Switzerland Tenants Sue Landlords Over High Rents

The Federal Housing Office (BWO) has recently released new data indicating a significant increase in the number of tenants taking their landlords to court over excessive rents in Switzerland. This surge in official complaints comes after a year marked by continued rises in the cost of renting residential properties across the country.

According to the latest figures, there were 25,544 court arbitration proceedings related to renting or leasing property in Switzerland between June and December 2023, representing a substantial 45.8 percent increase compared to the same period in the previous year. The first half of 2023 also saw a 42.2 percent rise in housing court cases. Overall, a total of 43,063 housing-related court cases were initiated in 2023, marking an 80 percent increase from the previous year, with 13,585 cases still pending by the end of the year.

The data reveals that 20 Swiss cantons experienced a rise in housing court cases in 2023, with Canton Fribourg witnessing a significant 141.3 percent increase. Notably, over a quarter of all housing disputes brought to court were heard in Canton Zurich. The majority of housing disputes (61.4 percent) were resolved through out-of-court settlements, recognition, or withdrawal of legal action, while 10.1 percent resulted in lawsuits due to no agreement being reached, and 23.4 percent were resolved through non-appearance, inaction, or withdrawal.

Unfair rent increases emerged as the most common housing dispute in 2023, accounting for 36.3 percent of all cases. The courts handled 25,544 cases related to unfairly high rents, marking a 56 percent increase from the previous year. Disputes over "ordinary contract terminations" regarding rental agreements followed at 9.8 percent.

The BWO suggested that these trends may be linked to the mortgage reference interest rate increases in June and December 2023, allowing landlords to raise rents by up to 6 percent for approximately half of tenants in Switzerland. Additionally, a recent report by UBS revealed a 5 percent increase in the average asking price for rental properties last year.

While 90.5 percent of rent increase disputes taken to court were resolved through amicable agreements with landlords, the legal process could still impose mental and financial stress on tenants. It is worth noting that tenants' associations in each of the 26 Swiss cantons may cover legal costs for association members in certain cases, subject to a 60-day membership requirement.

The rise in housing court cases in Switzerland reflects the challenges faced by tenants in a competitive rental market, with rent increases being a primary point of contention. Despite efforts to reach amicable resolutions, legal action can still pose difficulties for renters seeking fair treatment from landlords.