Our number 1 tip for initial lettings at cooperatives: speed

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A well-known Swiss saying goes: Speed is of the essence. There are few situations where this is more relevant than with the initial letting of housing cooperative new-build projects in Zürich. So our top tip is: really apply as soon as the portal goes online. In this blog post we explain why this is so important.

Initial lettings at cooperatives: often on "hidden" websites

When a cooperative lets a new-build project, this usually happens on a website created specifically for it. It is linked on the cooperative's regular website, but you have to know where! You will only very rarely find these projects on mainstream property portals. After all, cooperatives naturally want enough people to apply so that there will definitely be enough suitable future tenants among them. At the same time, they shy away from too many applications. Since the documents are usually reviewed by people, a large number of applications means a lot of work. So the approach of hiding new-build projects a little is understandable to a certain extent.

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Expectations vs. reality: more people apply than planned

In recent times we have observed the following scenario several times: A cooperative plans to let a new-build project and announces the length of the application window, for example one week. Then the portal opens and far more people apply than expected. The cooperative then closes the application window much earlier than announced. Those who relied on the cooperative and assumed they could apply a little later (for example because they were working or on holiday) miss out. Very frustrating. Two examples from this year: The application window for the Lanzrain new-build project in Oberengstringen by Baugenossenschaft Schönheim was supposed to remain open for a week. In fact, all the apartments were gone on the first evening. For the Herzogenmühle new-build project in Zürich Schwamendingen by Milchbuck Baugenossenschaft, an application window of 24 hours was announced. But after just a few hours the cooperative closed it, having received more applications than expected. There were 1,500 applications for about 125 apartments. In Zürich it is not unusual for 50-100 households to apply for a single apartment. So the application window was closed very quickly by Zürich standards. This was very disappointing for many people.

Crucially: apply immediately

Unfortunately, cooperatives underestimate the interest in their new-build projects and therefore announce application windows that are far too long. So here is our number 1 tip: apply at the exact time the letting window starts. Do not rely on the cooperatives' announcements. Even if it says you have 24 hours, it is very likely that the portal will close earlier. Only those who log in at the precise start time of the letting can be sure their application will be submitted.

Might a random draw be fairer?

Given this difficult situation, the question naturally arises as to whether a method might exist that is fairer than the current speed-based system. People who are working or otherwise unavailable at the start of the letting miss out on great opportunities. In our view the following system would be fairer: the letting window lasts several days, giving all interested people the chance to apply. After that, a computer program first filters out applications that do not meet the criteria (for example occupancy and income). Then, from the suitable potential tenants, a random draw selects some to be invited for an interview. Building a computer program that performs the preselection and the random draw would be relatively easy and, in our opinion, would greatly increase fairness. The workload for the letting teams would also be reduced. We would be very interested to hear the opinions of the cooperatives as well as of prospective tenants on such a system. Get in touch via email or Instagram DM!

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