A rent reduction in the face of building work?
A rent reduction in the face of building work?
"I've been living in a 5-room flat in Geneva for 4 years. I'm entitled to ask for a rent reduction, and if so, how much?
Aurélia, Geneva
According to art. 259a of the Swiss Code of Obligations (CO), the lessor may be obliged to reduce the rent if there are defects in the property for which the lessee is not responsible and which he is not obliged to remedy at his own expense, or if the lessee is prevented from using the property in accordance with the contract.
Article 259d of the Swiss Code of Obligations stipulates that if the defect hinders or restricts the use for which the property was leased, the tenant may demand a proportional reduction in the rent from the time the landlord became aware of the defect until it is rectified.
A defect occurs when the property does not have a quality promised by the lessor or on which the lessee could legitimately rely. In particular, immissions (dust, vibrations, noise) from a neighbouring building site may constitute a defect.
The reduction in rent must be proportionate to the defect. To determine this, a comparison must be made between the use of the leased property affected by the defect and its use in the absence of the defect. The judge has broad discretion in setting the amount of the rent reduction, taking into account all the circumstances and particularities of each case. In practice, rent reduction rates are often between 10 and 25%.
For example, in Geneva, the Court of Justice upheld an average rent reduction of 15% in the presence of a building site for the construction of four buildings close to the plaintiff's flat and causing dust, noise and trepidation. In an urban area, only a rent reduction of 10% was granted due to the construction of four buildings and an underground garage opposite a rented building, but in another case, a rent reduction of 25% was granted for a two-year building site located in a neighbouring building.
