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Landlord overcharged tenant 230,000 francs

A Geneva landlord has been ordered to pay back 230,000 francs ($246.000) in rent to a tenant who was over-charged for a renovated apartment over a period going back to November 2005.

Landlord overcharged tenant 230,000 francs
Photo: Wikimedia Commons

The case was reported by François Zutter, a lawyer for Asloca Romande, the tenant’s rights association for French-speaking Switzerland, in the association’s latest monthly journal.

Switzerland’s highest court recently ordered the landlord to pay the tenant 2,583 francs a month retroactively to November 1st 2005 after finding that the four-room apartment in the city’s banking district was renovated  without cantonal approval, Zutter reported.

The landlord violated Geneva laws governing renovations and demolitions, the lawyer said.

These require landlords to seek a permit and authorize the canton to set rent levels for three to five years.

In the Geneva case, the landlord renovated the apartment without approval and then charged a monthly rent of 3,800 francs, well above the legal level of 1,216 francs set by the law, the Asloca lawyer noted.

This amount should have been applied for three years, Zutter said.

After that, under federal law, the landlord was required to notify the tenant of an increase according to a formula based on the existing rent.

Because the landlord did not do this the rent charged for the period subsequent to the three-year period following renovations was not valid above the 1,216-franc rate.

The apartment had rented for 1,019 francs a month before the renovations.

Asloca noted that other Swiss cantons, such as Vaud, have laws like Geneva's that require landlords to seek approval for any renovations to an apartment.

The supreme court ruled that it would be unfair to give special treatment to landlords who flouted the law on apartment renovations over those who respected the regulations. 

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APARTMENTS

What does the coronavirus mean for Switzerland’s property market?

Housing in Switzerland has become more expensive during the coronavirus pandemic, a new study shows.

What does the coronavirus mean for Switzerland's property market?
Housing is getting more expensive in many parts of Switzerland. Photo by AFP

While many experts feared that real estate market in Switzerland would collapse during the health crisis, the opposite has happened: rents, as well as purchase prices for houses and apartments have risen.

Figures released by ImmoScout24 Swiss Real Estate Offer Index on Tuesday show that at the end of 2020, single-family home prices were 5.6 percent above their level at the start of the year. This increase is virtually identical (+ 5.5 percent) for apartments.

The upward trend is also clear in rental market, where rents have increased by an average of 1.1 percent nationwide.

Both owned and rented housing is most expensive in the Lake Geneva region. Prices there increased by 2.5 percent by the end of 2020.

This finding is not surprising, as Geneva is an expensive city with a high cost of living, where it is unlikely, or at least difficult, to find cheap rentals in any of the decent neighbourhoods. 

Also, the vacancy rate is usually quite low, which drives the rents up.

For instance, an average monthly rent for 3.5-room flat in Geneva, which comprises a living room, kitchen, bathroom and two bedrooms, is 2,680 francs — the highest in Switzerland. 

In the greater Zurich area, another expensive region, prices have increased by 1.2 percent.

READ MORE: Cost of living in Switzerland: How to save money if you live in Zurich 

Price hikes were also noted in eastern Switzerland (1.3 percent), the northwestern regions (0.8 percent), as well as in central parts of the country (0.3 percent).

On the other hand, rents stagnated in the so-called Swiss Plateau, the area which includes cantons of Aargau, Solothurn, Bern and Fribourg.

In Ticino, they fell by 2.6 percent.

There is, however, good news for those who want to buy a property in 2021: mortgage rates remain low.

It is possible to get a 10-year fixed rate mortgage from 0.61 percent, and a 5-year fixed rate at 0.54 percent, according to Comparis, Switzerland’s price comparison service.

READ MORE: Switzerland's strangest taxes – and what happens if you don't pay them 
 

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