How to Cut Your Housing Costs in Half
Save Money on Rent and Utilities in Switzerland
Housing is the biggest single expense for Swiss residents, with each household spending 14.7 per cent of its income on housing and energy costs. On average, each household spent CHF 1,458 per month on this in 2015.¹
However, in some areas, housing costs are much higher. Zurich, Bern and Geneva are the most expensive European cities to live in, according to Mercer’s annual Cost of Living Survey for 2019.²
With such a high cost of living, it makes sense to reduce your housing costs as much as possible. But how can you do this? Is it even possible to cut your housing costs in half?
Here are some strategies for saving money on rent and utilities in Switzerland.
Rent a Home Outside the City Centre with Excellent Public Transport Links
When searching for a home to rent, avoid the most expensive areas around the city centres.
Look for less expensive accommodation on the outskirts of a city, in a smaller town or a rural area.
Search for a house or apartment that’s close to fast and efficient public transport, so you can manage with just one car or even without a car, thus reducing your living costs further.
Nestled in the mountains, Olten is a small, picturesque town. It’s very conveniently located for commuting to Zurich, Basel, Bern or Lucerne, which are all around 30 minutes away by train.
You can rent a one-bedroom apartment in the centre of Olten for just CHF 700. This is less than half the cost of a similar apartment in Zurich (CHF 1,791).
If you need a larger home, the average rent of a 3-bedroom apartment in the centre of Olten is CHF 1,250, which is just over one-third of the CHF 3,317 you’d pay for an apartment of the same size in the centre of Zurich.³
If you’d like to live in a larger town, why not consider Winterthur? It’ll cost an average of CHF 1,500 to rent a 1-bedroom apartment and CHF 2,600 to rent a 3-bedroom apartment in the centre. Commuting into Zurich by train would take about 25 minutes.⁴
Even within the cities, you can more than halve your rent if you’re prepared to live further away from the centre.
An analysis of the rent on apartments close to each stop on Zurich’s tram network showed that the rent on a three-bedroom, 70-square-metre apartment near the Roswiesen tram stop in District 12 was CHF 1,370. This is less than half the average rent of CHF 3,760 on an apartment of the same size in the area of the Paradeplatz tram stop in the city centre.⁵
Rent the Smallest Possible Unfurnished Home
In Switzerland, rent is usually based on the size of the property in square metres and/or the number of rooms, so renting the smallest property that meets your needs will reduce your housing costs.
For example, a two-room apartment in Geneva costs CHF 1,734 per month to rent, which is less than half the rent of CHF 3,820 on a 4.5-room apartment in the same city.⁶
When viewing potential homes, look for spaces you can make maximum use of. Perhaps you could fit a desk into a corner of the living room or bedroom, instead of renting a larger home with a study. Or, maybe you could place a sofa-bed in the living room, so that you don’t have to rent a home with a spare bedroom.
Living in a small home also helps you save money in other ways. You’ll have lower insurance, lower utility bills and less indoor and outdoor space to clean and maintain.
Since furnished homes usually cost more to rent than unfurnished homes, it’s more cost-effective to rent an unfurnished home and either bring your furniture from your home country or buy furniture inexpensively, either from IKEA or second-hand.
Cancel the Cable Connection Charge
If you have a combined internet, television and landline telephone package provided by a telecoms company, you don’t need to pay for a connection to the cable network, because the cost of receiving these services via a digital modem is included in your package.
However, your landlord or property management company may be billing you for the cable connection. This expense isn’t always easy to see because it’s often included in the ‘additional costs’ (Nebenkosten) section of your monthly rent.
To remove the cable connection charge from your rent, send a written request to your landlord or property management company. They are obliged to accept your request and cancel the charge.
You could save around CHF 400 per year by cancelling the cable connection charge, according to the website, Hello Switzerland.⁷
Since the average cost of a combined internet, television and telephone package is CHF 1,200 per year⁸, cancelling the cable connection charge could save you 25 per cent of your annual outgoings in this area.
Use Electricity Off-Peak
Ask your electricity supplier if your tariff includes a lower rate at off-peak times (niedertarif), and, if so, what the exact hours are. These are often at night, between the hours of about 10 pm and 6 am, but they may also be at various times during the weekend.
If cheaper electricity is included in your electricity tariff, set your hot water heater to come on and go off during the less expensive hours, and use your washing machine, dryer, dishwasher and other appliances during the off-peak times whenever possible.
If your supplier bills electricity at one price, no matter when you use it, save money by switching to another provider that offers cheaper off-peak electricity.
It’s possible to save up to CHF 50 per month just by using your washing machine and dryer during the less expensive hours.⁹
Cut Your Water Costs
The cost of water supply, usage and sewage can vary enormously by area. It can be particularly expensive in villages.
Before deciding to rent or buy a property, ask the local council for the water-related costs, so that you avoid a shock when the first bill arrives.
If you already live in an area where water charges are high, reduce your water bill by using less water. There are many ways to do this, including:
- Setting a timer while you’re in the shower
- Turning off the tap while you’re cleaning your teeth
- Only using your washing machine or dishwasher for full loads.
Challenge yourself and your family to save as much water as possible and see how much money you can save.
Recycle to Reduce Your Rubbish Disposal Tax
The more rubbish for landfill disposal you have, the higher your rubbish disposal tax will be. Recycling is free, so avoid buying products with non-recyclable packaging and recycle as much as you possibly can.
The waste disposal tax varies slightly from council to council but is always based on the size of your rubbish bags.
Before renting or buying a home, ask the local council (Gemeinde) how much the local rubbish tax is.
Could You Cut Your Utilities Costs In Half?
The average cost of utilities, including electricity, heating, water and rubbish disposal, is CHF 188 per month for an 85-square-metre apartment, according to Numbeo.¹⁰
If you were to save CHF 50 per month by using your appliances at off-peak times, you could potentially save an extra CHF 44 per month by living in an area with lower water rates, saving water and recycling as much of your rubbish as possible. It’s therefore possible to cut your utilities bill in half.
Although housing costs are very high in Switzerland, it’s definitely possible to cut your costs in half or at least reduce them. Use some or all of these strategies to see how much you can save.
References
¹ What do the Swiss spend their money on?
⁴ Cost of Living in Winterthur
⁵ New maps reveal where in Switzerland rent prices are highest
⁶ Here’s how much it costs to rent in Switzerland’s biggest cities
⁷ Save Money by Cutting Hidden Costs in Your Utility Bill
⁸ Is Switzerland Really too Expensive for Expats?
