Sunday , April 5 2020
Home / le News / Potential relief for some Swiss renters

Potential relief for some Swiss renters

Summary:
Every three months the rate of interest used to benchmark Swiss rents is reviewed. If it goes down some renters have the right to request a decrease in rent. This time the reference rate fell from 1.50% to 1.25%. © Ocskay Mark | Dreamstime.comThe last time it dropped was 2 June 2017 when it fell to 1.5%. The rate is based on the average Swiss mortgage rate over three months. This rate is then rounded to the nearest 0.25%. On 31 December 2019 that rate was 1.37%, which is closer to 1.25% (-0.12) than 1.5% (+0.13). In general if your rental contract links your rent to mortgage interest rates then you can demand a decrease in rent when this reference rate declines. The Swiss Association of Tenants, Romande branch, provides useful information on when and how to go about making a

Topics:
Investec considers the following as important: , , , ,

This could be interesting, too:

Investec writes Coronavirus: loss of smell indicates “very high likelihood” of infection

Investec writes Coronavirus: deciding who gets a ventilator

Investec writes Coronavirus: Swiss tourism expected to lose 6.4 billion francs

Investec writes Coronavirus: Swiss test rate now higher than South Korea’s

Every three months the rate of interest used to benchmark Swiss rents is reviewed. If it goes down some renters have the right to request a decrease in rent. This time the reference rate fell from 1.50% to 1.25%.

Potential relief for some Swiss renters
© Ocskay Mark | Dreamstime.com

The last time it dropped was 2 June 2017 when it fell to 1.5%.

The rate is based on the average Swiss mortgage rate over three months. This rate is then rounded to the nearest 0.25%. On 31 December 2019 that rate was 1.37%, which is closer to 1.25% (-0.12) than 1.5% (+0.13).

In general if your rental contract links your rent to mortgage interest rates then you can demand a decrease in rent when this reference rate declines. The Swiss Association of Tenants, Romande branch, provides useful information on when and how to go about making a demand. Their website (in French) can be found at www.asloca.ch.

Reference rates since September 2008 can be viewed here.

More on this:
Government press release (in French) – Take a 5 minute French test now

For more stories like this on Switzerland follow us on Facebook and Twitter.

About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *