Summary

On February 25, 2026, the Federal Council opened a consultation process on an amendment to the Ordinance on the Lease and Rental of Residential and Commercial Premises (VMWG). The ordinance amendment clarifies the calculation of permissible returns in rental law and incorporates recent Federal Court practice into binding regulations. The goal is to increase legal certainty for tenants and landlords and to ensure coherent application of rent provisions. The consultation process runs until June 5, 2026.

Persons

  • Engler (Motion Sponsor 22.4448)

Topics

  • Rental law and rent regulation
  • Mortgage reference interest rates
  • Legal certainty and planning security
  • Federal Court practice

Clarus Lead

The Federal Council closes an existing regulatory gap in rental law through more precise definitions of permissible returns. The amendment to the VMWG clarifies how net returns and gross returns are calculated and which surcharges to the mortgage reference interest rate are permissible. This clarification reduces legal uncertainty and creates uniform standards for both parties – a key factor for stable rental markets and judicial predictability.

Detailed Summary

The ordinance amendment implements Motion 22.4448 Engler and is based on Article 269 of the Code of Obligations, which prohibits abusive rents when yields are excessive. To date, the ordinance level has lacked clear distinctions between net and gross returns as well as between current income and value-increasing investments – these differentiations were based exclusively on Federal Court case law and led to legal uncertainty.

The proposed changes define concrete threshold values for the first time: Up to a reference interest rate of 2 percent, a surcharge of 2 percentage points remains permissible (in line with previous case law). From 2.25 percent, the surcharge is reduced in 0.25 percentage point increments to avoid abrupt system changes. From a reference interest rate of 6 percent, the surcharge stabilizes at 0.5 percentage points above the reference interest rate – a compromise between tenant and landlord protection.

Additionally, terms such as gross return and value-increasing investments are clearly defined and adapted to more recent Federal Court practice. The interest and amortization of value-increasing investments are clarified, particularly with regard to capitalization rate, useful life, and consideration of ongoing maintenance costs.

Key Points

  • Regulatory gap closed: For the first time, return calculations are concretely defined at the ordinance level rather than based solely on case law
  • Graduated surcharges: Different permissible surcharges are set depending on the reference interest rate to buffer market volatility
  • Increased legal certainty: Clear definitions of net/gross returns and value-increasing investments reduce legal disputes
  • Parliamentary mandate implemented: Motion 22.4448 is concretized through this ordinance amendment

Critical Questions

  1. Data basis: Are the established thresholds (2%, 2.25%, 6%) based on empirical analyses of market development or primarily on existing case law? Which data sources validate these limits?

  2. Conflicts of interest: How was the balance between tenant protection and landlord profitability ensured? Were both interest groups included equally in the consultation?

  3. Causality of value-increasing investments: How is a distinction made between necessary maintenance and genuine value increases? Is there a risk that landlords will reclassify maintenance costs as investments?

  4. Implementation risks: How are transitional cases handled – existing lease agreements concluded under old rules? Are there grandfathering provisions or immediate application?

  5. Capitalization rate definition: The clarification of the capitalization rate is central – how is it concretely determined, and who sets it (Federal Council, cantons, courts)?

  6. Market dynamics: Does the regulation account for regional differences (urban vs. rural markets) or does a nationwide uniform standard apply?

Source Directory

Primary Source: Permissible Returns in Rental Law to Be Regulated More Clearly – Federal Council Press Release – February 26, 2026

Supplementary Regulations:

  1. Article 269 Code of Obligations (OR)
  2. Motion 22.4448 Engler
  3. Ordinance on the Lease and Rental of Residential and Commercial Premises (VMWG)

Verification Status: ✓ February 26, 2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-check: February 26, 2026