Facts
The dispute opposes a tenant, Ms. S., to her landlord, C., regarding a rent increase for a four-room apartment located in Geneva. The initial rent of 6'000 fr. per year was gradually increased to 8'400 fr. per year in 1993. The landlord then requested a new increase to 10'320 fr. per year, citing alignment with the usual rents in the neighborhood. The tenant contested this increase.
The procedure began before the Rent and Lease Tribunal of the canton of Geneva, which rejected the landlord's request. The Appeal Chamber for Rent and Lease Matters annulled this judgment and found that the rent of the apartment had been validly set at 10'320 fr. per year, taking into account the theoretical adjustment of comparative rents to the decrease in the mortgage rate.
The tenant filed an appeal in revision with the Federal Tribunal, contesting the decision of the Appeal Chamber and the theoretical adjustment of comparative rents.
Considerations
The Federal Tribunal examined the issue of the theoretical adjustment of comparative rents to the evolution of downward factors, in particular the decrease in the mortgage rate. It considered that this adjustment is not incompatible with federal law and that the principle of theoretical adjustment of comparative rents is admissible.
The Federal Tribunal also examined the modalities of application of this adjustment, in particular the burden of proof and the time limits. It decided that the burden of proof lies with the party invoking the market rent criterion, i.e. the landlord in general, and that the time limits must be set at the date of fixation of the last rent of each apartment taken as a comparison point.
The Federal Tribunal concluded that…