Setting the rent: what is allowed in Switzerland
How to set a fair, legally sound initial rent, when the official form is mandatory and what it must state since October 2025.
For a new tenancy you generally set the rent yourself. It must not be abusive, however, meaning it must not produce an excessive return (Art. 269 of the Swiss Code of Obligations, CO). The new tenant can challenge the initial rent before the conciliation authority within 30 days of taking over the flat (Art. 270 CO).
What to base it on
- Customary rents in the area: comparable flats by location, size, fittings, condition and year of construction.
- Previous rent: a clear increase over the previous rent should be justifiable, for example by renovations.
- Reference rate: the mortgage reference rate published by the Federal Office for Housing (FOH) is the basis for later adjustments.
Official form where housing is scarce
In cantons with a housing shortage you must notify the initial rent on an official form – currently, for example, in Zurich, Zug, Lucerne, Bern, Basel-City, Fribourg and Geneva and in parts of Vaud and Neuchâtel (as of early 2026; the FOH keeps the current list). The form states the previous rent and the new rent including service charges and, since 1 October 2025, also the reference rate and inflation on which the previous rent was based. Without the form, or with an outdated one, the agreed rent may be void.
Service charges and deposit
You may only charge service charges that are listed individually in the contract (Art. 257a CO), such as heating, hot water or caretaking – as monthly advance payments with an annual statement or as a flat rate. The deposit is at most three months’ rent and is held in a blocked account in the tenant’s name (Art. 257e CO).
Practical tips
- Compare your price with active listings in the area. On this platform, the price comparison shows the median per m² while you create the listing.
- State net rent and service charges separately – clear prices bring more suitable applications.
- Keep receipts for investments; they justify a higher rent.
This overview is not legal advice. The cantonal conciliation authorities and homeowners’ and tenants’ associations can help with questions.
Frequently asked questions
May I raise the rent when tenants change?
Yes, as long as the new rent is not abusive, for example because it is customary for the area or justified by investments. The new tenant can challenge the initial rent within 30 days.
Where do I get the official form?
From the competent cantonal office or conciliation authority. Since 1 October 2025, only use the current version.
How high may the deposit be?
For flats, at most three months’ rent, held in a blocked account in the tenant’s name.