Unilateral Rent Increase by the Landlord
Article 269d, paragraph 1 CO stipulates that the landlord may increase the rent at any time for the next notice period. The notice of rent increase, with reasons specified, must be sent to the tenant at least ten days before the start of the notice period and must be done using a form approved by the canton. Therefore, rent increases are automatically null and void if they are not notified using the official form, if the reasons are not provided, or if they are accompanied by a termination notice or a threat of termination (Article 269d, paragraph 2 CO). This means that the tenant does not need to go to the conciliation authority to have the invalidity recognized.
Disputing Rent Increases
The rent increase must comply with the principles set out in Articles 269 and 269a CO. Rent will be considered abusive if it allows the landlord to obtain an excessive return from the leased property or if it results from an obviously exaggerated purchase price (Article 269 CO). If the tenant believes that the rent increase is abusive according to Articles 269 and 269a CO, they can dispute it before the conciliation authority within 30 days following the notice of increase (Article 270b, paragraph 1 CO). If conciliation fails, it is up to the landlord to seek validation of the rent increase (Article 209, paragraph 1, letter a CPC) within 30 days from the competent authority. The landlord will then need to justify the increase by providing evidence. If they fail to do so, the judge may refuse to accept the rent increase in whole or in part. If the conciliation authority makes a proposal for a judgment, it is up to the party opposing the proposal to act within 30 days (Article 211, paragraph 2, letter a CPC).
Request for Reduction of Initial Rent
Article 270 CO provides that if the tenant believes the amount of the initial rent is abusive according to Articles 269 and 269a, they can contest it before the conciliation authority within 30 days of receiving the property and request a reduction in two cases:
If they were forced to enter into the lease due to personal or family necessity or due to the local housing or commercial real estate market conditions.
If the landlord has significantly increased the initial rent for the same property compared to the previous rent.
Request for Rent Reduction During Lease
Article 270a, paragraph 1 CO stipulates that the tenant can dispute the amount of rent and request a reduction for the next notice period if there is a reason to believe that the leased property provides the landlord with an excessive return according to Articles 269 and 269a, due to a significant change in the calculation bases, particularly from a decrease in expenses.
The tenant must submit their request for a reduction in writing to the landlord, who has 30 days to respond. If the landlord refuses to grant the reduction, only partially accepts it, or does not respond within this period, the tenant can approach the conciliation authority. The application to the authority must be made within 30 days of the tenant receiving the landlord’s refusal to grant the reduction, or if the landlord does not respond, within 30 days after the expiry of the 30-day period given to the landlord to respond to the reduction request (Article 270a, paragraph 2 CO). The conciliation authority may make a proposal for a judgment. In this case, the party opposing the proposal must act within 30 days (Article 211, paragraph 2, letter a CPC). The authority may also issue a decision upon the tenant’s request when the disputed amount does not exceed 2,000 CHF (Article 212, paragraph 1 CPC). If conciliation fails, the tenant (Article 209, paragraph 1, letter b CPC) must file their request for a rent reduction within 30 days from receiving the authorization to proceed, with the competent authority (Article 209, paragraph 4 CPC). The jurisdiction, which is partially mandatory, is at the location of the property (Article 33 CPC).
In Summary
In the case of a request for a rent reduction, the tenant has the standing to act. They must request conciliation and then file for simplified procedure if conciliation fails. In the case of a judgment proposal, the party opposing the proposal must file for simplified procedure. For disputes regarding rent increases, the tenant must request conciliation. If conciliation fails, it is up to the landlord to act to validate the rent increase by filing a request for simplified procedure (Article 209, paragraph 1, letter a CPC). In case of a judgment proposal, again, the party opposing the proposal must file for simplified procedure.
As for the burden of proof, it rests on the tenant for the reasons they invoke for a reduction and on the landlord for the reasons they provide for a rent increase (Article 8 CC).
Do you want to challenge a rent increase or request a reduction in rent? Our team of professionals will be pleased to welcome you at our office located at rue du Valentin 1, 1004 Lausanne, to advise and assist you with your legal procedures.
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