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Rents are also exploding in cooperatives. But only in the canton of Zurich. Other cantons do not have this problem. This is because the canton and the city of Zurich have passed laws that do not exist elsewhere. These were originally intended to protect tenants living in affordable cooperatives. However, these laws now allow for higher rent increases than in the private housing market, where different rules apply.
The Zurich Frohheim building society has increased rents at its Schwizerberg property in Uster ZH by 30 percent and at its Brüderhofweg property in Zurich by 25 percent. This was reported by “NZZ am Sonntag”. From April 1, a family in Zurich will have to pay 450 francs more per month in rent for cooperative flats. Your rent is currently over 3,000 francs, excluding additional costs.
Tenants’ association calls for resistance
The example is an extreme case. But other Zurich cooperatives, such as ABZ, are also increasing rents by an average of 5 to 8 percent. When divided into individual settlements and apartments, there can be significantly more.
Affected cooperative members in Zurich can defend themselves against the increases. However, like all other tenants, he is not in the arbitration board or the rental court. However, instead, to the complaint authority specified in the rent increase form. In the city of Zurich, the Department of Finance has a Community Housing Department.
But asking management can also help. “We recommend that cooperative members request the basis of calculation from the management,” says Walter Angst of the Zurich Tenants’ Association. “The objections are also reasonable,” he says. The objection authority must first check whether the maximum allowable rent limit has been reached. “He or she can also look at the co-op’s bill and make recommendations on how the surcharge could be reduced or gradually increased.” Before rents increase significantly, cooperative boards need to check whether depreciation can be avoided.
Angst calls on cooperatives: “Sharp cost increases exceeding 100 francs should be passed on to tenants gradually over a few years, whenever possible.” But he also says: “If construction costs and interest rates rise, only very well-managed cooperatives can avoid such increases.”
Indexed values are the problem
The crux of the problem is that in Zurich, when the value of property increases sharply, cooperatives are allowed to charge tenants higher operating costs, even if actual costs do not increase much. Rents may be increased if the cost index of cantonal building insurance increases. A similar automatic mechanism applies to capital costs that depend on the reference interest rate.
Cooperatives can now rise significantly as two values indexed in Zurich rise rapidly at the same time. However, rent increases can only be made in advance if the responsible authority approves. “Our expert office confirms the maximum allowable increase per residential area,” a spokesperson for the city of Zurich confirmed. However, it is the responsibility of the cooperatives whether to implement this increase or not. Simply put, it is always possible to charge less than the law allows.
Feature of the rental hell in Zurich
What’s surprising: Huge increases in cooperative flats are a feature of Zurich’s rent hell. This problem does not exist in the canton of Lucerne, says Daniel Gähwiler from the Lucerne Tenants Association. Since Lucerne has not passed its own laws regarding the cost of rent, it does not expect price increases like in Zurich. “Lucerne housing cooperatives are only allowed to increase rent if actual costs increase. There is no automatism associated with building insurance value as in Zurich. » The situation is the same in the cantons of Aargau and Bern.
Despite the problems existing only in Zurich, the canton of Zurich sees no reason to change the law. This is what the spokesperson of the Zurich Economic Directorate says. The cost rent principle only applies to a very small proportion of all flats in the canton. Moreover, the law specifies only the highest possible framework for apartment rent. It is at the discretion of the cooperatives whether this framework is exhausted or not. The Zurich regulation is also suitable for preserving value and covering maintenance costs.
Source : Blick

I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.