Few Swiss tenants are asking for lower rent, despite a fall in the mortgage reference rate that entitles many to a reduction. A study by Zürcher Kantonalbank (ZKB) finds that although nearly half of tenants could have benefited from the most recent cut, only about 12% actually did so. In the canton of Zurich, where as many as 70% of tenants may be eligible, the take-up rate is just 16%.
The reference rate, set quarterly by the Federal Office for Housing, was reduced twice last year to 1.25%, its lowest level on record. Because rents in Switzerland are partly linked to this benchmark, a decline can be used to demand lower rent. Yet reductions are not automatic. Tenants must assert their claims themselves.
In addition, landlords are allowed to offset higher costs or inflation, and In some cases, inflation can cancel out any potential decrease altogether. Uncertainty appears to be a major deterrent. According to ZKB, many tenants fear that requesting a reduction could trigger a rent increase, given rising costs.
Others are put off by the administrative effort or are unsure whether they qualify. As a result, those who do nothing generally continue to pay the same rent.
Tenants who have already requested a reduction are more likely to do so again: around half of them acted a second time following the latest cut, potentially securing a larger cumulative decrease. The bank suggests this pattern could spread.
Even so, the broader market has only eased slightly. Rents for existing apartments fell by just 0.2% in the latest quarter, according to recent data.
More on this:
ZKB report (in German)
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