“The Rise of Arbitration Proceedings: Exploring Landlords’ Tactics to Increase Rents and Tenants’ Rights”

Mr. Sommaruga, as President of the Tenants’ Association, how do you interpret the increase in arbitration proceedings?
An important cause is certainly that the landlords are tightening the screw. They try to evict tenants


Deadlines, form requirements & Co.
Is the termination of the rented apartment valid?

who live in rather cheap apartments. In this way, they can increase the rent and their returns even more when re-letting. That’s amazing. Many rents are already abusively high.

When is a rent abusive?
According to the Federal Supreme Court, owners are allowed to achieve returns by renting out apartments that are a maximum of 2 percent higher than the reference interest rate. If the yield is higher, it is considered abusive. With the current reference interest rate of 1.25 percent, returns of a maximum of 3.25 percent would be allowed. However, various studies show that the returns actually achieved are much higher.