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The benchmark interest rate has just fallen by 0.25 points to 1.5%. For some tenants, this could mean a rent reduction, but not for all. How do you know if you're entitled to a reduction, and what steps should you take? Here's the lowdown.

Why is the reduction in the reference rate important?

The reference mortgage rate is a key factor in setting rents in Switzerland. It is set by the Federal Housing Office (FHO) and adjusted every three months according to the average mortgage rates applied by the banks.
When this rate falls, tenants can in principle request a rent reduction, provided their lease is based on a rate higher than 1.5%.


What impact does this have on your rent?

If your rent is based on a rate of 1.75% or more, you could obtain a reduction of up to 2.91%. On the other hand, if your rent is already indexed to 1.5%, no reduction is possible.

Good to know: In addition to the reference mortgage rate, other factors such as increases in charges and inflation can influence the calculation of rent. A landlord can therefore put forward arguments to limit or refuse the reduction.

How to check whether you are entitled to a rent reduction?

1. Check the reference rate applied to your rent

Consult your lease contract or the latest rent adjustment notice. You can also use an online calculator (such as ASLOCA's) to estimate the possible reduction.

2. Respect the application deadline

You must send your request before the next lease expiry date, taking into account the notice period mentioned in your contract (often 3 or 4 months before the annual expiry date).

3. Prepare a written request

  • Mention the reduction in the reference rate and your entitlement to a reduction
  • All tenants on the lease must sign the request
  • Send it by registered mail to your landlord or management company

4. Wait for the landlord's reply

The landlord or management company has 30 days to respond: He accepts → Your rent will be reduced at the next due date.
He refuses totally or partially → He must justify his refusal (increase in charges, renovations, etc.).


What should I do if my request is refused or if there is no response?

If your request is refused without valid justification, or if you don't receive a response within the allotted time, you can refer the matter to your canton's Conciliation Commission.

Time limit :
  • If the management or owner responds within 30 days → You have 30 days to contest the decision
  • If management or owner do not respond → You have 30 days after the deadline to initiate proceedings
The Commission will organize a hearing to try to reach an agreement. If this fails, it will propose a decision or issue an authorization to proceed to the Leasehold Tribunal.


Do I need to apply?

If you qualify, applying for a rent reduction can save you several hundred francs a year. But beware: some landlords may put forward arguments to refuse the reduction. Check your situation carefully before sending in your request.

Tip: Use an online rent calculator to quickly estimate your potential rent reduction and prepare your application with peace of mind.

Don't let this opportunity pass you by: check now whether you're entitled to a reduction and assert your rights!


Sources
rts.ch - Article
admin.ch - Article
asloca.ch - Article