Facts
The A. Cooperative Society had granted C. and B. the use of an apartment located in a building subject to the regime of low-rent housing (HLM) until December 31, 2016. On September 19, 2016, the tenants requested a 40% rent reduction as of January 1, 2017, which the landlord refused.
On October 27, 2016, tenant B. filed an action against the landlord and co-tenant C. to obtain a rent reduction. The Rental Tribunal ultimately set the annual rent at 18,330 francs, excluding charges, as of January 1, 2017.
The landlord appealed against this decision, disputing the application of the absolute method of calculating the net yield of the building.
Considerations
The Federal Tribunal dismissed the appeal. It considered that, despite the change in regime (from state rent control to a free market), both the landlord and the tenant can invoke the absolute method of calculating the net yield of the building.
Indeed, the application of this method responds to a concrete need of the tenant, as according to the calculation made by the cantonal judge, the yield was indeed excessive. Furthermore, judicial review remains…