Facts
The Municipality of the City of Berne (plaintiff) concluded a lease contract on 23 September 1996 with A. (defendant) for a 2-room apartment in Berne. The net monthly rent was set at CHF 512 and the ancillary charges at CHF 123. On 12 December 2000, the plaintiff notified the defendant of an increase in the net rent to CHF 770 and an adjustment of the ancillary charges to CHF 110 effective 1 May 2001, justifying this increase by an adaptation to the customary rents in the neighborhood. The defendant contested this rent increase with the Rent Office of the City of Berne, which noted the failure of the conciliation negotiations on 12 June 2001. On 12 July 2001, the plaintiff filed an action with the District Court VIII Berne-Laupen, concluding that the net rent of CHF 770 was not abusive as of 1 May 2001. The President of the District Court VIII Berne-Laupen granted the claim on 25 April 2002, a decision confirmed on appeal by the Cantonal Court of Berne on 17 September 2002. The defendant then appealed to the Federal Tribunal.
Considerations
The Federal Tribunal considers that, although no rent increase clause was provided for in the lease contract, an adaptation of the rent to the customary rents in the neighborhood is admissible. Indeed, the fact that the lessor is a public authority providing subsidized housing does not create a legitimate expectation for the tenant to maintain the last rent paid, insofar as he knew that it was…