Reference interest rate increased – arbitration boards due to rent increases at the attack – News

• Because the federal government has increased the reference interest rate, many Swiss tenants will soon have to pay higher rents.
• But many are resisting it, as the “Sonntagszeitung” writes.
• This brings the arbitration boards to the attack.

In the city of Zurich alone, over 1,100 objections to rent increases were received within just under a month. According to the authorities, there is also a wave of complaints in the cantons of Basel-Stadt, Bern and Lucerne.

Rent increases drive tenants


open box
close the box



The fact that rent increases are a concern for tenants is also reflected elsewhere: the tenants’ association received significantly more inquiries at the beginning of June, and the rent calculator was also actively used. Between June 6th and 12th, for example, more than 5,000 rents were checked in the computer in Zurich alone, writes the “Sonntagszeitung”.

Delays hit tenants with fewer resources

The arbitration board of the canton of Lucerne reports that the large crowds are causing delays in the appeal process. This could become a problem for tenants who find it difficult to afford the rent increases.

The rent will not be increased during the process. However, if the arbitration board considers the rent increase to be justified, the rent increase must be paid retrospectively.

Increase in rents under conditions legitimate

On June 1, the reference interest rate rose for the first time since 2008 – to 1.5 percent from the previous 1.25 percent. A quarter percentage point increase in the reference interest rate means that the rents of the existing contracts can be increased by three percent.

However, there are limitations. Only those rents that are based on the current reference interest rate of 1.25 percent may be increased. In other words, those homeowners who have passed on the reductions to tenants in recent years are allowed to raise rents.