Guide for owners
Renting rooms and co-living: Is it worth it for property owners?
Individually let rooms and co-living generate noticeably more rental income than conventional flat letting, but they also demand significantly more ongoing management. This guide shows honestly how large the advantage is, what effort is involved, what the law requires and when it pays off for you. Written from the practice of a property management company with its own room operation.
By Jens Herbst, Founder of BoVita Property ManagementUpdated on 21 June 20268 min read
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How much more does co-living generate?
Co-living and room-by-room letting achieve higher income per square metre than conventional long-term letting. For orientation: the trade publication immoday cites around 18 to 30 percent higher income compared with standard letting. How much it amounts to net at your property depends on location, occupancy and effort. We recommend calculating the effect yourself with the free return calculator, which also includes a room and co-living perspective.
YIELD POTENTIAL
18 to 30 %
higher income per square metre compared with conventional long-term letting, according to immoday (indicative figure). Net result depends on location, occupancy and effort.
Why it involves more effort
The additional yield does not come for free. The most costly activity, re-letting, is no longer a one-off event per flat in a room house but a permanent state. Add to this applicant screening and compatibility with the flatshare, operating the shared areas including cleaning, internet and furnishings, a significantly higher communication frequency and occasional conflict management. Part of the additional return is absorbed by the additional effort, but professionally run, a clear advantage remains.
What the law requires
Furnished rooms carry a short statutory notice period of around two weeks under Swiss tenancy law (Art. 266e CO), which can be extended contractually via a minimum tenancy period. The security deposit must be held in a blocked account in the tenant's name (Art. 257e CO). On the contract model: individual tenancy agreements per room can each be terminated independently and give owners more flexibility. A shared flatshare contract can only be terminated by all tenants together.
Which properties and locations suit co-living
Co-living works where demand is strong: central, well-connected locations attracting students, young professionals, expats, or workers and employees of companies. Suitable properties have a practical floor plan with room for shared areas. In peripheral locations without this demand, conventional letting is often the better choice.
Discuss your property with BoVita
In a short, no-obligation initial call we look at your property and show what runs differently with specialised management.
No obligation and free of charge.
Self-operate or bring in a specialist?
Because of the high ongoing effort, most owners hand operations to a specialised manager or operator. Pay attention to the model: BoVita works on behalf of the owner with a transparent fee structure, not through a master-lease with a hidden mark-up. This means you retain the tenancy relationships and full transparency.
More on this in the related guide: Have rooms, flatshare or co-living managed in Switzerland
Co-living is a growing market
Urbanisation, the desire for flexibility and affordable housing are driving demand for furnished rooms and co-living. For owners and developers with suitable properties, this is an opportunity, provided the operation is set up professionally.
Calculate the effect for your property
Run the numbers for your property with the free return calculator. In the guide "Have rooms, flatshare or co-living managed in Switzerland" you can read how operation on behalf of the owner works and what to look out for.
Frequently asked questions
How much more return does room-by-room letting generate?
What is the catch with co-living?
What notice period applies to furnished rooms?
Individual room contracts or a joint flatshare contract?
Is co-living worth it even for a single property?
Should I self-operate or hand it over?
About BoVita
BoVita is a property management company from Switzerland with a rare specialisation in furnished rooms, flatshares and co-living. We take over the full management of properties, from rent collection and utility-cost statements to tenant changes, and add depth where conventional management firms reach their limits. This guide bundles our hands-on knowledge for owners and management companies.
Sources
This overview is based on the following sources and legal foundations. All information without guarantee.
- 1.immoday, Coliving as an investment opportunity (trade publication, indicative income figures)
- 2.Fedlex, Swiss Code of Obligations, notice period for furnished premises (Art. 266e CO)
- 3.Fedlex, Swiss Code of Obligations, security deposit (Art. 257e CO)
- 4.Swiss Tenants' Association, subletting and shared living
- 5.Federal Statistical Office FSO, vacancy rate
Ready to unlock your property's co-living potential?
From complete property management to the speciality of rooms and co-living. Initial conversation with the founder, non-binding and free of charge.