The mortgage reference interest rate in Switzerland has recently increased from 1.25% to 1.5%. This could potentially result in higher rental prices for tenants. Landlords now have the right to increase rents for existing rental agreements that were based on the previous reference rate. It is expected that a majority of landlords will take advantage of this opportunity to raise rents. However, it is important to note that not all rental agreements will be affected, as the increase is only applicable to agreements based on the previous reference rate. The exact timing of the rent increases will vary depending on individual landlords. When considering a rent increase, landlords must adhere to the formalities outlined in the rental law. Tenants who are concerned about a rent increase can seek guidance from the conciliation authority and review their rental agreements for any potential disputes.

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