Rent Change

A rent change is sometimes unavoidable. This is because the landlord wants to keep the rent in line with the market. As a landlord, you will also want to pass on increased costs to tenants, for example. However, a tenant will try to avoid a rent increase. A landlord, on the other hand, will want to avoid a rent reduction. Rent changes for business premises are regulated by law. If the parties cannot agree, the court can set a new rent.

What is a change in rent?

A rent modification or rent adjustment is a change in rent by the parties or by the court. The legal rules regarding rent changes differ based on the type of business premises. For office spaces (so-called 230a leases), in principle, freedom of contract applies. However, for medium-sized business premises (290-lease), strict rules apply from which it is not allowed to deviate to the detriment of the tenant.

When can the rent of a commercial space be adjusted?

If the lease of business premises is for a fixed term, the rent may be changed after the expiration of the agreed term. In all other cases, this can be done whenever at least five years have passed since the last rent determination. The rent that is adjusted is the bare rent. If costs of certain facilities are passed on to the tenant, the landlord may also demand an increase in these. In this situation, an interim rent adjustment is possible. Rent changes can be determined by the parties themselves. If this fails, they can request the court to fix the rent. In the blog about business premises rent review is explained exactly how this works.

Rent determination by court

Rent changes by the court may be made on claim of both tenant and landlord in a proceedings on the merits at the cantonal court. This claim is admissible only if a prior opinion has been prepared by an expert appointed by the parties. The court may also upon request of a party appoint an expert. This request counts as the beginning of the rent modification procedure. The court ultimately sets the rent. In doing so, he pays attention to the average of the rents of comparable business premises on site over the past five years.

Lawyer for rent changes

When parties do not agree on the rent change, they can go to court. The rental law attorney at Lexys Lawyers can tell you more about the change of rent of a business premises and how best to handle it in your situation.