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Old 13.02.2017, 18:57
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How is rental affordability determined?

We have now firmly decided to make the move to Geneva and have started scouting areas to determine which are desirable and practical (work commute, kids to kindergarten, etc.

My question relates to how an agency or landlord determine affordability. I will be earning a tax free income of CHF140K per year, together with an irregular additional income from a small business back home (app 40K per annum for the last 2-3 years).

What would this typically permit in terms of monthly rental expenditure. My concern is with whether the irregular income (not every month, and not fixed) would be counted towards annual income by a regie or landlord.

Advice appreciated.
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Old 13.02.2017, 19:29
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Re: How is rental affordability determined?

Roughly 140-180k / 12 / 3 = 3888-5000 Fr/month would be a limit. But it's not a hard rule, especially at such ridiculously high rent. When you're the only applicant, landlord doesn't have much choice but sign up with you even if you don't formally make the cut in terms of income. There's no law that says he can't
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Old 14.02.2017, 11:01
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Re: How is rental affordability determined?

There is no law and at that salary, no landlord or agency will sit there with a calculator It's really just a rule of thumb, i.e. 1/3 of gross salary, aka 3900/month.

Bonus doesn't count to make a rough calculation, though granted at that salary, a few hundred more or less will hardly be a problem.

Anything up to 4000-4500 should be no problem imo. You will have quite little competition in that price range, so whatever you want you'll probably get. Personally I wouldn't go higher than that. The bonus may have been normal in the last years, but you never know. It's not exactly like you would face poverty even if you bring home a bonus of 20k one year, but better to calculate slightly on the careful, conservative side - imo.
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Old 14.02.2017, 11:03
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Re: How is rental affordability determined?

Thanks Samaire. My salary is paid nett of taxes (I work for an int org so tax exempt in CH). I assume that I`d be able to go beyond the 30% (of gross) then?
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Old 14.02.2017, 11:09
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Re: How is rental affordability determined?

The Swiss way of calculating is based on gross salary anyway, which is always before taxes as CHers are not taxed at the source.

If you're not taxed at all, then 5k is no problem whatsoever.
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Old 20.02.2017, 22:17
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Re: How is rental affordability determined?

How about if the applicant is a couple and they both work (for relatively low wages)?
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