Housing co-operative and renovation costs

Housing co-operative and renovation costs

I have been a member and tenant of a housing cooperative for over thirty-five years, since the building was founded. I recently obtained authorisation to renovate my bathroom at the cooperative's expense, on condition that my rent increases by CHF 60 per month for 20 years, which corresponds to the total cost of the planned work of CHF 14,200. Is this legal?

F. Geneva

There are two distinct legal relationships between the member/tenant and the housing co-operative. The first is a cooperative company contract, the effects of which are described in articles 828 et seq. of the Code of Obligations (CO) governing the relationship between the person holding a share in the cooperative and the latter. The second is a lease agreement governing the relationship between the tenant and the cooperative.

The question of works and rent increases must therefore be analysed in the light of the legal provisions on lease contracts. Article 256 of the Swiss Code of Obligations states that the lessor is obliged to deliver the property in a condition suitable for the use for which it was leased and to maintain it in that condition. Article 269a of the Swiss Code of Obligations specifies that additional services provided by the lessor are a criterion for setting the rent.

A landlord who adds value to the object of the lease may increase the rent under certain conditions. For example, installing a lift or improving sound or heat insulation would constitute an increase in value. On the other hand, the renovation of fully depreciated elements does not constitute an increase in value, but is part of the landlord's maintenance obligations. As a result, such renovation does not give the landlord the right to increase the rent.

Be careful: the tenant does not have the right to demand a service that goes beyond what existed previously, for example asking for a bathtub to be installed when they previously only had a shower, or asking for a higher quality of materials than those that existed previously.

To determine whether an installation is depreciated, tables are used to estimate the lifespan of the various items in a home; they provide for a depreciation period of 30 years for a completely new bathroom. These tables, which are available on the internet, have no legal force, but they can guide the courts in their assessment of each individual case.

According to your explanations, it would appear that your bathroom has been fully depreciated and that its renovation is therefore no more than a maintenance project for which the landlord is legally responsible. Your co-operative should not therefore be entitled to impose a rent increase on you as a result of the planned renovation work, if it does not at the same time add value to your property.