Rent increases: the management company must meet certain deadlines

Rent increases: the management company must meet certain deadlines

"On 4 October we received a rent increase for 1 December 2006. We are not contesting the increase. However, shouldn't the management give us at least 3 months' notice, i.e. we should have received the notice of change on 31 August 2006 for an increase on 1 December 2006?

Claudine, Geneva

Under article 269d of the Swiss Code of Obligations (CO), the landlord may increase the rent for the next notice period at any time. The notice of rent increase, stating the reasons, must be sent to the tenant at least ten days before the start of the notice period, using a form approved by the canton. These rules apply to leases of indefinite duration.

There are two types of rent increase: one where the landlord alone decides on the rent increase, known as a unilateral rent increase; and one where the parties agree on a so-called consensual rent increase, which will often take the form of a new contract.

Three conditions must be met in order for a rent increase to be valid: the increase must be notified using the official form; the reasons for the increase must be given and sufficiently explained so that the tenant can decide whether or not to contest it; and the rent increase must not be accompanied by a termination or threat of termination. In addition, the increase form must indicate the date by which the rent increase is notified.

A rent increase may only be notified for the expiry of the contract. In addition, the official form must be notified and received by the tenant at least ten days before the start of the period for terminating the lease. This period begins the day after the tenant receives the notice of increase. This ten-day period is a cooling-off period that allows the tenant to terminate the contract in good time if he does not wish to accept the increase.

So if you have three months in which to terminate your lease, you should have received the increase form ten days before the start of those three months, i.e. on 21 August.

It should also be noted that, under article 270b of the Swiss Code of Obligations, the tenant may contest the rent increase within 30 days of receiving the notification form. The objection must be made in writing to the conciliation authority in the place where the property is located. If you do not apply to the conciliation authority within this period, the landlord may assume that you accept the increase.