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Planned Rent Increases – “You have to calculate four to five percent more rent” – Kassensturz Espresso

Planned Rent Increases – “You have to calculate four to five percent more rent” – Kassensturz Espresso

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In an interview, rent law expert Carmen Wettstein told how to defend yourself against arbitrary rent increases.

From June, many renters will likely have to tighten their belts. A recent survey of major landlords by the AWP news agency found that there are signs of rising rents across the board. Because it is very likely that the reference interest rate will go up on the 1st of June. This means landlords are also allowed to raise rents – and, according to the survey, most of them will. Carmen Wettsteinpresident of the Zurich Tenants Association, says when and how you can defend yourself against a rent increase.

Carmen Wettstein

President of the Zurich Tenants Association


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Carmen Wettstein is a lawyer in her own law firm and has chaired the Zurich Tenants Association since 2018.

Photo: © MV

“Espresso”: Mrs. Wettstein, when should tenants resist a rent increase?

Carmen Wettstein: One should always stand up for oneself if there was no rent reduction before, if the reference interest rate went down. In such cases, landlords do not have the right to increase the rent.

One must always defend oneself if there has been no rent reduction before, when the reference rate of interest falls.

However, in principle, landlords are allowed to increase the rent if the benchmark interest rate rises. When is this excess offensive?

It is regulated by law: if the reference interest rate is increased by up to a quarter, the net rent can be increased by three percent. Part of the inflation can also be transferred. Then there is a third component: the general increase in costs. This is controversial. Fixed rates are common here – for example, rent increases of a quarter of a percent annually.

Specifically: How much rent can I expect from June if the benchmark interest rate rises as expected?

There is likely to be an increase of between four and five percent.

You can use the Rent Calculator from the Tenants Association to check for yourself whether or not an increase is offensive.

What if I don’t accept it?

If you do not agree, or if the account has been miscalculated, you may appeal to the arbitration committee in your country of residence within 30 days of receiving the notification.

Many tenants are ashamed of this – they are afraid of a complicated procedure …

In fact, this is not at all the case. It doesn’t even need an explanation. You just have to inform the arbitral tribunal that you do not agree to the rent increase because it is arbitrary. Nothing more than that is needed and it costs nothing. However, I highly recommend checking in advance if this is also true. On the other hand, most arbitration authorities provide free legal advice. In addition, the tenants’ associations provide information – there is also a rent calculator for the tenants’ association, with which you can check for yourself whether the increase is arbitrary or not.

You can also stand up for yourself if you acquire a new apartment. When does it make sense to contest an initial lease?

The challenge is worth it if the rent has increased significantly compared to the previous tenant. I’ve seen examples in increments of up to fifty percent. Cases like this are often settled by settlement – often before the actual arbitration session. Most importantly, if you want to appeal, you must do so within 30 days of receiving the keys.

Interviewed by Stefan Wethrich.