To find out whether they can ask for a reduction, most tenants watch the mortgage reference rate. But another, quieter change is on the way: the Federal Council wants to revise how the admissible yield of a rent is calculated, i.e. the threshold beyond which a rent is considered abusive. These are the rules that determine how high a landlord may set or raise a rent. On 25 February 2026 the Federal Council opened a consultation to partially revise the OBLF (the ordinance on residential and commercial leases); it closed on 5 June 2026.
What is this about, exactly?
Article 269 of the Code of Obligations prohibits abusive rents: a rent is abusive when the rented property gives the landlord an excessive yield. The problem is that neither the law nor the OBLF set out precisely the threshold beyond which that yield becomes excessive. This uncertainty forced conciliation authorities and courts to rely on constantly evolving case law. The revision aims to write these thresholds clearly into the ordinance.
Where does this reform come from?
It all started with the Engler motion (22.4448), filed in late 2022, asking the Federal Council to clarify by ordinance two sensitive points: how to calculate the admissible net yield, and how to define excessive yield. In the background, two reversals by the Federal Supreme Court shifted the benchmarks. In 2020 (ATF 147 III 14), the admissible yield margin on equity rose from 0.5 to 2 points above the reference rate, as long as it stays at or below 2%. In 2024, the Court confirmed, for the gross-yield method applied to recent buildings, that 3.5 points may be added to the reference rate (1.5% for maintenance and charges + 2% for equity).
What actually changes
The project does not overhaul the whole tenancy law: it clarifies the technical calculation rules. Three points stand out:
- A step system for higher rates. Today, as long as the reference rate is at or below 2%, the equity margin stays at 2 points. The project defines what happens above that: from 2.25%, the admissible margin would fall in steps of 0.25 point, down to just 0.5 point when the reference rate exceeds 5.75%. The aim: to avoid overly sharp rent increases when rates climb.
- Clarified definitions. The text frames the capitalisation rate (the rate applied to the investment), the economic life (amortisation) and how current maintenance costs are allocated.
- The maintenance vs. value-adding distinction. The ordinance clarifies what counts as ordinary maintenance and what is a value-adding investment (only the latter can, in simple terms, justify an increase), a frequent source of disputes.
What does not change (for now)
- The reference rate remains the pivot. It stands at 1.25% and stays there as long as the average of mortgage rates does not fall below 1.13% or rise above 1.37%.
- The three levers to adjust rent remain: a general market-based increase (about 0.5 to 1% per year), passing on 40% of inflation, and adjustment to the reference rate.
- The entry-into-force date is not yet known. Until then, current case law applies, and it should stay very close to what the project provides.
What you can do today
Tenant: check the reference rate in force when your rent was last set. If it was higher than 1.25% (for example 1.50% or 1.75%), you can probably already request a reduction, regardless of the reform. Our rent reduction calculator gives you a first estimate in seconds.
Landlord: document your works carefully, separating ordinary maintenance from value-adding investments. That is exactly what the new OBLF will seek to distinguish, and good documentation will secure any increases.
At NeoFidu, we support tenants and owners across French-speaking Switzerland: checking your right to a reduction, reviewing a rent increase, and handling the taxation of real estate. Contact us to review your situation.
General information as of the consultation that closed on 5 June 2026; the draft OBLF is not yet in force and its final content may change. This is not personalised legal advice.