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 can raise rent at any time as of the next possible termination date. An increase is permitted if the rent is not improper, in other words the income from the
rental property is appropriate. Moreover, if the rent increase is within the scope of local or neighborhood prices, then you can justify the change by stating that local or neighborhood rents have trended upward since the last time rent was set. However, to do so you must have created rent reserves the last time rent was set. Rent reserves constitute a declaration of the landlord that the rent has not been completely adjusted.
You can also raise rent if you have taken modernization measures or measures that have increased the value of the property.
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.