Abusive Initial Rent: How to Contest It

Right to Contest (art. 270 para. 1 CO)

The tenant may contest the initial rent and request reduction even after signing the lease.

Cumulative Conditions

1. The tenant was compelled to conclude the lease by personal/family necessity or local market conditions (housing shortage)
2. The rent is significantly higher than the previous rent for the same property

ATF 136 III 82: an increase of more than 10% compared to the previous rent is a serious indication of abusive rent.

Knowledge of Previous Rent

Some cantons (Vaud, Geneva) require disclosure of the previous tenant's rent on the official form. Otherwise, the tenant may inquire with the former tenant or landlord.

Contestation Deadline

30 days after key handover (art. 270 para. 1 CO). Strict and non-extendable. File with the conciliation authority.

Assessment Criteria

Net Return Method (art. 269 CO)

Permissible return: 0.5% above the reference mortgage rate (ATF 123 III 171).

Comparative Rents (art. 269a let. a CO)

Comparison with similar properties. At least five comparable units required (ATF 123 III 317).

Effect

If the court finds the rent abusive, it sets the permissible rent. Reduction applies retroactively to key handover. The landlord must reimburse the excess.

During proceedings, the tenant must continue paying the agreed rent.

Practical Obstacles

In cantons without mandatory previous rent disclosure, contestation remains difficult. The condition of "necessity" (housing shortage) may be hard to prove in some regions.