Reduction of rent based on the relative method

Facts

The dispute opposes a tenant and a landlord regarding a request for rent reduction. The landlord acquired a building for 210'000 CHF and rented part of it to the tenant for a monthly rent of 1'485 CHF, plus ancillary costs. The tenant requested a rent reduction due to the decrease in mortgage interest rates. The justice of the peace reduced the rent by 8.5% and the cantonal court dismissed the landlord's appeal.

The landlord appealed to the Federal Court, requesting the annulment of the cantonal decision and the maintenance of the initial rent. The Federal Court admitted the appeal and referred the case back to the cantonal jurisdiction for a new decision.

Considerations

The Federal Court examined the question of whether the landlord can oppose a request for rent reduction based on the relative method by arguing that the last rent is not abusive despite the modification of the calculation bases. The Court recalled that the relative method aims to protect the tenant's trust in the behavior of their contractual partner.

The Court considered that the relative method only applies in the event of a unilateral modification of the contract and that, in the case of a rent reduction, the landlord can invoke the absence of excessive return to oppose…