Are you, as a landlord, planning to increase rent?
What do you need to bear in mind? How should it be communicated?
As a landlord, you are generally bound by the contractually agreed rent for the duration of the tenancy. An increase in rent is only possible under certain conditions, and the new, higher rent must not be abusive. The main cases in which this applies are a significant change in the basis for calculating the rent (reference interest rate, inflation) and modernization measures that have increased the value of the property. If a corresponding rent reservation (also known as a rent reserve) has been included in the lease agreement (or the last time the rent was set), an increase is also possible due to adjustment to the local and neighborhood rents or due to insufficient returns. There is also the possibility of a rent increase if an indexed or staggered rent has been agreed upon.
Take the following steps:
- You must notify the tenant of the rent increase at least ten days before the start of the notice period on a form approved by the canton for such purposes and give a reason for the increase. If you are unsure whether your reason is sufficient, you can contact our legal telephone advice.
- Send the notification by registered letter to your tenant to prove you have complied with the relevant deadlines.
- Then you must wait for the tenant’s 30-day objection period to lapse. The tenant can object to the rent increase as wrongful at the mediation authority.
- If no objection is raised, the rent can be increased effective from the next locally applicable notice date.
Our template helps you to prepare a rent increase.