“We have advised many tenants to object to the increase,” says rent arbiter Nicole Schweizer.

Despite the latest increases in the summer of 2023, the co-head of legal advice at the Zurich Tenants Association has his hands full. “We received as many inquiries in just a few months as we would normally receive in a year,” says Nicole Schweizer (36), who also works as an arbitrator in the rent arbitration chamber of the Pfäffikon District Court in ZH. “Those affected specifically wanted to know from us whether the increases were within legally justified limits or whether they should object to the rent increase.”

The Zurich Tenants’ Association has examined a large number of cases and concluded: “The size of the rent increases is often not justified. That’s why we recommended that many people object to the increase,” says Schweizer. This is lower due to the high reference interest rate at which many administrations are allowed to add three percent to the rent in October. But only if they have surpassed previous reductions. Landlords are also allowed to pass on a flat-rate cost increase to renting households if it can be legally justified.

Aren’t high fixed rates often justified?

This flat rate includes operating costs that are not already offset by additional costs. It may cause the net rent to increase by up to 1 percent annually since the last lease change. “In many cases, that’s too much,” Schweizer says. Especially in new buildings where almost no repairs have been made or many items have already been billed as additional costs. In such cases, the association believes that a surcharge of just 0.25 percent is not justified.

Various arbitration authorities in the canton of Zurich had previously proposed very different surcharges for flat-rate cost increases. But the association successfully insisted: “The arbitration authorities in the canton of Zurich agreed that homeowners would have to prove the increase in costs in the future or the authorities would accept uniform flat rates,” says Schweizer.

What many people don’t know: Going to arbitration is free. From the moment the parties cannot reach an agreement, the matter goes to court. In most cases, tenant representatives advise you to remain firm and not sign an agreement with the administration if you think you are right. If landlords rarely disclose their documents at arbitration meetings, they will certainly have to unpack before tenant court. However, costs may arise from this court stage.

The sheer volume of arbitration proceedings is pushing the authorities to their limits: most negotiations will not take place until next year and will concern objections to the first rent increase from summer 2023. During this period, administrations are not yet allowed to implement the planned plan. Rent increase for residents.