Inflation, an increase in the mortgage interest rate, investments or work… It seems natural to you to reflect these increases in the rent. However, any increase in rent must be justified. Explanations.
In principle, the rent is set when the tenancy agreement is signed for the duration of the lease. In theory, therefore, there can be no review of the rent.
However, if the lease is renewed, a rent increase may be applied by the property owner, but this remains very tightly controlled. There are a number of grounds for this:
The landlord, on the other hand, is limited by legal grids and cannot proceed with an unfair rent increase.
In cases where the rental contract is signed for a minimum period of three years, the landlord, with the agreement of the tenant, may opt to set up a "chelonné" rent. This rent will then be adjusted no more than once a year. This rent increase must be completed in advance. Landlords sometimes complain that this type of lease lacks flexibility, particularly during periods of high inflation. Especially as the lessor will have to formally notify the lessee when the new lease comes into force.
To ensure that they do not lose out in the event of a generalised price hike, property owners may opt for a lease with an indexation clause, so that rent increases are permitted annually if the Swiss consumer price index rises. In this case, however, the lease must be for a minimum of five years. Although deferment and indexation cannot be combined, these two forms of rent adjustment can nevertheless be used in succession. A solution that is therefore favoured, with the aim of seeing the rent keep pace with the cost of living.
If all these legal considerations seem obscure to you, you can put your trust in SherlockHomes, which offers to take care of your rental management and, in particular, invoicing with or without rent reviews. The automated process developed by the platform, which specialises in putting landlords and tenants in touch with each other, simplifies not only the drafting of the lease (by managing a lease that includes these clauses and up-to-date rates) but also the consultation of rent payments on your SherlockHomes account. What's more, when you rent out your property, SherlockHomes can guide you to a fair rental price. All you need to do is provide a few details, such as the price of the old rent, and depending on the hypothetical rate of interest in particular, we will guide you to a reasonable increase in your rent and, above all, one that is adjusted to the current market.
This article is not exhaustive and does not engage the responsibility of its author.
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