Hi All,
Reviving the thread from rent reductions, the Federal Housing Office (BWO) cut the reference interest rate (Hypothekarischer Referenzzinssatz ) from 1,75 to 1,5 percent . Meaning you can apply for a rent reduction. the procedure is explained in the forum.
howcome topic is so quiet here? is everybody aware or this?
Hello.
When you signed the rental contract there should a paragraph in there telling:
the reference interest rate (Hypothekarischer Referenzzinssatz) at the contracting time is ___ %.
So, look for this in you contract before starting calculations.
I verified once my rental contract and it’s 1.25 or 1.5%, don’t remember exactly. So, no much to do.
My landlord does this automatically, with some delay. I expect to pay less as from June or so.
So does mine.
But when they put up the rent last time, they also put up the reference interest rate to 1.5% (!!). I remember I found that cheeky then but as Axa says, not much to do.
I checked my contract, it’s 1.5%.
I did not request a reduction when it was 1.25%, landlord did not request an increase when it was 1.75%. All good.
At each such request to “reduce” something, there are also 2 other points where landlords increase the rent, so in the end it saves 10/20chf per month, but the moment the reference rate will increase again, they will calculate +100 chf for example, which they wouldn’t be able to do if you didn’t change reference rate before. So depends on landlord practices and estimation “how long low rate will last” if it is worth at all to do.
but actually what’s the formula? How much my X rent + Y utility costs will decrease with the 0.25% reference reduction?
About 3% of rent. No impact on utilities.
The Mieterverband will do (online) the calculation for you and prepare the letter; not sure if you have to be a member but it is worth joining anyway. I just sent my letter away requesting a decrease. It is very standard and should have no effect on future increases - the admin had no qualms about upsetting us tenants with the last round of rent increases - renovations (required or not) are due this year and will almost certainly not come for free.
With a private landlord I think you have to make your own decision as to the best policy.
There is a calculator in the link I shared.