The Swiss Federal Council aims to curb rising rents with short-term measures. On Wednesday, it proposed a four-point package of ordinances for consultation.
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Under these proposals, landlords won’t be able to pass on general cost increases to tenants indiscriminately. They’ll need to provide evidence of the actual additional costs incurred. This move is expected to reduce claims for increases, offering some relief to tenants. It also aligns with the current case law of the Federal Supreme Court, which deems flat rates inadmissible.
Increased transparency
Moreover, the Council plans to enhance transparency by updating the initial rent notification form with the latest reference interest rate and inflation figures. This will help tenants better understand rent levels and contest them when necessary.
In contesting rent hikes, tenants can now present absolute cost criteria like translated income or local customs. Corresponding forms will be labelled accordingly, increasing transparency in current tenancies.
To offset inflation in equity capital, rent increases will be capped at 28%, rather than 40% of the national consumer price index increase. While providing some relief to tenants, this adjustment won’t have a significant impact. For instance, for a CHF2,000 ($2,213) rent with a 2% inflation rate, relief would amount to CHF4.80 per month or CHF57.60 annually.
Parliament also approved changes to the notification process for staggered rent increases. Instead of an official form, written notification will suffice.
The consultation on these proposals will run until July 11. The Federal Council anticipates potential rent hikes of up to 15% by 2026, depending on interest rates and inflation. These measures aim to reduce rents and enhance transparency in the rental market without unduly interfering in contractual relationships or hindering housing market investments.
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