Calculating ancillary costs in Switzerland: what do they include?
Ancillary costs in Switzerland: what costs can your landlord charge? And how can I protect myself against paying too many bills? Comparis explains what you need to know.
06.03.2024
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1. Renting an apartment: what are ancillary costs?
Ancillary costs are additional bills related to using an apartment. They aren’t a part of the net rent. Ancillary rental costs arise in:
Private areas (e.g. apartments).
Communal areas (e.g. stairwells).
2. Ancillary costs in Switzerland: what can my landlord charge for?
Landlords may charge additional bills for:
Heating and shared electricity (e.g. for stairwell lighting or lifts). You usually pay for private electricity usage directly to your electricity provider.
Water and waste water.
Caretaker services.
Lifts.
Waste disposal.
Administrative flat rate: usually 3% of the ancillary costs sum. You can reject and challenge any rates over 3%.
You can find a detailed list of permitted and non-permitted ancillary costs from the Tenants’ Association.
Important: you only have to pay costs incurred directly through shared use. These don’t include:
Maintenance, investment and repair costs.
Taxes.
Insurance premiums. Exceptions:
Heating system insurance.
State-supported apartments.
Connection fees for cable network or sewerage.
If your landlord bills you maintenance costs as ancillary costs, you aren’t obliged to pay.
Administrative fee for ancillary costs in Switzerland
Your landlord may only charge you administrative costs in connection with any ancillary costs. For example, this could be the time needed for to organize your energy supply or creating your utility bill.
Administrative costs are usually billed according to one of the following options:
Depending on effort or expense needed (an hourly wage, for example).
Based on local rates.
Based on a fixed percentage.
3. Where must ancillary costs be recorded?
Ancillary costs must be explicitly listed in your rental agreement. You don’t have to accept “other operating costs” or “other general costs”.
There is an exception: in some cases, you implicitly agree to some ancillary costs with your landlord. These could be separate payments for the washing machine or firewood for your fireplace.
4. How are ancillary costs billed?
Ancillary costs are billed in two different ways:
Flat-rate ancillary costs in Switzerland
The annual ancillary costs are agreed in advance. The flat rate is based on the average of the previous three years’ costs.
There is no annual bill. Neither you nor the rental company can claim the difference between actual costs and the flat rate. However, tenants are entitled to receive information about the average costs. You may request adjustments.
Account payment for ancillary costs
You pay an agreed amount for ancillary costs each month in advance and your landlord invoices the actual ancillary costs once a year. Depending on the actual costs, you will get money back or have to pay an additional amount.
You can reclaim any overpayments within one year, though your landlord may claim any ancillary costs within five years.
My landlord hasn’t created an ancillary cost bill: what should I do in Switzerland?
Your landlord is legally required to provide an annual ancillary cost bill (Art. 4, Rent and Leasing of Residential Property Regulation, not available in English). If they don’t, you have two options:
You can file a complaint with the conciliation authority.
You can reclaim your previous account payments. According to the Tenants' Association, The reason for this is no ancillary costs can arise without a corresponding bill.
Please note: ancillary cost bills have a limitation period of five years. This means if you receive a bill within this timeframe, you are obliged to pay it.
5. How can I check my ancillary costs?
Check your rental contract. You only owe the landlord the ancillary costs listed there. Also check whether it contains any non-permitted ancillary costs.
Compare your ancillary costs with a previous year’s bill. If something has risen sharply in price, request a detailed bill.
Your landlord must charge ancillary costs according to a fair and appropriate distribution formula. This could relate to the size of your apartment or number of tenants, for example. Don’t have a distribution formula? Inquire with your landlord.
Check whether your landlord has correctly credited your previous account payments.
You may receive an inaccurate or insufficiently detailed bill. This could be if your bill shows all ancillary costs summed together rather than listed individually, for example. You have the right to request a detailed statement from your landlord.
Does something seem unreasonably expensive to you? Request supporting documents for any costs you deem unreasonable. Your landlord must provide them to you.
Average ancillary costs in Switzerland
Ancillary costs vary depending on the apartment. Differences in price can be due to:
The size of your home.
The number of rooms.
The number of apartments in the building.
The building’s design: new-builds usually require less heating than older buildings, for example.
Additional services in the building: your ancillary costs cover buildings with lifts or caretakers.
Personal usage.
Type of heating bill: are your heating costs calculated individually or are the total costs shared via a distribution formula?
6. What should I do if my ancillary costs are charged incorrectly?
Get in touch with your landlord. Send a registered letter stating which part of the invoice you do not agree with. List the reasons and request a correction.
Note: some rental agreements provide a 30 day period for corrections. If notice isn’t given during this time, the bill is regarded as accepted in accordance with your contract.
According to the Tenants' Association, however, such a deadline is not enforceable. You can still make a claim after the deadline.
Has your landlord not responded to your request? You can also contact the conciliation authority for rental matters directly, free of charge.
Legal protection in case of disputes with the landlord
You can insure yourself against any costs incurred in the event of a tenancy dispute by taking out legal expenses insurance. Legal expenses insurance usually covers legal costs and lawyers’ fees.
7. Can my landlord sue me for ancillary costs?
Landlords can take action to recover debts if tenants don’t pay their ancillary costs. They may do so even in the event of an unjustified claim. You can, however, file an objection to this. This stops any further action and the landlord must consult the conciliation authority for to resolve the dispute.
Are your ancillary costs getting out of hand? If so, it’s probably worth looking for a new apartment.
This article was first published on 19.10.2016
