Geneva Rent Hike Case Ends Before the Federal Supreme Court

In Geneva, a landlord failed in his attempt to have a rent—which had quadrupled following unauthorized renovations—recognized as a permissible luxury rent. The Federal Supreme Court upheld the order to repay 193,609 francs and pay a fine of 32,000 francs.

The decisive factor was not only the lack of a permit for the kitchen and bathroom renovations carried out in 2017, but also the classification of the 173-square-meter, 6½-room apartment. As a result, under Geneva law, the property did not qualify for the exemption for luxury apartments, for which different rules apply.

Following the renovations, the annual rent had risen from 16,872 to 69,600 francs. In 2021, the tenants initially demanded a refund of 142,400 francs after learning of the lack of a permit. In subsequent proceedings, the Geneva authorities ordered a new lease agreement and set the refund amount at 193,609 francs. The administrative fine of 42,500 francs originally imposed was reduced to 32,000 francs in the cantonal proceedings.

Six and a half rooms instead of seven
Before the Federal Supreme Court, the owner’s argument that the apartment was a luxury unit was rejected. The decisive factor was a room measuring only 6 square meters, which counts as half a room under cantonal law. As a result, the apartment remained below the threshold of seven rooms required by Geneva case law for such an exception.

For owners and property managers, the case is particularly relevant because in Geneva, renovations beyond ordinary maintenance require approval. According to cantonal practice, this also includes work on kitchens and bathrooms if it enhances living comfort. Once approval is granted, the canton also sets the maximum rent that may be charged after the work is completed.

Housing Protection with Direct Implications for Rent
The ruling illustrates how closely the consequences of building law and tenancy law are intertwined in Geneva’s housing protection framework. Anyone who renovates without a permit and subsequently raises the rent significantly risks not only a revision of the lease agreement but also substantial refunds spanning several years. The Federal Supreme Court upheld the decision on June 8, 2026.