Facts

Pension Fund X., the owner of a building in Geneva, leased an apartment to Mrs. R. in December 1991. Upon conclusion of the lease, the lessor provided the tenant with the official form for determining the rent, but without indicating the reasons for the rent increase compared to that paid by the previous tenant.

Mrs. R. contested the initial rent. The Geneva Rent Tribunal upheld her claim, finding the rent increase null and void due to a formal defect. The Pension Fund appealed against this decision.

Considerations

The Federal Tribunal ruled that, in cantons where the use of the official form is mandatory upon conclusion of a new lease, the absence of justification for the rent increase on this form results in the nullity of the determination of the initial rent.

However, this nullity does not extend to the lease contract as a whole. The judge must determine an appropriate rent taking into account all the…