A number of tenants in Switzerland are entitled to pay less for their rented accommodation than the amount their landlord charges. But many don’t seek to have their rents lowered.
This is what emerges from a new survey carried out by the Swiss Tenants Association (ASLOCA).
It reveals that nearly 40 percent of tenants spend more than one-third of their income on rent and are therefore “at risk for precariousness.”
An even higher number – 42 percent – qualify for a rent reduction due to the lower reference interest rate.
However, “only 5 percent of tenants have ever contested it,” ASLOCA said. “They don’t dare to assert their rights.”
Why is that?
Fear of losing their home plays a “decisive role,” for this lack of action, the survey shows.
According to ASLOCA, “this concern is well-founded, especially given that some lease terminations are actually part of speculative strategies aimed at increasing rents.”
Renters also fear damaging their relationship with their landlords.
“Tenants generally have to assert their rights while being in a dependent relationship with their landlords,” the association pointed out – meaning that they have little clout in this power imbalance and are therefore reluctant to ‘rock the boat’.
However, Swiss legislation grants tenants certain rights, including in regard to rent.
To contest the initial rent, they have a deadline of 30 days which begins to run on the day after they receive the keys.
Once this period has elapsed, however, so has their right to challenge, so it is imperative to act quickly.
As far as existing rents are concerned, several situations allow tenants to seek rent reduction.
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Lower reference interest rate
Most rents in Switzerland are determined by the reference interest rate – an average of all interest paid on Swiss mortgages.
It is currently 1.25 percent.
If the rent is based on a higher rate, “tenants are generally entitled to demand a rent reduction of 2.91 percent if their rent is based on the [previous] rate,” according to the Federal Housing Office (BWO).
Renovations
This kind of work – including repairing the facade, changing an elevator, installing double-glazed windows – will most likely result in nuisances such as dust, noise, paint smell, lack of light, etc.
These nuisances constitute a defect that restricts the use of the rented property and could be – based on the intensity and duration of the works – a basis for requesting a reduction in your rent.
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Should you be afraid to ask for your rent to be reduced?
Many tenants are afraid to have their lease terminated or not renewed because they asserted their rights.
But you should know that your relationship with the owner(s) of your accommodation (and theirs with you) is defined by the law, not emotions, and all conflicts / disagreements – whether about rent or other matters – must be resolved within the legal framework.
So if you get an eviction notice because you asked for your rent to be reduced, the law is likely to be on your side.
If the court decides that the eviction is nothing more than a revenge measure, then you are protected against a termination for a period of three years.
However, this period can be shorter if the landlord really needs the apartment for important reasons, which depend on the discretion of the judge.
READ MORE: How to resolve a dispute with your Swiss landlord
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