Rent reduction if renovation

Rent reduction if renovation

Under article 260 of the Swiss Code of Obligations, the lessor is only entitled to renovate or modify the leased property if the work can reasonably be imposed on the lessee and the lease has not been terminated. Renovation or alteration work may therefore only be undertaken during the term of the lease, although the lessor must take account of the lessee's interests, in particular by informing him in advance of the planned work, i.e. its nature, duration and foreseeable nuisance. If necessary, the tenant should be consulted to ensure that the work is as unobtrusive as possible.To determine what type of work should be tolerated by the tenant, the situation must be assessed objectively, on a case-by-case basis, taking into account various criteria such as the length of the lease that has already expired, the type and purpose of the lease, the extent and urgency of the work, the timing (e.g. holidays, illness or rest periods), the duration of the foreseeable disturbance, the usefulness of the renovations for the tenant and compliance with public law standards. As a matter of principle, the tenant may request a reduction in rent if a defect hinders or restricts the use of the rented property, particularly if it is impossible to use part of the property properly. Case law recognises that the opening of a building site in the building constitutes such a defect. Despite the precautions taken by the landlord, the inconvenience caused may be such that the rented property becomes defective. Here are a few examples taken from court decisions: a rent reduction of 10 % was granted for the renovation of the facades, the creation of a lift and the fitting out of the attic; a reduction of the same order was granted for discontinuous noises of varying intensity accompanied by the smell of paint; a reduction of 15% was granted for various works undertaken in the building causing nuisances such as noise and dust. These are common situations in the building sector, and the rent reductions that can be envisaged can obviously be higher in more serious cases, particularly if the tenants are deprived of part of their home because of the works.