents in the neighbourhood.
Challenging the increase
A tenant who considers the increase unjustified can approach the conciliation authority within 30 days of receiving the increase notice (art. 270b CO). It is in principle up to the landlord to show that the increase is based on one of the grounds recognised by law.
Frequently asked questions
Can my landlord raise my rent as they please?
No, any increase must be based on a ground recognised by law (adjustment to the reference rate, higher costs, additional services, etc.) and be notified in the legally required form.
What document should I receive when my rent is increased?
The official form approved by the canton, stating the new rent and the grounds for the increase (art. 269d CO). Without this document, the increase is null and void.
Within what time limit can I challenge a rent increase?
Within 30 days of receiving the increase notice, by approaching the competent conciliation authority (art. 270b CO).
Does a drop in the reference mortgage rate entitle me to a rent reduction?
If your rent was set or increased taking into account a higher reference mortgage rate, a drop in that rate can justify a request for a rent reduction to your landlord, which can be brought before the conciliation authority if refused.