Exactly, so somebody agrees a lease, probably with a minimum period as well, signs a contract and is now not happy. This happens every week here, I really don't get it.
We also get threads that's it's impossible for a foreigner to get any flats, because landlords prefer to rent to Swiss, I wonder why!
On another thread everybody is happy when the price of gold rises & want's to buy more, i don't get that one either!
Well, our real estate agent down in Vaud told us that the gerances (landlord companies) prefer the influx of expats to the Swiss because they were suckers when it came to knowing their rights and fighting for price...
In this market, there is no preference for Swiss. All the companies are fighting over the Philip Morris etc. employees.
You'd be surprised. I took an apartment once that was newly refurbished (I was first tenant after the renovation), completely new kitchen/bathroom, new floors, new windows and everything had a fresh coat of paint. The agency even showed me the previous rental contract (about CHF. 800.-per mo.) and my new contract which was for well over CHF. 1,300.-per mo..!
In the end though despite all the new gleam the building was still nothing more than military style barracks which were built back in the 50's (cheap construction, very thin walls) now far more expensive to rent than they were actually worth.
If you are a tenant the landlord can apply small adjustments to your rent due to increased costs. For example if mortgage rates go up (or down) you will get a rent increase (or decrease). If they install a lift or a new bathroom/kitchen etc - your rent will go up.
Between tenants the landlord is free to do whatever the hell he wants with the rent. If rented for 1000chf and he feels he can now get 4000chf that his perogative. Eventually he'll find a tenant who will, most likely, agree to pay a market value.
When you have had long term tenants, especially in high demand areas (Zurich, Geneva), you'll find the "new" rents noticably higher than the "old" rents.
Long term tenants are protected - remind me, how is that a bad thing?
How does it vary from canton to canton? I thought it was pretty universal (to summarize dodgyken) that you can set a rent for a new tenant at whatever level you like, but rent increases for a sitting tenant are limited to prevent landlords from screwing them out of their home if they reckon they can get more from a new tenant.
Indeed if tenants sit tight, increases of this ilk cannot apply. Problem is, many people HAVE to move when they start or increase a family- and then face hugely increased demand and rates for larger apartments to accommodate a family. Those young families I know in Geneva have all had to move out of Geneva- some of them all the way to Fribourg, Valais and Neuchatel, and re-locate jobs, to a/make ends meet b/ find suitable accom for their new and growing family. And as said, even though they are not anti-foreigners, they feel it is very unfair to say the least- and I have to say I understand how they feel.
So, they only advertised this apartment to foreigners did they? Some how I doubt it.
You went into mediation and they determined that that raise was justifiable.
How many years was the apartment rented at the lower price? If it was occupied by the same person for 10, 20, 30 years then the apartment isn't going to be priced at the market rate.
I'm surprised at the number of posts here that leapt to the defense of the gerances.
The law in the Canton of Vaud stated that for a new rental contract, the rent increase over the previous contract should not be abusive. This is normally done via a calculation of mortgage rates and consumer price index. However, there is an exception clause where the rent can be raised even higher if it is conforming to the current market conditions. The burden is on the landlord/gerance to prove that. If you think the rent increase is abusive, then you have 30 days from the time you move in to contest that. If the initial mediation is unsuccessful, then you can contest it at a court.
Expats are often ignorant of such regulations and hence accept the abusive rent increases without further investigation.
In my case the gerance have admitted that the rent increase was abusive, and is willing to decrease the rent, albeit not by much. I just want to know if anyone here have gone the full mile and contest it at the court. What was your experience, how long did it take, and if you have a lawyer that you can recommend.
as explained by other posters, it is not unregulated and you cannot set a rent level to whatever you like. if the rent is abusive, you can get it reduced.
however, if the rent is market rent, then (AFAIK) normally it wouldn't be considered abusive.
If the rent is comparable to others in the area then there is no issue. Maybe the previous tenants were friends or family and they got a good deal. If the rent is way above others for the size and quality then why would you sign a contract, just keep on looking.
Some owners and gerances prefer to rent at a slightly lower rate to Swiss people in order to get long-term tenancy. Others, and it seems the majority now, will prefer expats who will be prepared to pay much higher rates. As they are not aware of what is the 'norm' they often accept rents which are disproportionate (until, like the OP, they cotton on afterwards). Re-location agents also have direct arrangements with gerances/immobilier - so flats don't even make it on to the open market- and are taken up by re-location agents at inflated rates (another thing which sadly does upset the locals- not surprisingly).
Well we are just back from mediation about our apartment this morning, quite literally. The other side offered not to increase the rent The person chairing the meeting told them not to be so stupid, if we take it further we will win without a doubt and cost the other side dearly in legal cost.
We are going for it to the next stage, either they agree a legal contract at a fair price which has been calculated or we see them in court.
Trying to pass of illegal contracts is shameful, threatening my wife is worse.
What it is okay for the Swiss to break the rules and behave like pigs and ex-pats have to just bend over and take it, I think not.
To the OP - seek advice from ASLOCA they are rarely wrong, the chairperson even commented on that point as well.
Well...while I do agree that ASLOCA is very helpful, I must also concede that they are very disorganized, at least here in the Lausanne area.
We had to go several times and each time met with a different 25 year old who gave us different (and at times contradictory!) advice. Each one would take careful notes and no one could ever find these notes when we would return for follow up visits, and sometimes would act shocked about what their colleague had told us to do. Finally, our case was escalated so that we could meet with the senior attorney who, after we waited more than a month to get an appointment with him, did not show up to the appointment.
Ultimately, the gerance did do most of what we wanted, but at the same time most of your results, even with ASLOCA, will depend on your own willingness and tenacity to see a dispute through to the end. In other words, don't expect miracles or a deus ex machina from ASLOCA.
Oh, back to the OP's question. Ask ASLOCA for attorney recommendations--they must know who wins these things. Perhaps they have attorneys who can represent you at the Conciliation hearing too.
I'm not blindly leaping to the defense of the gerance. The fact is you already went into mediation and the 48% is now slightly under current market rents for the same type of apartment, is that not correct? You said the apartment was refurbished, is that not correct? When you were looking at apartment how did the rent on this one comparable to others? How long was the previous tenant in that apartment?
And sometimes people stay literally decades in the same apartment which means that the rent will be very low compared to the current market.
Apologies, I was still a bit angry after the meeting. I know greed has no nationality, creed or culture and I know it occurs in most places in the world. I also can see the plight of the normal Swiss as well, I know some of them, some are my friends here.