Renovated flats and rent: what the LDTR requires ?
The LDTR (Loi sur les démolitions, transformations et rénovations de maisons d’habitation) sets out rules for residential leases in Geneva, Switzerland.
According to this law, rents must be calculated objectively and may not be excessive. Renovated flats are subject to the same rules as other housing.
The LDTR does not set a maximum rent, but establishes a number of criteria to determine whether the rent is fair and reasonable. The main criteria are the quality and condition of the dwelling, its geographical location, the living area, and the charges and incidental costs.
If the rent charged is considered excessive, the tenant can apply to the Lease and Rent Tribunal for a reduction in the rent. The tenant’s application will first be subject to an attempt at conciliation by the conciliation board for leases and rents. The conciliation board is a mediation body whose aim is to find an amicable agreement between the parties. If no agreement is reached, the tenant will be referred to the Lease and Rental Tribunal, which will be responsible for settling the dispute between the tenant and the landlord.
In conclusion, renovated flats in Switzerland are subject to the same rent rules as other housing. The rent must be calculated objectively and may not be excessive, according to the criteria established by the LDTR. If the rent is found to be excessive, the tenant may bring his case before the above-mentioned court.