Reference rate down: request a rent cut
Reference rate down? How to calculate your rent reduction, send a written request to your landlord and, if needed, go to the conciliation authority.
The mortgage reference interest rate is the basis for rent adjustments in existing tenancies (Art. 12a VMWG). The Federal Office for Housing (FOH) publishes it every quarter. If it falls below the rate on which your rent is based, you can request a reduction (Art. 270a CO). Landlords are not obliged to pass on a reduction of their own accord – as a rule, you have to ask for it.
How much lower can the rent be?
For each drop of 0.25 percentage points, the net rent falls by 2.91%; for 0.5 percentage points, by 5.66% (Art. 13 VMWG, as long as the rate is below 5%). Example: if your net rent of CHF 2'000 is based on a rate of 1.50% and the reference rate is now 1.25%, the calculated reduction is about CHF 58 a month. The rate your rent is based on is stated in your lease or in the last rent adjustment. The reference rate calculator shows the current rate and works out the figure for your flat.
What the landlord can offset
- Inflation: 40% of the change in the Swiss consumer price index since the rent was last set (Art. 16 VMWG).
- Cost increases: for example higher maintenance costs, fees, property taxes or insurance premiums (Art. 12 VMWG), in practice sometimes as an annual flat rate.
- Value-enhancing investments made since the last adjustment, if they have not yet been passed on (Art. 14 VMWG).
The landlord must justify these items specifically. The rate on which your rent is based is compared with the current rate – earlier reductions that were never passed on also count (Art. 13 para. 4 VMWG).
How to proceed
- Request in writing: send the landlord a signed letter, ideally by registered mail, asking for the reduction as of the next termination date. The letter must arrive before the notice period begins.
- Wait for the reply: the landlord has 30 days to respond (Art. 270a para. 2 CO).
- Go to the conciliation authority: if the landlord refuses, only partly agrees or does not reply, you can apply to the tenancy conciliation authority where the flat is located within a further 30 days. Conciliation proceedings for residential tenancies are free of charge.
As a rule, a reduction is not possible for index-linked or graduated rents (Art. 269b and 269c CO) or during the fixed term of a fixed-term lease.
On immoz.ch you create the reduction request directly from the digital lease as a letter for signing. Once the delivery date has been recorded, the platform shows the 30-day response deadline, and the landlord’s reply is kept on record with the lease.
This overview is not legal advice. The cantonal conciliation authorities and homeowners’ and tenants’ associations can help with questions.
Frequently asked questions
Will my landlord lower the rent automatically?
No, they are not obliged to. You have to request the reduction in writing (Art. 270a CO).
From when does the lower rent apply?
From the next termination date under your lease, provided your request arrives before the notice period begins. There is no retroactive reduction.
Am I risking termination of my lease?
Notice given because you assert claims under the lease in good faith can be challenged (Art. 271a para. 1 let. a CO). After conciliation proceedings, special protection against termination also applies for three years in certain cases.
What if my lease does not mention a reference rate?
It is then generally presumed that the rent is based on the rate that applied when the lease was signed or at the last rent adjustment.