Inflation adjustment

Landlords can adjust the rent to the inflation (relative criteria). If the inflation passed on by the landlord to the tenant exceeds the permissible value, the resulting rent is unfair.

The landlord is entitled to compensation for inflation on the risk-bearing capital (Art. 269a lit. e CO). The risk-bearing capital is the invested equity capital of the landlord.

The adjustment for inflation is calculated on the basis of the national consumer price index. A maximum of 40% of the inflation may be passed on to the tenants (art. 16 WMWG); this percentage is based on the assumption that 40% of the rental property is financed with equity and 60% with mortgages.



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