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Old 30.04.2011, 16:23
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Rent max = 1/3 gross salary: true or false?

Hello, I've found some topics in the forum with references to this subject but never a whole post related to this (if there is please someone send me the link!)
the point is: who says that the maximum rent you can pay is one third of the gross salary? the law or just common sense?
I found some apartments, very nice, whose rent excedes 1/3 of my gross, but not for a high amount, so I don't know whether to apply or not. i am single, no kids.
the idea is to find a 3,5 and then look for a roommate later on subrent.
if the rent is like 38-40% of the gross, do the agencies always deny the apartment?
thanks a lot
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Old 30.04.2011, 16:41
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Re: Rent max = 1/3 gross salary: true or false?

Whether it is the law for you as a renter or not I do not know, I believe it is a "guideline" as much as anything and more on the side of the landlord / letting agency as perhaps higher ratio rent has "historically" meant renters eventually becoming late (or non) payers.

The flip side also is it helps keep rents within "affordable" ranges sort of. Just like they're not keen to let to someone for whom the rent would exceed 33% of income, they also (try to) keep it about similar for allow someone to rent from them... in a selection pool they generally try to let to folks for whom the rent is 33% of their income as opposed to someone for whom rent is only 20% of income.

I do not know if there are "bonded" places here where the land is somehow subsidized by the government BUT I had attempted to get apartments in the US with a rent in a nicely comfortable range (less than 33% of gross) and was not allowed as I made too much money.
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Old 30.04.2011, 16:46
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Re: Rent max = 1/3 gross salary: true or false?

The only thing I can find is that if a tenant wants to leave the flat outside the official moving date he has to provide the name of a successor and the successor must be prepared to take over the rental agreement to the same terms - and there the '1/3 of his income' is an indication that he will, in all probability, be able to pay the rent.
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Old 30.04.2011, 17:01
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Re: Rent max = 1/3 gross salary: true or false?

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The flip side also is it helps keep rents within "affordable" ranges sort of. Just like they're not keen to let to someone for whom the rent would exceed 33% of income, they also (try to) keep it about similar for allow someone to rent from them... in a selection pool they generally try to let to folks for whom the rent is 33% of their income as opposed to someone for whom rent is only 20% of income.
It is not a law. It is a common sense guideline. If the rent is over 30% of your income you could find it difficult to pay and landlords and agents don't want to deal with the consequences of you not paying your rent.

The flip side is not true. We've always rented at around 20% of our income and it has never been a problem.

The issue is supply and demand really. Because there are so many people looking for the same apartment "they" can be picky about who they give it too. The better you fit the "guidelines" the better chance you have of getting the apartment but it's also related to how many other people want it. If no one wants maybe they'll take you.

You could apply. It won't hurt. Don't forget the deposit probably going to be 3 months rent.
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Old 30.04.2011, 18:06
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Re: Rent max = 1/3 gross salary: true or false?

It's just a general rule not set in stone.

Our agent told us normally she doesn't let to tenants who don't meet the 1/3 ratio, but for us she did!
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Old 06.05.2011, 16:02
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Re: Rent max = 1/3 gross salary: true or false?

thanks everybody!
i have another question
if we are 3 persons (2 students, 1 with salary and one without, and a worker), would they let us in a 3.5 apartment? or the limit is 2 persons? any suggestions??
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Old 06.05.2011, 16:06
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Re: Rent max = 1/3 gross salary: true or false?

There's five of us in a five room apartment, the only issue I see is undue wear and tear and you will want to strangle each other unless there are two bathrooms and a very large kitchen. Trust me, not having a "living room" other than a kitchen is going to be tough, unless you are each other's best friends and will not be inviting a great deal of other guests.

Some landlords are against flat shares as a principle since they sadly do often result in a trashed apartment and if you are students, you are suspected of planning wild parties.
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Old 06.05.2011, 16:09
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Re: Rent max = 1/3 gross salary: true or false?

i've lived with 4 persons and a bathroom and a kitchen and living room, everything was fine, we were almost never at home!
we are all 25 yo so no wild parties, and we'll write this in the cover letter
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Old 06.05.2011, 16:15
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Re: Rent max = 1/3 gross salary: true or false?

You also have to look at this from a Landlords point of view....... after all they make the decisions on who moves in.


When you approach 1/3 of the income on rent, you potentially start to meet a few more financial constraints.

You want to know that your tennant can at all times pay the rent, just as "Mr Bank Manager" wants to know that you can pay your mortgage.

As posted earlier, it's mostly common sense not to exceed a 1/3 of your income on rent anyway.

You just sleep and eat there etc......... there are far better things for you to spend your money on than someone elses 'income/mortgage'.
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Old 06.05.2011, 16:33
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Re: Rent max = 1/3 gross salary: true or false?

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i've lived with 4 persons and a bathroom and a kitchen and living room, everything was fine, we were almost never at home!
we are all 25 yo so no wild parties, and we'll write this in the cover letter
If there is 3 of you in a 3.5 room flat, then one of you will be sleeping in the living room, meaning you will not have one, unless two of you are a couple, which has other issues with it.
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Old 06.05.2011, 17:33
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Re: Rent max = 1/3 gross salary: true or false?

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meaning you will not have one
i already have none, and i live fine, i'm almost never home
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Old 09.05.2011, 10:11
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Re: Rent max = 1/3 gross salary: true or false?

It can go much further than 1/3 gross (see below).


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Hi,
  • The regies do look at net salaries when selecting tenants. For example if the rent is 3000 CHF per month, they will openly stipulate monthly income of three or four times that depending on the regie, Therefore if you do not earn 9K or 12K per month, then you will be first to removed from the list of potential tenants. They want to be sure that you will be able to pay your rent. It is therefore better then if you are a couple and both earning.
Hope this help
Chester
3-4x net salary? It goes far beyond 3x gross you are talking about.
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Old 09.05.2011, 18:07
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Re: Rent max = 1/3 gross salary: true or false?

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It can go much further than 1/3 gross (see below).




3-4x net salary? It goes far beyond 3x gross you are talking about.
The guideline is 3x gross, 4x net. Only in really high demand markets, properties will they drop you if you are only at 3x. Like I said above if there is little demand they are not going to drop you because you are only making 3x. Of course if there is high demand they need to find a way to cull the herd (so to speak).
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Old 09.05.2011, 18:27
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Re: Rent max = 1/3 gross salary: true or false?

Jein.

The monthly utilities can also factor into the decision making process. These can vary greatly and have to be budgeted for.
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