Switzerland is very much a country of tenants: only around 36% of private households live in a home they own. For many people who move to Switzerland, renting an apartment or house is therefore not only the first housing option but often the only realistic one.

Swiss tenancy law provides tenants with a relatively high level of protection. However, most of these protections do not take effect automatically. Your rent will not be reduced simply because the reference interest rate has fallen. A verbal complaint about a defect may carry little legal weight, and missing a formal deadline can mean losing the right to challenge a landlord’s decision.

Knowing your rights is therefore only part of the equation. You also need to document problems, communicate in writing and pay close attention to deadlines.

The 1.25% reference rate: who may be entitled to a rent reduction?

One of the main factors used to adjust rent under an existing tenancy agreement is the mortgage reference interest rate, known in German as the hypothekarischer Referenzzinssatz. It is published quarterly by the Federal Housing Office, the Bundesamt für Wohnungswesen or BWO.

This should not be confused with the policy rate set by the Swiss National Bank. It is the mortgage reference rate that is used under tenancy law to calculate possible increases or reductions in net rent.

The rate has stood at 1.25% since 2 September 2025 and remained unchanged in June 2026. The next BWO announcement is scheduled for 1 September 2026.

If your current rent is still based on a higher reference rate, such as 1.50% or 1.75%, you may generally be entitled to request a review.

The rate on which your rent is based may be stated:

• in your tenancy agreement;
• in the most recent official notice changing your rent;
• in a calculation provided by your landlord or property management company.

If it is not shown in your documents, you can ask the landlord in writing which calculation factors were used to determine your current rent.

The reference rate normally applies to the net rent, meaning the rent before utilities and other ancillary costs. Charges for heating, water, building cleaning and other Nebenkosten do not automatically fall when the reference rate is reduced.

How much could your rent fall?

A reduction in the reference rate by 0.25 percentage points generally corresponds to a reduction of approximately 2.91% in net rent. If your rent is still based on a rate higher than 1.50%, the potential reduction may be greater.

However, tenants do not necessarily receive the full theoretical reduction. Landlords may offset certain legally permitted factors, including part of the increase in the cost of living and documented increases in property maintenance, operating and management costs.

The final calculation therefore depends on the individual tenancy agreement and any previous rent adjustments. In some cases, the reduction will be smaller, while in others the landlord’s permitted counterclaims may cancel it out entirely. The landlord must nevertheless explain the calculation, and the tenant is entitled to review and challenge it.

Different rules may apply to index-linked leases, stepped-rent agreements, subsidised housing and certain other categories of tenancy.

There is also a specific exception for genuinely luxurious apartments and single-family homes with at least six living rooms, excluding the kitchen. A high rent or large floor area alone is not enough for a property to qualify as luxurious in legal terms. Both the required number of rooms and an exceptionally high standard of comfort must be present.

How to request a rent reduction

A rent reduction is not granted automatically. The tenant must contact the landlord or property management company.

The safest approach is to send a registered letter containing:

• the address of the rented property;
• the current net rent;
• the reference rate on which the rent is based;
• a request for the rent to be recalculated using the current rate;
• a request for a written calculation;
• the date from which the reduction should apply.

The reduction will not usually take effect immediately after the letter is sent. It normally applies from the next possible contractual termination date, taking into account the notice period stated in the agreement. A reduction is also not automatically backdated for the period during which the tenant had not yet submitted a request.

The landlord has 30 days to respond. If the request is rejected, the calculation is unclear or no reply is received, the tenant may apply to the tenancy conciliation authority, known as the Schlichtungsbehörde.

After a rejection, or once the 30-day response period has expired, the tenant has a further 30 days to submit the application. In total, the case should be brought before the conciliation authority no later than 60 days after the original request was sent to the landlord.

Until a reduction has been formally agreed or decided, the tenant must continue paying the full existing rent.

When may a landlord increase the rent?

A landlord may also have lawful grounds to increase the rent. These may include a rise in the reference interest rate, inflation, documented increases in property costs or renovation work that has significantly improved the property or increased its value.

An ordinary letter, email or revised invoice is not sufficient. The landlord must use the official form approved for the relevant canton and clearly state the reasons for the increase and how it was calculated.

The official form must reach the tenant at least ten days before the contractual notice period begins. For example, if the agreement can be terminated with three months’ notice, the rent increase notice must normally be received at least three months and ten days before the relevant termination date.

If the form arrives too late, the increase will generally be postponed until the next possible contractual date.

A rent increase may be invalid if:

• the official form was not used;
• the reasons were not given or are unclear;
• the landlord threatens to terminate the tenancy at the same time as announcing the increase.

Even when the formal requirements have been met, the calculation itself may still be challenged. The tenant has 30 days from receiving the notice to apply to the conciliation authority. If this deadline is missed, the increase may take effect even if parts of the calculation appear questionable.

Challenging the initial rent

A separate legal mechanism applies to people who have only recently moved into a property.

