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Tenants should be prepared for the big mail: many are likely to face a rent increase in the next few days. As the reference interest rate has risen, landlords are now allowed to increase the rent by three percent, provided they also accept previous discounts. Specifically, all rental households whose leases are based on a reference rate of 1.25% are currently affected.
Swiss Life, UBS and Zurich increase
Real estate professionals expect many administrations and landlords to push for a rent increase on this occasion. Blick asked the big estate owners and managers in Switzerland.
More than 20,000 tenants at Swiss Life will receive a rent increase of approximately three percent in November 2023. In the company’s housing portfolio, which was once Switzerland’s largest real estate owner, about 55 percent of leases are based on a reference interest rate of 1.25%. “This specifically corresponds to approximately 21,000 residential rental contracts,” said Swiss Life.
Owner Zurich Switzerland will also increase rents for all rental households whose contract is still based on a reference interest rate of 1.25%. How many there are, Zurich does not explain. Property owner UBS is similarly uncertain: The bank will adjust rents for a portion of its real estate portfolio upon request.
big little exception
For municipal offices in Zurich and Bern, the decision is still pending. So far, Bern has dismissed the reference rate cuts without being asked. Now you can also increase the rents. Whether that will happen remains to be seen.
Meanwhile, tenants at SBB residences can consider themselves lucky. “There are no rent adjustments planned at SBB at this time,” spokeswoman Sabrina Schellenberg told Blick. It’s a shame that only a few tenants can look forward to it. Because SBB has almost no weight in the housing market. Apartments rented by SBB itself make up only about 0.1 percent of the Swiss rental apartment market.
Meanwhile, property manager Wincasa tries not to attract attention. “It is at the owner’s discretion whether there is a rent adjustment due to the reference interest rate adjustment,” Wincasa writes. Since the administration works for different owners, there is no uniform application. Wincasa does not want to give exact figures. Real estate manager Livit does not look at the cards either.
Time is running out
Everyone must already know how many letters to send to the post office in the next few days. Because time is running out. Landlords can only adjust the rent if the notice period is respected. A ten-day reflection period should also be considered. Therefore, the notice of the lease change must reach the tenant at least ten days before the start of the notice period.
Actors are clearly aware that rent growth has explosive potential. “We realize that the situation is not easy for many tenants,” Wincasa writes. In addition to the energy crisis, general inflation and a tense housing market, they may now face additional costs in the form of rent increases.
Inflation on it
It’s okay to waive an increase because of already high inflation. On the contrary: Many landlords want to pass inflation on to tenants in addition to the reference interest rate. For example Zurich, Allreal and Swiss Life. “On an individual contract basis, we also examine the pass-through of other factors such as inflation or overall cost increases,” Swiss Life says.
The homeowners association expects things to heat up in the coming days. The association does not know how many landlords and landlords will increase rents.
“However, we know from previous experience that our members need to behave properly,” says spokesperson Anita Stecher. “It’s fair that landlords who pass on reference interest rate deductions to tenants can now increase them as well.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
