In the latest edition of le Journal de l’Immobilier, Borel & Barbey partner Patrick Blaser takes the headline with his article discussing the recent decision (ATF 4A_75/2022 dated 30 July 2024) on building renovation work and its support by the Swiss Supreme Court.
The Federal Court has indeed established a new precedent concerning rent increases when linked to significant renovation work carried out by a landlord on their rental property.
It follows that a landlord who has undertaken substantial renovation work on their building is now permitted to increase rents by factoring in, as part of their return calculation, a mortgage rate 0.5% to 2% higher than the reference mortgage rate when the latter is less than or equal to 2%.
