Rent increase: should I accept?
Rent increase: should I accept?
"I've been "informed" by the new owner of my building of a large rent increase and the threat of termination of my lease. My rent, which is very low, has not been increased since 2000. The new owner is now rushing to increase rents drastically, which is understandable. Retired since 1991, I firmly want to stay in my flat for a few more years. I accept a "reasonable" rent increase, but not a doubling of the rent! What can I do?"
Charles, Geneva
Articles 269 et seq. of the Swiss Code of Obligations (CO) provide protection against unfair rents in residential leases. These provisions are supplemented by the Ordinance on Leases of Residential and Commercial Premises (OBLF).
Under art. 269d of the Swiss Code of Obligations, notice of a rent increase must reach the tenant at least ten days before the start of the notice period. Furthermore, on pain of nullity, it must be notified on an official form, the reasons for the increase must be given and the increase must not be accompanied by a threat of termination. If your new landlord does in fact threaten to terminate the lease, the rent increase will be null and void and will have no legal effect.
The criteria for determining whether a rent is unfair are numerous and relatively complex. In principle, in the event of an objection to a rent increase, the judge will examine whether the rent has become unreasonable using the "relative" method, i.e. by examining whether the increase is justified in relation to the last rent set. However, in exceptional cases, where there has been a change of ownership, the case law allows the landlord to use the "absolute" method of setting the rent, i.e. by using criteria such as the return on the rented property or the limits of the usual rents in the locality or neighbourhood.
If you feel that the rent increase is unfair, you can contest it before the conciliation authority within 30 days of receiving notification of the increase. In Geneva, the conciliation board for leases and rents has jurisdiction. In principle, this procedure is free of charge.
