Are you a property owner in Switzerland who has just carried out renovation work on one of your rental properties? Do you already have a tenant and want to increase the rent? In Switzerland, many landlords undertake major renovations to increase the rental value of their properties. But do you have the right to impose a rent increase, and how can you do so in compliance with current regulations?
In Switzerland, the law provides for the possibility of a rent increase following significant renovation work that improves the rental value of the property. This work may include renovating the kitchen or bathroom, installing double glazing or adding a lift, for example. But for this rent increase to be perfectly legal, it will be up to you to prove that the works have actually led to an increase in the rental value of the property in question.
Increasing the rent as a result of renovation work requires a specific procedure. Firstly, you must inform the tenant of your intention to increase the rent, specifying the nature of the work to be carried out and the amount of the proposed increase. This letter must be sent by registered post. The tenant then has 30 days in which to accept or contest the increase. Note that the rent increase can only take effect on the anniversary date of the lease. In addition, it must comply with the principle of proportionality: the increase must not be disproportionate to the increase in value brought about by the works.
Faced with the complexity of Swiss legislation on rent increases following renovation, SherlockHomes is offering a rental management service an innovative service for property owners. This service enables you to manage your properties efficiently, whether they are in Geneva, Lausanne, Fribourg or elsewhere in Switzerland. When you put your property up for rent, by creating an ad, our tool recommends an amount for the rent of your property. This is set according to the price at which it was previously let, the market price and various factors that can fluctuate on the price per m2, always in compliance with Swiss legal standards.
This article is not exhaustive and does not engage the responsibility of its author.
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