Swiss housing market, especially in big cities, is very competitive. Does paying a ‘finder’s fee’ increase your odds of success?
Given the shortage of available rental properties in and around urban centres, an increasing number of apartment seekers in Switzerland advertise on social media and other digital platforms their willingness to pay a fee to anyone helping them find an accommodation without all the hassles normally involved in the process, such as long waiting lists.
According to a recent report, the fees for this service range from three- to four-digit figures, depending on how tight the housing market is in a given community.
For instance, the ‘going rate’ for Lucerne, where the vacancy rate is less than 1 percent, is 1,000 francs, according to one such advertisement.
In Zurich, this amount is 500 francs for a flat in districts 2, 3, 6, or 8.
Additionally, the amount varies depending on the search criteria: the fee offered for a ‘no fuss’ apartment will be lower than for special requirements, such as a view, balcony, or parking spaces.
Is it worth it?
There are no official figures indicating whether such payments actually help in finding rentals.
The report does point out, however, that this system “exacerbates the problem of an already competitive market: those with money have the advantage. Based on their income or assets, they are more likely to secure a new lease than tenants in precarious financial circumstances. The finder’s fee gives them an additional edge.”
Is this system legal?
Though it smacks of a bribe, a finder’s fee is not illegal if offered voluntarily.
The system is no different than a payment for any services rendered.
It does, however give priority over scarce apartments to those with deeper pockets, which can be seen as unfair and unethical.
READ MORE: Top ten tips for finding an apartment to rent in Switzerland