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| *This means that your landlord believes that the rent for the flat is 10% under the average rent in your neighbourhood. It's a formal statement that he wishes to put up the rent in the next few months/year. If he does you have 30 day to dispute. He then would have to proof that his action is justified.*
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the burden of proof (of "undervaluation") lies fully on the landlords side, if he ever wants to exploit those 10%.

there are strict rules for him to do so.

he needs five objects (flats/houses) of comparison who:

1) ... are in the same neighbourhood.

2) ... have the same size.

3) ... are equal equipped.

4) ... are in the same condition.

5) ... are built in the same construction period.

if he fails to these five points on each of the five objects for verifiable comparison, he will never get the chance of the extra 10%.

Bundesgericht, Urteil vom 26. Oktober 2004:

"[...] Das Bundesgericht wies jedoch die Berufung mit der Begründung ab, dass diejenige Partei, die sich auf die Orts- und Quartierüblichkeit berufe, mindestens fünf vergleichbare Wohnungen vorzulegen habe, die in Bezug auf Lage, Grösse, Ausstattung, Zustand sowie Bauperiode im Wesentlichen die gleichen Merkmale aufweisen müssen wie die konkret zu beurteilende Mietwohnung. [..]"