Revision of the Ordinance on the Lease and Usufructuary Lease of Residential and Business Premises (OLRB)

The Swiss Federal Council revised on 28 November 2007 the Ordinance on the Lease and the Usufructuary Lease of Residential and Business Premises dated 9 May 1990 (OLRB). The revision came into effect on 1 January 2008. This Newsletter sets out the situation until 1 January 2008 and the three modifications made by the Swiss Federal Council, namely: 1. introduction of a single reference mortgage rate for the whole of Switzerland; 2. the possibility for the landlord to increase the rent in case of energy improvements works carried out at the building; and 3. clarifications regarding the possibilities to index the rent of residential premises to the development of the Swiss Consumer Price Index (SCPI).