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Swiss tenants protest rent control reform, fearing backdoor rent hikes
🇨🇭 Switzerland /Culture & Society

Swiss tenants protest rent control reform, fearing backdoor rent hikes

From Le Temps · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

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  • Swiss tenants are protesting a proposed reform of rent control regulations, fearing it will lead to unjustified rent increases.
  • Tenant associations criticize the reform as a way to benefit landlords and a democratic bypass, while landlords cite legal certainty.
  • The Federal Council's proposed changes aim to clarify how admissible returns are calculated for rental properties, a technical issue with significant housing cost implications.

Swiss tenants are voicing strong opposition to a partial revision of the ordinance on residential leases (OBLF), fearing it will become a backdoor for landlords to raise rents. The proposed changes, open for consultation until June 5, aim to clarify the calculation of admissible returns for rental properties. Tenant associations, like Asloca, decry the reform as a "gift to landlords" and a "democratic bypass."

A rent increase by devious means

— Tenant associationsDescribing the feared outcome of the proposed rent control reform.

Landlords, however, argue the reform is necessary to ensure legal certainty and consistent application of rent regulations. They point to recent Federal Court rulings and market realities as reasons for updating the existing framework. The core of the dispute lies in how to calculate the return on investment for property owners, a technicality that directly impacts the cost of housing for tenants.

A gift to landlords and a democratic bypass

— AslocaCriticizing the proposed revision of the ordinance on residential leases.

This technical debate is unfolding against a backdrop of persistent housing shortages and soaring market rents across Switzerland. The tenant associations believe the proposed adjustments will disproportionately benefit property owners, exacerbating affordability issues. They are concerned that the changes, while presented as clarifications, will ultimately circumvent tenant protections and lead to significant rent hikes, sparking fears of a new political battle over housing costs.

We are in favor of legal certainty

— Landlord representativesJustifying the need for the reform to ensure consistent application of rent regulations.
DistantNews Editorial

Originally published by Le Temps in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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