Real Estate Reference Rate = 1,25%

The reference interest rate for mortgages from 2. March 2020 is 1.25 %.

If your individual rent has not yet been adjusted to reflect the current reference interest rate of 1.25 %  you can demand a reduction.

The reference (or benchmark) interest rate offers a point of reference for the calculation of rents.

If, in the meantime, you have not yet received a reduction on your monthly rent, or were put on hold by the land lord or management company, then we highly recommend that you apply for a reduction as there is no increase of reference rate in sight.

Remember, the request for a rent reduction based on the real estate reference rate has to come from you as the tenant by sending a recommended letter to your landlord.

What to do if the landlord refuses?

The landlord must respond within 30 days. He can deny the request based on, for example, inflation or higher operating expenses. Double check if this is happing in your case.

Not all tenants benefit from a lower reference interest rate.

Rental contracts with indexed or government subsidised rents (often with housing cooperatives) are not bound to the reference interest rate. In this case, those with such a contract are not entitled to a rent reduction.

If you have more questions regarding your rental agreement, please take a contact

with us at office@easy-relocation.ch

Sources:

Mietrechtspraxis/pm


 
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