Rent increases in Switzerland: your rights as a tenant

1. What determines the amount of rent?

The following factors can affect the amount of rent:

• Reference interest rate

• National Consumer Price Index

• Rent reserve/rent reservation

• General operating and maintenance costs

The landlord may combine these reasons. You can find out exactly how the individual increases are calculated in the following sections.

2. How does the reference interest rate affect rent?

The reference interest rate is the average interest rate for existing mortgage loans in Switzerland. It has been used as a factor in calculating rent since 1983.

Currently, the reference interest rate is 1.25%. It has been in effect since 2nd September 2025 and was also confirmed by the Federal Office for Housing for 2026.

The following generally applies:

• If the reference interest rate increases by 0.25 percentage points, your landlord may increase your rent by 3% (Art. 13 VMWG) (in German).

• If the reference interest rate drops by 0.25 percentage points, tenants can request a rent reduction of 2.91%.

3. How does the National Consumer Price Index affect rent?

Landlords can use general inflation as a basis for a rent increase. Inflation can be determined on the basis of the National Consumer Price Index determine.

Important: the landlord may only only pass on up to 40% of the inflation to the tenant. Indexed rental agreements are the exception to this.

4. How do general cost increases affect the rent?

In addition to the reference interest rate and inflation the landlord can claim a general cost increase as well. Cost drivers include:

• Property taxes

• Fees

• Maintenance and administration costs

• Insurance premiums

The landlord must be able to prove the increase in costs. Often, flat rates of 0.5% to 1% are applied.

5. What does «rent reserve» mean when signing the contract?

Look out for a mention of rent reserve or rent proviso in the lease. In this way, the landlord already expresses in advance that they intend to raise the rent. If a rent reserve is clearly stated, it is legally valid.

It can either be an absolute amount in Swiss francs or a percentage. If a reservation is defined in the contract, the increase can be made later at any time. However, as the tenant, you can challenge the increase and have it reviewed.

6. Having your initial rent checked: how it works

You can have your initial rent checked. The landlord may not freely determine how high the rent should be. Tenancy law states that landlords may only generate a reasonable return.

If your rent is too high, you can challenge it. And even after signing – up to 30 days after the keys have been handed over.

But when is the rent too high? As a tenant, it’s usually difficult to determine this. However, a warning sign is if your rent is significantly higher than that of the previous tenant.

How much did the previous tenant pay?

In some cantons you will find out automatically. In Basel-Stadt, Geneva, Lucerne, Neuchâtel, Vaud, Zug and Zurich, a form requirement applies. This means that the landlord must show you how much rent has been paid for the apartment so far. This form comes together with the rental agreement. However, the form requirement only applies once the vacancy rate falls below a certain level.

In all other cantons, you must ask for it yourself. The landlord must provide the information on request. Often the easiest way to obtain it is from the previous tenant.

If the landlord has significantly increased the rent, it might be worth challenging it. Tenants can contest the rent increase in writing within 30 days of receipt of the notice of increase at the competent conciliation authority of their residential district. Many conciliation authorities provide a form for this. You can find out more about this from the tenants’ association (in German) you can learn more about this.

7. In what form must the landlord notify me of a rent increase?

The landlord must notify tenants of rent increases using an official form This form must state

• for what reason,

• on what basis,

• from what date

• and by what amount the rent is being increased.

The rent increase is null and void if the landlord does not announce it using the prescribed form, does not justify it, or threatens or declares termination with the notification.

8. From when does the rent increase apply?

A rent increase is permitted at the earliest on the next possible termination date Your landlord must notify you of the increase no later than ten days before the start of the termination period. These ten days should give the tenant time to think.

If neither an acceptance of the rent increase nor a challenge is an option, tenants can terminate the rental contract.

The contractually agreed notice period shall apply. If it is not included in the rental agreement, the statutory minimum notice period counts:

• Three months for housing

• Six months for business premises

• Two weeks for furnished rooms

If no termination date is specified in the lease agreement, the statutory dates apply, i.e. the usual termination dates at the place of residence.

9. How do I challenge a rent increase?

If you do not agree with a rent increase, you can within 30 days of receipt of the notice of increase (Art. 270b CO). The responsible authority is the conciliation authority at your place of residence.

Here’s what to do:

• Check the notice of increase: Was the official form used and the increase justified? If both are missing, the increase is invalid.

• Use the rent calculator to see whether the increase is even permissible according to the applicable rates.

• Submit your appeal in writing to the conciliation authority – within 30 days. The process is free of charge in many everyday cases.

Important: Pay the increased rent during the proceedings subject to reservation further. This way, you avoid being given notice for late payment.

Comparis tip: Many arbitration authorities and the tenants’ association (in German) provide forms and sample letters for contesting increases.