Share certificates, occupancy rules, income limits: what you need to know

Three terms come up at every cooperative: share certificates (Anteilscheine), occupancy rules and income limits. They are not regulated the same everywhere. The binding figures are in the statutes and letting regulations of the cooperative in question. As an example we take the ABZ in Zurich, because it explains its rules publicly.

Share certificates and share capital

Share certificates document your stake in the cooperative's capital. This money is not a fee but your participation. At the ABZ it is called share capital and depends on the flat size:

• 1.5 rooms: CHF 3'500
• 2.5 rooms: CHF 4'500
• 3.5 rooms: CHF 5'500
• 4.5 rooms: CHF 6'500
• 5.5 rooms: CHF 7'500
• 6.5 rooms: CHF 8'500

The minimum share per member at the ABZ is CHF 1'500. The capital must be paid in by handover of the flat; you only get the keys against proof of payment. After you move out it is repaid once all obligations under the tenancy are met. The ABZ does not accept rent deposit insurance. For fixed-term contracts it asks instead for a deposit of three months' rent.

If you lack the money, the ABZ names private loans, advances from social services or a loan from a solvent third-party organisation such as a cantonal church as ways. According to Moneyland, second-pillar and pillar 3a money can also be withdrawn early for cooperative shares. You clarify the conditions with your pension fund or pension institution.

Important: these are the amounts of one cooperative. Others ask for more or less, calculate per person or per flat. Check the statutes.

Becoming a member

At the ABZ, contracting parties become members as soon as they have an open-ended tenancy. Anyone renting only for a fixed term does not become a member and has no right to a follow-up contract. This may be regulated differently at other cooperatives.

Occupancy rules

Occupancy rules set how many people should live in a flat at least. The Zurich regional association names "persons plus one" as a common rule: you only apply for flats that fit your household size. The ABZ sets the minimum occupancy in the tenancy agreement:

• 1 to 2.5 rooms: at least 1 person
• 3 to 3.5 rooms: at least 2 people
• 4 to 4.5 rooms: at least 3 people
• 5 to 5.5 rooms: at least 4 people
• 6 to 6.5 rooms: at least 5 people

If your family situation changes, there are transition periods. The ABZ names, for example, 2 years after a separation or a death, up to 8 years for families after a death and 3 years for households with three or more children. People over 80 usually do not have to move because of under-occupancy. According to the ABZ, around 3 percent of households currently do not meet the new rules.

Income limits

Precision matters here. Income and asset limits apply mainly to subsidised flats: the Zurich regional association writes that these limits are strict and checked every two years. The ABZ writes that subsidised flats have strict guidelines that are checked regularly. It gives no figures on its page.

But income can also play a role with non-subsidised flats: the ABZ writes that affordable flats are mainly intended for people of modest means. Specific limits depend on canton, municipality and programme. We therefore deliberately give no franc amounts. Read the letting regulations of the cooperative you apply to.

Cost rent

Cooperatives usually charge a cost rent (Kostenmiete). Moneyland: the rent only has to cover the actual costs. How high it is in an individual case is stated in the listing.

How flat size is measured

The ABZ measures flat size as main usable area according to SIA 416, excluding balconies. When you compare flats it is therefore worth looking at the number of rooms and the area in the listing, not just the rent.

Questions you should ask

• How high is the share capital for the flat, and by when must it be paid?
• Is it paid interest, and when is it repaid?
• What minimum occupancy applies, and what transition periods are there?
• Is the flat subsidised, and which limits apply then?
• Is the tenancy fixed-term or open-ended?

More on the topic

• Current listings: Zurich, Bern, Basel.
• Finding a cooperative flat: the overview
• Applying: documents and typical mistakes