The initial rent may be challenged directly before the conciliation authority within 30 days of the start of the tenancy and handover of the property. Writing only to the landlord does not preserve this deadline.

At least one of the following conditions must normally be present:

• the tenant was compelled to accept the agreement because of personal or family circumstances;
• the tenant’s choice was severely limited by conditions on the local housing market;
• the landlord increased the net rent by at least 10% compared with the previous tenancy for the same property.

An increase of 10% does not automatically mean that the new rent is unlawful. The tenant must also explain why the starting rent is abusive or unjustifiably high.

In cantons where landlords must disclose the initial rent on an official form, the document will also show what the previous tenant paid. Where no such form is required, the new tenant may still request information about the previous rent from the landlord in writing.

Noise and quiet hours: rules vary by municipality

Tenants are required to show consideration for neighbours and other residents in the building. Additional rules are often set out in the building regulations or house rules, known as the Hausordnung.

There is no single nationwide timetable for quiet hours in Switzerland. Specific restrictions are set by cantons and municipalities, and building rules may impose additional requirements.

In many areas, night-time quiet hours run approximately from 10 p.m. to 6 a.m., with a midday rest period from around noon to 1 p.m. Stricter restrictions often apply on Sundays and public holidays. These times are not universal, however, so tenants should check their municipality’s rules and the documents attached to their tenancy agreement.

If neighbours regularly cause excessive noise, the first step is usually a calm conversation. People are not always aware of how clearly sound carries into nearby apartments.

If the problem continues, the tenant should contact the landlord or property management company in writing. It is useful to keep a noise log recording:

• the date;
• the start and end time;
• the type of noise;
• how frequently it occurs;
• any witnesses.

In serious situations, the police may be contacted. For non-urgent cases, it is better to use the ordinary number of the local police. The emergency number 117 should be reserved for situations requiring immediate intervention.

Not every disturbing sound qualifies as a legal defect. Normal noises associated with apartment living, such as footsteps, children’s voices, water in pipes or occasional household activity, often have to be accepted as part of living in a shared building.

Severe, repeated or prolonged noise may be treated differently. A typical example is major construction work in or directly next to the building.

Where the disturbance is sufficiently intense and long-lasting, it may be considered a defect in the rented property and may justify a proportionate rent reduction. The amount depends on the intensity and duration of the noise, the time of day, the rooms affected and the extent to which normal use of the property is restricted.

Defects in the property: what does the tenant pay for?

The landlord must hand over the property in a condition fit for its intended use and maintain it in that condition throughout the tenancy.

Defects are commonly divided into minor, moderate and serious categories.

Minor defects

Tenants are generally responsible for minor routine maintenance that can be carried out easily and safely without specialist knowledge.

Examples may include replacing a light bulb, changing an accessible seal or fuse, cleaning a blocked siphon or carrying out another simple task that does not require a professional.

The key issue is not only the cost but whether the tenant can reasonably perform the work without specialist tools or expertise. If a qualified tradesperson is needed, the repair will usually no longer count as minor maintenance.

In practice, a figure of around CHF 100–150 per individual repair is sometimes used as a guideline. However, this is not a fixed nationwide limit. A tenancy agreement cannot automatically make the tenant responsible for every repair simply because the cost falls below a certain amount.

Moderate defects

A moderate defect does not make the property uninhabitable, but it noticeably reduces its function or comfort.

Examples include a broken refrigerator, oven, heating system, window, blind or plumbing fixture.

Unless the tenant caused the damage deliberately or through negligence, the landlord is generally responsible for arranging and paying for the repair.

Serious defects

A serious defect makes the property unfit for occupation or substantially restricts its use.

Examples may include major flooding, prolonged loss of heating during winter, a dangerous electrical installation or another condition that threatens health or safety.

In such circumstances, the tenant may be entitled not only to repairs and a rent reduction but, in certain cases, to terminate the tenancy with immediate effect. Ending the agreement without first obtaining legal advice can nevertheless be risky.

The handover report is crucial when moving out

When taking possession of a property, tenants should inspect it carefully and make sure that all existing damage is recorded in the handover report.

It is advisable to photograph:

• scratches on floors and doors;
• stains or damage to walls;
• cracks;
• faulty sockets, blinds and appliances;
• signs of damp or mould;
• damage in the bathroom, kitchen, balcony, cellar or storage area.

The photographs should be kept with the tenancy agreement and handover report, preferably in a way that makes the date identifiable.

Some problems cannot be detected during a brief inspection. These may include a malfunctioning dishwasher, inadequate heating or a leak that appears only during heavy rain.

Many tenancy agreements allow a short period, often around 10–30 days, for additional defects to be reported. There is no single statutory deadline that applies to every tenancy, so the agreement should be checked carefully and any problem reported as soon as it is discovered.

Reporting a defect and requesting a rent reduction

If a defect arises during the tenancy, the tenant must notify the landlord or property management company. For a serious, persistent or unresolved issue, a registered letter provides the strongest evidence.

