Yes and no, as I said, we got a letter informing us of the reduction. They don't have to tell you but if they are corrects, they will. In our case, they told us but had some extra costs on top of it which they most explained and justified to us, if they can't, we are entitle to the full amount of reduction.

This is when the Tenant group is so good to be a member of.

I'm not sure that the lovely Jot has been called a beacon before.... but I think she'll like it.

We had something similar. There is something in our contract which translates roughly to "the landlord has a reserve of 10% of the rent for reasonable profits" (Mit dem Anfangsmietzins wird eine Mietzinsreserve von 10% unter dem Titel des angemessenen Ertrags nicht ausgeschoepft (Art. 269 OR)). In the letter which we received, they said that this reserve can nullify any rent reduction claim!!! I have to admit that we didn't even take any notice of this clause when we signed the contract, nor did we realise its significance.

They also printed something about "Inflation adjustment of risk-bearing capital" (Teuerungsausgleich des risikotragenden Kapitals) which also offsets any reduction claim.Quite an intimidating justification on why we were not given a rent reduction!!

We have a similar restrictive clause in our rental agreement, thank relo' agents for picking that up

We've been in our place for nearly 3 years and when I put the details into the calculator on the MV website showed a healthy reduction, when I contacted the agents they politely reminded me of this clause, and said that they did a quick calc, and should I apply for the revision our rent os like to actually rise... ah well, work again tomorrow

This is when the tennant group comes so handy! Contact them, we are in this process ourself so I can't give any results yet.

My husband spread the word in his office and found out that many many foreigners didn't know about this at all. For years many didn't get a letter from their landlords and did get any rent reductions. But the good news is, when you find this out, you can ask to get your reductions (retrospective).

I'll keep my nasty opinion about their attitude towards tennants for myself, but all imagination are free to fly!

Does anyone know the link between the % of rate reduction and the reduction in the rent?

Where does the "upto 3% in their net rent" comes from?
Is a 25bps drop in rate always equivalent to a reduction of up to 3%?

On Friday, my landlord informed me that my rent was going down by 2.91% as of 1st April. I am trying to understand where this 2.91% comes from...

Also, with the rate change taking place on 02.12.2010 and my sending a letter on 04.12.2011, is 01.04.2011 the correct date?

I presume the three months rule also works in the case of a rate increase? hehehehe, why do I have the impression it does not...?

thanks
motus

I don't know exactly how the reduction is calculated (the original quote I used in the original post I took directly from the information I received from the Mieterverband), but this pdf (sorry, in German) has a table showing the % changes in the base rent for an increase in reference rate (Nebenkosten are not affected by the changes).

As previous posters have said, there are also other factors that a landlord can use to adjust the rent to their advantage. These factors are limited and include inflatation, improvements, and also comparison with similar properties in the local vicinity. The above pdf also has details of these permitted grounds for increase.

Each time I have applied for a rent decrease with our agency, they have added on these extra adjustments that have then swallowed up about half of the rent decrease due to the reference rate alone.

Yes the 3 month rule also applies for rent increases.

From the Mieterverband website:

There is an official form the notification informing you of the increase must take, detailing a breakdown of the reasons for the increase (how much is attributable to the reference rate %, inflatation, improvements, etc..). They must also adhere to the contractual notice periods, informing you of the rent increase at least 10 days before the start of the notice period, thereby giving you the opportunity to also give your notice in time and move out if you don't agree to the increase in rent.

I assume that this would probably be sent to you by registered post, so they can prove that you received it, in the same way that you must give your notice in writing by registered post.

I think I am very lucky cos the landlord is really a nice guy and most of the communication goes through emails and telephone calls. So no non-sense registered post etc..

I was just curious to understand the rules, but it seems he acted within the rules and in all honesty, getting 2.91% out of the 3% mentioned seems to be a good deal.

thanks a lot to all who took the time to reply.

best
Motus

I got mine approved ( paltry sum but a savings anyway ) last week starting from April ( basis = referenzzinssatz ).

Attached Files

	BriefEF.pdf (64.4 KB, 332 views)
	MietzinsverfügungEF.pdf (120.8 KB, 374 views)

CHF 12.50/month, jrspet -- you could prop up Starbucks' sales by two dozen latte macchiatos a year!

Over the last two years, I estimate that my rent has dropped by a couple of hundred francs per month in total, after applying for (and receiving) rental reductions every time the interest rate dropped. It's well worth it.

Or several 1st class tickets within Germany .. I consider being fortunate to have that apartment at that low rental rate already.

I have applied for a rent reduction (registered mail) but never got a reply from my landlord. Now the tenant's association advised me to go to court ('schlichtungsbehoerde'). The say it's not a big deal, it's free, and possibly the landlord will react by giving me the reduction before. I'm still a bit worried this will mess up my trouble-free relationship with my landlord. On the other hand, I probably should not worry about that as it's a big company that would defienetely not hesitate one second to raise my rent if the interest went up...Has anyone here gone all the way to the 'schlichtungsbehoerde'?

Eh, the rental agency of my apartment told me that I just started living in this apartment so they are not obliged to reduce the rent. I have not idea whether that's right or not.

I got mine reduced after applying for it on the 13th month ie February - perhaps one gets considered after staying for at least 12 months ?

As far as I'm aware, it all depends what the rate quoted in your contract is. If your contract states that your rent is calculated based on the (current) rate of 2.75%, then no you're not entitled to a reduction. But if it's based on 3% or higher, then you should be! (But beware - they are also entitled to add on certain other costs, which may negate part or all of the reduction!)

more info here (in German): http://www.mieterverband.ch/?id=2418

and here how to calculate if it's worth claiming a reduction: http://www.mieterverband.ch/?id=2430

Exactly. If the rate on your contract is higher than the current, prevailing rate, then you can apply for a reduction, no matter how little time you've spent in your apartment.

But be aware that some contracts are written to be independent of the hypothetical rate. You need to check the wording of your lease agreement.

Here is a rough translation of an article which is printed in the March issue of FRC magazine (consumer rights for Romandie)

Get your rent lowered by up to 8%

In December, the mortgage rate used for setting rental rates was reduced for the 3rd time since 2008, to 2.75%. Tenants can therefore expect a reduction of rental price. They have to write to their rental agency/owner to request a reduction for the next period of contractual rental. They can ask for advice to the ASLOCA (or equivalent in other parts of CH) to find out if their rent is eligible and how to proceed.

Are there similar optimistic news for canton of Aargau to be found anywhere

our rent has never gone down in six years.. however if we rented this apartment now, for sure it would cost a lot more. would we still be eligible, or is it pushing our luck?

see here for an ongoing thread on the same topic