Frequently asked questions

The formula for the relative method of rent adjustment is based on a model developed by the Federal Office for Housing. If the reference interest rate drops by a quarter of one percent, this will result in a rent reduction of 2.91%. In addition to the reference interest rate, 40% of the inflation rate (National Consumer Price Index) and cost increases may also be passed on to the rent. This can vary depending on the contract and the individual circumstances.

The reference interest rate is an indicator of mortgage interest rates in Switzerland. It is used as a basis for calculating rents. If the reference interest rate drops, tenants are generally entitled to a rent reduction.

No. Tenants must request the reduction from their landlord in writing. If no request is made, the rent will remain unchanged.

Yes, you can appeal the rent increase to the arbitration authority within 30 days of receiving the letter from your landlord. See the appeal instructions on the rent adjustment form.

It’s impossible to say at this point. The reference interest rate is announced quarterly by the Federal Office for Housing.
Experts assume that the reference interest rate will continue to rise over the next few years.

An adjustment can only be made based on a change in the reference interest rate if the interest rate of the tenancy agreement or the latest rent adjustment is lower than the currently applicable rate. An adjustment can be made for inflation or cost increases irrespective of the reference interest rate.

Inflation is determined using the National Consumer Price Index. The starting point is the index indicated in the tenancy agreement or as known at the time of the last rent adjustment. This is then compared to the new index.

In the event of an increase, we will inform you by post about the rent adjustment. You will receive the new payment details in good time before the increase becomes valid. 

Cost increases include any increases to costs for the operation, maintenance and management of the rental property. In practice, flat rates are used.

No, it can vary due to the basis for calculation.