How to Navigate Rent Reduction Requests After the Swiss Reference Interest Rate Decrease
On March 1, 2025, the Swiss Federal Housing Office (BWO) announced a decrease in the reference interest rate from 1.75% to 1.50%. This reduction has a direct impact on rental prices, and tenants across Switzerland may now be entitled to request a rent reduction. If you are a tenant, it is crucial to understand your rights and obligations in this situation. Here’s what you need to know and how to act.
Why Does the Reference Interest Rate Matter ?
The reference interest rate serves as a key benchmark for determining rent prices in Switzerland. When the rate increases, landlords have the right to raise rents, while a decrease gives tenants the opportunity to request a rent reduction. The principle behind this system is to align rental costs with changes in financing costs for property owners.
Who Can Request a Rent Reduction?
- If your rental contract is based on the reference interest rate (which is the case for most contracts), you are likely eligible for a rent reduction. However, some exceptions apply :
- If your contract already accounts for fluctuations in the reference interest rate.
- If your rent was recently set at a lower rate reflecting expected reductions.
- If additional cost factors, such as inflation or maintenance expenses, have been explicitly considered in the rent calculation.
How Much Can Your Rent Decrease?
As a general rule, a 0.25% decrease in the reference interest rate could result in a rent reduction of approximately 2.91%. However, landlords may argue that rising costs (e.g., inflation, maintenance, or renovations) justify maintaining the current rent.
Example Calculation
If your current rent is CHF 2,000 per month and you are entitled to a 2.91% reduction, your new rent would be:
CHF 2,000 – (2,000 × 2.91 / 100) = CHF 1,942
This means you could save CHF 58 per month.
How to Request a Rent Reduction
Check Your Rental Contract: Look for any clauses related to rent adjustments based on the reference interest rate.
Calculate Your Potential Reduction: You can use online rent reduction calculators available on tenant association websites.
Write a Formal Request: Send a written request to your landlord, citing the reference interest rate decrease and requesting an adjustment. Be sure to mention your rental contract details and the expected reduction percentage.
Respect the Deadline and Termination Terms: The rent can only be adjusted according to the termination terms stated in your contract. For example, if your contract allows termination every three months, your rent reduction will take effect at the next possible termination date after submitting your request.
Negotiate if Necessary: If your landlord refuses or suggests only a partial reduction, be prepared to discuss their reasoning.
Seek Legal Support: If your request is denied unfairly, you can seek assistance from local tenant protection associations or file a complaint with the cantonal conciliation authority.
Need Assistance ? Contact Relonest
Navigating rent reduction requests can be complex. If you need help preparing your request or understanding your rights, Relonest can assist you in ensuring a smooth and fair process. Get in touch with us for expert support tailored to your situation.
Final Thoughts
The decrease in the reference interest rate presents an opportunity for many tenants to lower their housing costs. Being proactive and well-informed will help you take advantage of this change. If you have any questions or require assistance, don’t hesitate to contact Relonest for expert guidance.
