Utility cost statement in Switzerland: the complete guide for owners

The principle: only what has been agreed

Which charges are permitted

Typically permitted, provided they are agreed in the contract: heating and hot water costs, water and wastewater, common-area electricity (stairwell, laundry room), caretaking, snow clearance and garden maintenance, waste and refuse fees, service subscriptions (for example lift and heating), TV or internet as well as the proportionate cost of preparing the statement. The decisive test is always: actually incurred and linked to the use of the property.

Which charges are not permitted

Not permitted on the utility cost statement: maintenance and repairs, value-adding investments, vacancy costs, general administration costs (except the agreed cost of preparing the statement) and anything unrelated to the use of the property. These costs are borne by the owner and are covered by the rent.

Advance payments or flat rate?

With advance payments the tenant makes monthly prepayments which are settled annually, with a top-up or refund. With a flat rate the tenant pays a fixed amount with no settlement. Important: a subsequent switch from flat rate to advance payments is a contract amendment to the tenant's detriment and is only permitted via a formally correct notice on the official form.

The correct distribution key

Total costs are allocated to tenants using a distribution key, typically by floor area, number of occupants, value shares or consumption. Heating and hot water costs are billed on a consumption basis depending on the property. The key must be transparent and remain consistent over time.

What a correct statement must contain

A correct statement contains: the billing period, each individual position named exactly as in the tenancy agreement, the total cost per position with the distribution key, the tenant's share, the advance payments made and the balance. In addition, the tenant has the right to inspect the original documents at any time.

• Billing period (from and to date)
• Each position named exactly as in the tenancy agreement
• Total cost per position with distribution key
• Tenant's share per position
• Advance payments made
• Balance (top-up or refund)
• Reference to the tenant's right to document inspection

Deadlines and document inspection

The law does not prescribe a fixed deadline by which the statement must be prepared; annual settlement after the end of the billing period is both customary and sensible. The tenant is entitled to inspect the original supporting documents at any time. A transparent, verifiable statement avoids disputes.

The most common errors

Avoid: billing positions that were not agreed, disguising maintenance and repairs as service charges, insufficient or too coarse itemisation, an incorrect or changing distribution key, a silent switch from flat rate to advance payments and refusing document inspection. Each of these errors renders the statement contestable.

Special case: rooms, flatshares and co-living

For individually let rooms, flatshares and co-living, service charges are often included in an all-in or flat-rate price. A clear contractual arrangement is decisive here too, otherwise this is exactly where disputes arise. How to manage such a property professionally is covered in the guide "Have rooms, flatshares or co-living managed in Switzerland".

More on this in the related guide: Have rooms, flatshares or co-living managed in Switzerland

Delegate the statement instead of preparing it yourself

Owners who do not want to prepare the statement themselves can hand it to a management company. What this costs is covered in the guide "What does property management cost in Switzerland". What a management company does beyond this is explained in "What does a property management do".