Requirements to determine the rent in line with the range of rents customary in the neighborhood or the district
When the issue arises as to whether particular rents are unfair, the lessor has the option to argue that the rent falls within the range of rents customary in the neighborhood or the district. This is particularly relevant in connection with rent increases or the request for rent reductions by tenants.
But what is “the range of rents customary in the neighborhood or the district”? The Swiss Federal Tribunal has consistently held that the lessor needs to present five comparable objects that are located in the same village or in the same neighborhood but owned by different proprietors, and that are comparable to the rental object in regard to location, size, facilities, condition and building period. The number of rooms, the living space and the room layouts are of interest regarding the size.
Pursuant to the Federal Tribunal, a discrepancy in living space of 15% is already critical. Geographical proximity is not sufficient for a comparable location, instead the comparability depends more on traffic situation, available infrastructure such as shopping and recreational opportunities, immissions, as well as on the view and the sunlight. The facilities and the condition of the compared objects must be evaluated based on the overall impression. In particular, the facilities and renovation work should be considered. Moreover, the compared objects should have been built in the same period and with similar construction methods and technology. Besides, the rents of the objects compared should not deviate from the disputed rent of the initial object by more than 30-40%.
The relevant details regarding the comparable objects must not be based on advertisements in newspapers or on the internet only . In fact, the courts often require that lease contracts be furnished as evidence. Contact details of the compared object’s owner can be inquired at the land registry without any proof of interest. This enables you to contact the respective proprietor and ask for the lease agreement as evidence for the alleged comparability.