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Old 19.07.2018, 11:30
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The rule of third in apartment rental: Is it salary before or after tax?

I've heard alot about the famous unwritten (or written?) rule in renting flats where the monthly rent should be at most a third of one's salary. But didn't see anywhere if it's the gross or net? Or it depends on the renter?
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Old 19.07.2018, 11:33
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Re: The rule of third in apartment rental: Is it salary before or after tax?

Gross.

And it is not law, but most agency's/landlords use it.
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Old 19.07.2018, 13:27
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Re: The rule of third in apartment rental: Is it salary before or after tax?

We were also told the 'rule' is one third of gross salary when we moved but as we planned to live in relatively higher tax BS, we used one third of net for our own searches.

Personally I think one third of gross - depending on your salary of course - is a lot to spend on rent before you consider other costs like health insurance, food etc. as well as the fact Switzerland is one of the better countries in Europe to save and invest.
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Old 19.07.2018, 16:35
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Re: The rule of third in apartment rental: Is it salary before or after tax?

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We were also told the 'rule' is one third of gross salary when we moved but as we planned to live in relatively higher tax BS, we used one third of net for our own searches.

Personally I think one third of gross - depending on your salary of course - is a lot to spend on rent before you consider other costs like health insurance, food etc. as well as the fact Switzerland is one of the better countries in Europe to save and invest.
You do not have to spend so much on rent, it is used as the upper limit of what you can pay on rent by most landlords. And not used as a minimum of what you should rent.
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Old 19.07.2018, 18:02
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Re: The rule of third in apartment rental: Is it salary before or after tax?

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You do not have to spend so much on rent, it is used as the upper limit of what you can pay on rent by most landlords. And not used as a minimum of what you should rent.
Agreed that it's a guideline maximum limit rather than a target to aim for In our case we only spend about 22% of our net pay on rent.
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