The written notice, often referred to as a Mängelrüge, should include:

• a precise description of the problem;
• the date it was discovered;
• how it affects use of the property;
• photographs or video evidence;
• details of any previous reports;
• a reasonable deadline for the problem to be resolved;
• a request for written confirmation of the planned repair.

The deadline should reflect the urgency of the situation. A lack of heating in winter, a water leak or another safety risk requires a much faster response than a broken cupboard handle or blind.

Tenants should not arrange an expensive repair themselves and then simply send the bill to the landlord. A repair may only be organised at the landlord’s expense under certain conditions, including proper notification and expiry of the deadline without action.

If a defect significantly restricts use of the property, the tenant may request a proportionate rent reduction.

The right to a reduction begins when the landlord knew, or should have known, about the problem and continues until the defect has been remedied. The tenant does not have to prove that the landlord caused the defect. What matters is that the tenant is not receiving the full use of the property for which the full rent is being paid.

The date of the written notice is therefore important because it helps establish when the landlord was formally informed.

The amount of the reduction depends on the circumstances. A broken oven, the loss of use of one room, severe mould or months of construction noise will each affect the value and usability of the property differently.

Tenants must not decide on a percentage themselves and simply pay less. If the parties cannot agree, the amount must be determined through conciliation or court proceedings.

Depositing rent with a cantonal authority

If a landlord fails to remedy a serious defect, the law may allow the tenant to deposit the rent with an authority designated by the canton rather than paying it directly to the landlord.

Rent deposited correctly in this way is legally treated as paid. However, the procedure is subject to strict formal requirements.

The tenant must first notify the landlord in writing and:

1. request that the defect be remedied;
2. set a reasonable deadline;
3. warn that future rent payments will be deposited if no action is taken.

If the defect is not resolved, the rent is transferred to the institution designated by the canton. Leaving the money in a personal bank account or simply stopping payment is not sufficient.

The tenant must apply to the conciliation authority within 30 days of the due date of the first deposited rent payment, requesting repairs, a rent reduction or another form of resolution.

If this deadline is missed, the deposited funds may be released to the landlord.

Because the procedure is technical, tenants should seek advice from the conciliation authority, the Swiss Tenants’ Association or a lawyer before depositing rent. Simply withholding rent creates arrears and may give the landlord grounds to terminate the tenancy early.

Can the landlord terminate the tenancy because of a complaint?

Fear of losing a home often prevents tenants from asserting legitimate rights. However, asking for a rent reduction, reporting a defect or requesting a review of a calculation is not a breach of the tenancy agreement.

A termination intended to punish a tenant for exercising their rights in good faith may be challenged as abusive.

Additional protection applies while conciliation or court proceedings are ongoing and, in certain circumstances, for up to three years after the dispute has ended or a settlement has been reached.

This does not mean that a landlord can never terminate a tenancy. Swiss law generally recognises freedom to terminate, and there are several lawful reasons for doing so. However, the tenant may request an explanation and challenge a termination that appears to be retaliation for a legitimate claim.

A termination notice must be challenged before the conciliation authority within 30 days of receipt. Once this period has expired, the right to contest it is lost.

The conciliation authority: where to take a tenancy dispute

Tenancy conciliation authorities operate in every canton, although their names, addresses and territorial structures vary.

Tenants may apply to the authority when, for example:

• a landlord refuses a rent reduction;
• a rent increase appears unjustified;
• a defect is not being remedied;
• the parties cannot agree on the amount of a rent reduction;
• the initial rent is being challenged;
• a termination notice appears questionable or abusive.

The authority’s role is to help the parties reach a settlement without a full court case. Conciliation proceedings involving residential and commercial leases are generally free of court fees, and a lawyer is not required to submit an application.

Relevant documents should be included, such as:

• the tenancy agreement;
• official forms;
• correspondence;
• photographs;
• a noise log;
• registered-post receipts;
• invoices and calculations.

The competent authority can be found on the website of the relevant canton or municipality.

What to check now

Even if there is no current dispute with the landlord, it is worth checking:

• how much of the monthly payment is net rent and how much consists of ancillary costs;
• which reference rate is stated in the agreement or latest rent notice;
• whether all existing damage was recorded in the handover report;
• where correspondence, photographs and postal receipts are stored;
• which quiet-hour rules apply in the municipality;
• which conciliation authority is responsible for the address.

Under Swiss tenancy law, a calm written request is not an act of confrontation. It is the normal way to protect your interests. Accurate documentation, strict attention to deadlines and a clear sequence of steps are often what determine whether a tenant’s rights can be enforced.

Sources

• Federal Housing Office (BWO) — Mortgage reference interest rate (https://www.bwo.admin.ch/de/referenzzinssatz)
• Admin.ch — Media release: reference interest rate remains at 1.25 percent (https://www.admin.ch/de/newnsb/R0jrFaoqLAtgPEOHaRvTI)
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