Do I have to request the reduction myself?
Yes, the reduction is not automatic. It is up to you (as the tenant) to take the necessary steps.
Now may be the right time to ask for a rent reduction, and we'll explain why
On September 2, 2025, the Federal Housing Office (FHO) announced a decrease in the reference mortgage rate from 1.50% to 1.25%. This decision directly affects hundreds of thousands of tenants in Switzerland.
The reference rate is used to adjust rents, so a decrease in the rate may justify a reduction in your rent, provided that it is based on a rate higher than the current rate.
But how do you know if you are affected? What are your rights? And above all, how can you claim this reduction? We explain everything in detail.
What is the reference mortgage rate?
Introduced in 2008, the reference mortgage rate is calculated based on the average rate of mortgage loans granted by banks. It is published quarterly by the OFL and serves as a national benchmark for rent adjustments.
- An increase of 0.25 points allows landlords to increase rent by 3%.
- A decrease of 0.25 points entitles tenants to request a reduction of 2.91%.
With the recent decrease of 0.25 points (from 1.50% to 1.25%), affected tenants can request a reduction of approximately 2.91%.
Are you affected by this decline?
Your entitlement depends on the reference rate used to calculate your current rent, which is usually stated in your lease agreement. However, this is not always the rate specified in your initial agreement!
It may be:
- the rate in effect at the time of the last increase notified by your landlord,
- the rate applied after a previously agreed reduction,
- or the rate set by a court ruling or arbitration in the event of a dispute.
To check quickly, use the ASLOCA calculator.
When and how to request a reduction?
Deadlines
The reduction must be requested before the contractual expiry date of your lease, in accordance with the required notice period (often 3 or 4 months).
Example: if your lease renews every May 1 with 3 months' notice, your landlord must receive your request by January 31 at the latest for the reduction to apply from May 1.
The procedure
- Write a letter of request addressed to the landlord or property management company.
- Sign it with all the leaseholders.
- Clearly state that you are requesting a reduction due to the decrease in the reference mortgage rate.
- Send your letter by registered mail.
You do not need to mention the exact amount. The important thing is to comply with the form and deadlines.
What can the lessor say in response?
The landlord has 30 days to respond:
- If they agree, the reduction will be applied to the next contractual term.
- If they refuse or remain silent, you then have 30 days to refer the matter to the Conciliation Commission.
Possible arguments from the lessor
The landlord may invoke certain grounds for limiting or refusing the reduction:
- the increase in the cost of living (they may pass on 40% of the increase in the Swiss consumer price index),
- the increase in operating or maintenance costs, provided they can prove it,
- renovation work that has added value to the property.
In practice, these justifications require solid evidence and are sometimes difficult to establish.
Frequently asked questions
Can my landlord terminate my lease if I ask for a rent reduction?
No, a landlord does not have the right to terminate a lease simply because the tenant asserts their rights. Such termination would be considered wrongful termination and can be challenged before the Conciliation Commission. The law therefore protects tenants from potential reprisals when they request a legitimate reduction.
Can I request the reduction even if I have already received a discount?
Yes, as long as your rent is still based on a rate higher than the current rate.
What happens if I miss the deadline?
You will have to wait until the next
What if I want to challenge the landlord's refusal?
You can file a claim with your district's Conciliation Commission free of charge.
What is the procedure before the Conciliation Commission?
If the landlord refuses your request or does not respond within 30 days, you can refer the matter to the Conciliation Commission in your district. The request must be submitted within the deadline, by registered mail or directly to the prefecture.
It must contain:
- your full names and addresses,
- your original signatures (all tenants on the lease),
- the lease agreement,
- the latest notification of increase/decrease,
- the request sent to the landlord and their response, if any,
- and an extract from the property's land registry.
It is important to keep a receipt for the mailing. The procedure is free of charge and is a mandatory step before any legal action can be taken.
In summary
- The reference mortgage rate has risen to 1.25%.
- This allows many tenants to request a rent reduction.
- The process is simple: a registered letter, sent within the deadline, is sufficient to assert your rights.
- In the event of refusal, the Conciliation Commission can intervene.
Check now whether you are affected using the ASLOCA calculator.