Every three months the rate of interest used to set Swiss rents is reviewed. If it goes down some renters have the right to request a decrease in rent. This time it remains unchanged at 2.00%.
The interest rate used to set the reference rate was the average rate on Swiss mortgages at 31 December 2014 of 1.89% which rounds to 2.00% under the rounding rules. This rate of 2.00% has not changed since September 2013.
In general if your rental contract links your rent to mortgage interest rates then you can demand a decrease in rent when this reference rate declines. The Swiss Association of Tenants, Romande branch, provides useful information on when and how to go about making a demand. Their website (in French) can be found at www.asloca.ch.
When the reference rate declines those with such rental contracts should act smartly to ensure they get the maximum benefit. You can be fairly sure that landlords will be quick to increase your rent when the reference rate climbs.
The next rate will be announced on 1 June 2015 and could see a fall. If the average Swiss mortgage rate falls to 1.87% (0.02% lower than this time) the housing rental interest rate will drop to 1.75% – the rounding formula rounds to the nearest 0.25%.
Current and historical reference interest rates are presented on the Office fédéral du logement (OFL) website.
Your tenant and landlord rights (Le News – May 2014)