We own a home in the Vevey-Montreux region and just learned that our current tenants, who have been in the home for 3 years, will be moving this summer. I'm in the process of trying to determine a fair rental price and was wondering if, aside from looking at similar properties on the market, there is a way to calculate rents in Switzerland. We have an agency who manages the property but would also like to educate ourselves about current prices before talking with them because they haven't given us the best advice in the past.

Advice will be greatly appreciated. Thanks!

I am wondering if "aside from looking at similar properties on the market" there is a way to calculate rents anywhere.

Maybe not. We've always been lucky with the agencies that we've dealt with in the States that seem to have a fairly accurate idea of the market rates, whereas in Switzerland we haven't. It all seems a bit more vague here. I guess that I was naively hoping that someone could give me an equation or something.

Sq meters + numbers of bedrooms and bathrooms + view = ? Sfr.

I just remembered that in the States one agent told us that the monthly rental price for houses was generally 1% of the value of the home.

there are many properties on www.homegate.ch

Maybe you can find something similar to yours?

Perhaps not a direct reply to your question, but keep in mind there are some strict rules on raising rents here. Perhaps good to check the local laws on renting, differs by Canton I think. Thus, even if the going rate for your apt. is say 4000 chf today, if previous rent was 1500 chf, you probably could not raise it to that, unless major renovations, etc.; as the increase cannot be more than X % or Y gross.

In Basel there's an authority that you can appeal to review your rent if you are in disagreement with the landlord (sorry, no idea what they are called).

I always assumed that there would be a similar set up across all cantons. If so, then they would seem a good second step after comparing properties on the open market.

When we bought our flat around 3 years ago (5.5 rooms, 140m2, top floor with great views and 100m2 terrace, own washing machine/dryer etc.) which we bought explicitly to rent out, our calculation went something like this:
1) how much of our own money did we have to invest? (270K)
2) leaves how much on which we have to pay interest for mortgage?
3) which type(s) of mortgage do we want? (fixed, variable? costs of each? risks of each?)
4) location of the flat - desirable/not desirable? (transport, schools, shops, views, traffic etc. etc.) - how much can we charge?
5) within the next 2 years we will have to pay anually into a "renewal fund" for the block of flats to cover future renovation costs. That money will have to be in place then out of the rent we earn now.

Based on those considerations we calculated an annual rental sum of X Francs. We are now getting a small return on the money invested (with the emphasis on small), the mortgage payments can be made on time, our tenants are happy with their rent and we can put money aside to make those renewal payments when they fall due. Our return will be if and when we sell the flat say in 10 years.

Möpp, thanks for the very helpful information. Your comment about the small return on the money invested made me laugh...because it's so true. In spite of the seemingly high rental prices in Switzerland, you really don't make much money owning property here. As you said, it only pays off if you've owned the property for some time when/if you sell it. That's why I was surprised when we thought about renting a house in the States and were told that the monthly rental price in that town was typically 1% of the value of the house. That would really make the rental prices in Switzerland prohibitive!

Thanks again for your input.

Yes, there are some countries in Europe that will limit you drastically in how much rent you are allowed to ask (Austria and Germany for sure). Don't think this applies to CH however...