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The insurance company Helvetia Baloise owns several properties on Seefeldstrasse in Zurich.
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When tenants change, hefty rent hikes are sometimes imposed in Zurich, as several cases show. For example, an insurance company nearly doubled the rent for a 4.5-room apartment within a few years.
Anyone looking for a new apartment in Zurich faces a real problem: rents are barely affordable anymore. A particularly egregious case is currently making headlines on Seefeldstrasse. There, the owner, Helvetia Baloise, has nearly doubled the rent for a 4.5-room apartment within just a few years.
This is reported by “Blick.” According to the report, the insurance company has been steadily raising prices for new leases. For example, a 4.5-room apartment on Seefeldstrasse cost 3,200 francs in 2022 but has since been raised to 5,895 francs. These are steep price hikes, even though the apartments have been modernized repeatedly over the years. Not many people can afford that. That’s why some apartments have been vacant for months, according to a tenant.
Regarding the calculation of rent, the insurance company simply states: “As part of its fiduciary duty to policyholders, Helvetia Real Estate primarily invests pension funds in real estate.” Rent setting follows a “clearly defined process based on local and neighborhood standards, tenancy law regarding permissible maximum returns, as well as any renovation work and rent reserves.”
After 30 years without a change of ownership, landlords may set the rent based on local and neighborhood standards, but must provide evidence of at least five comparable apartments in the same location or neighborhood that are owned by different landlords. However, this proof is only required if new tenants object to the price. In most cases, however, this does not happen.
But challenging the rent can be worthwhile, according to two cases on Florastrasse. In one, the rent for a three-bedroom apartment built by Helvetia Baloise in 1950 was set to rise to 2,800 francs. Following a settlement before the conciliation board, a price of 2,400 francs was ultimately agreed upon. In another case, the rent was set to rise from 2,000 to 2,700 francs. The conciliation proceedings resulted in a monthly rent of 2,500 francs.
