Lower Your Rent: 1.25% Reference Rate, Watch the Deadlines
Reference rate 1.25%: if your rent is based on 1.50% or more, you can ask for less. We show your entitlement, the deadlines and the steps.
The mortgage reference interest rate has been 1.25% since 2 September 2025. Nothing happens on its own: you must send your landlord a letter and meet a deadline.
Reference rate
1.25%
As of 1.9.2026, unchanged
Entitlement from base rate
1.50%
or higher, in your rental agreement
Arrival deadline
31.12.
for a 31.3.2027 termination date, 3 months' notice
Are you entitled?
According to the Swiss Tenants' Association (Mieterverband), the reference rate at signing (not move-in) or at the last rent adjustment counts. You'll find this base rate in your rental agreement or last rent adjustment notice.
Entitlement likely
- Base rate 1.50% or higher
- Signed 2.6.2023 to 1.9.2025
- Rent increase due to reference rate in 2023 or 2024
Entitlement unlikely
- Base rate 1.25%
- Graduated, indexed or turnover-based rent: check first
- Subsidised or cooperative housing: check rules
- Fixed-term agreement (usually, according to Beobachter)
Rule of thumb:
| Signed | Base rate | Reduction up to |
|---|---|---|
| from 2.9.2025 | 1.25% | none |
| 4.3.–1.9.2025 | 1.50% | 2.91% |
| 2.12.2023–3.3.2025 | 1.75% | 5.66% |
| 2.6.–1.12.2023 | 1.50% | 2.91% |
| 3.3.2020–1.6.2023* | 1.25% | none |
| before 3.3.2020 | 1.50% or higher | possible |
* Without a later reference-rate increase. Not an official list; boundary dates may be one day off. Percentages before offsetting.
How much do you save?
On CHF 2'000 net rent, a 1.50% base rate means up to around CHF 58 less per month, and 1.75% up to around CHF 113.
Your rent reduction check
Up to CHF 113 per month
That is up to CHF 1'358 per year: net rent CHF 2'000 × 5.66%. Before the landlord offsets inflation and costs.
Rough guide, not legal advice. The base rate is stated in your rental agreement, in the last rent adjustment notice or in the initial-rent form. Service charges do not count.
When must your letter arrive?
The reduction applies only from the next termination date, not retroactively. Your letter (the rent reduction request) must reach your landlord no later than the last day before the notice period starts. The postmark doesn't count. Example: quarterly termination dates, 3 months' notice.
- Now
Find base rate and date in your agreement
- by 4.12.
Our recommendation: send the letter
Registered letter, preferably in November.
- 31.12.
Arrival deadline
Offices often close between Christmas and New Year.
- 1.4.2027
New rent applies
If your termination date is 31.3.2027.
Tip
Don't wait for the federal rate announcement on 1 December: you are entitled today. If possible, send the letter in October or November, by 4 December at the latest.
Note
Landlords and property managers handle deadlines differently. 31 December is the last day of receipt for the 31 March 2027 date (with 3 months’ notice), but do not count on leniency if your letter arrives later. Check the termination date and notice period in your lease, build in a buffer and keep proof of delivery (registered letter). If you are unsure, ask in writing and get advice, see “Where can I get help?” below.
| Your termination date | Arrives by | New rent from |
|---|---|---|
| 31.12.2026 | 30.9.2026 | missed |
| 28.2.2027 (monthly) | 30.11.2026 | 1.3.2027 |
| 31.3.2027 | 31.12.2026 | 1.4.2027 |
| 30.6.2027 | 31.3.2027 | 1.7.2027 |
| 30.9.2027 | 30.6.2027 | 1.10.2027 |
Based on 3 months' notice. Dates and notice period are set in your rental agreement, otherwise local custom applies. Longer notice moves the cut-off earlier.
What does a missed termination date cost?
3 months too late
up to CHF 175
forgone reduction, quarterly dates
6 months too late
up to CHF 349
with a big gap, e.g. 30.9. to 31.3.
Example: rent CHF 2'000, base rate 1.50%. Gross forgone reduction, before offsetting.
Your letter stays valid but only takes effect from the next termination date. If your agreement only has March, June and September dates, a missed September date costs up to 6 months of lower rent.
What can your landlord offset?
Caution
The percentages are gross entitlements; no amount is guaranteed. Your landlord may offset inflation (usually up to 40% of it), proven cost increases, additional services and a rent reserve (stated in the agreement or last adjustment).
Swiss Homeowners' Association (HEV)
- Your letter can even trigger an increase
- Cost-increase flat rates are customary by region
Swiss Tenants' Association
- The reduction is a right: claim it
- Cost-increase flat rates are not allowed
Can your landlord give you notice?
Contestable
If your landlord gives notice because you claim your entitlement, you can challenge it at the conciliation authority within 30 days of receipt. There is no guarantee: you must prove the connection.
How do you send the letter?
Find your base rate
Look it up in your rental agreement or last rent adjustment notice.
Check the percentages
Use the rent reduction check. Without entitlement, better not to write (risk: increase).
Calculate the date
Termination date minus notice period (usually 3 months) is the arrival deadline. Dates are in your agreement, otherwise local custom applies.
Send a registered letter
All tenants on the agreement must sign. State the date, 1.25% reference rate and your base rate. Ask for a reply within 30 days. Keep a copy.
If refused or ignored: conciliation
Contact the conciliation authority within 30 days. Miss the deadline and you start over, losing at least one date.
The 30 days run from the landlord's reply, even a partial yes. If there's no reply, file the conciliation request within 60 days of sending your letter to be safe. No court costs, but you pay for your own advice.
What's next for the reference rate?
This is about your entitlement, not a market trend: rents overall aren't falling across the board. If the rate rises one step, landlords may raise rents based on a lower rate by up to around 3%. The rate follows the average interest rate on all existing mortgages.
Forecasts, not guarantees. Economists (AWP, 1.9.2026) call a further cut very unlikely. First rise no earlier than end of 2027 (UBS, as of 20.8.2026), range up to 2028. Based on the figures, a rise is more likely than a cut.
Thinking of buying? Run the numbers in the Rent or Buy calculator or read Buy or Rent in Switzerland.
Frequently Asked Questions
Do I have to wait for the December announcement?
No. You are entitled today. Economists expect no change in December, but it's only certain after the announcement.
Does the reduction cover service charges?
No. The percentages only apply to the net rent. Service charges and advance payments aren't reduced.
Is email enough?
Better not. The authorities describe a written request, and an email or SMS is hard to prove. Send the letter by registered letter.
Where can I get help?
The Swiss Tenants' Association offers a free rent calculator, template letters and advice for members (a tenant-side service; both pages are in German). In a dispute, the cantonal conciliation authority where the apartment is located is responsible.
As of 12.10.2026. Main sources: Federal Office for Housing (BWO; rate, history, exceptions), Swiss Tenants' Association and HEV (practice). This is guidance, not legal or tax advice.