Guide for owners
What does property management cost in Switzerland?
The fee of a property management is surprisingly hard to compare in Switzerland, because there is no binding tariff. This guide shows transparently how the fee is composed, what is market-typical, what letting costs on top and how you can recognise a fair offer. Written from hands-on practice as a property management with a specialism in furnished rooms, flatshares and co-living.
By Jens Herbst, Founder of Bovita Property ManagementUpdated on 19 June 20267 min read
Topics
What a property management fee includes
A full mandate covers the commercial, technical and administrative management of your property: rent collection, dunning, accounting and the annual utility-cost statement, the care of the tenancies including tenant changes, the organisation of maintenance and repairs as well as a fixed point of contact for owners and tenants. Important: the financial back office, that is collection, dunning, accounting and the utility-cost statement, belongs to every serious full mandate and is not a chargeable extra.
How the ongoing fee is calculated
In Switzerland the ongoing fee is usually calculated as a percentage of the net target rental income, that is the contractually owed rents without utility costs. Market-typical are around 3 to 6 percent, typically 4 to 5 percent. There is no binding industry tariff. The former fee recommendation of the industry association was lifted for competition-law reasons. The rate is therefore always individually negotiable and depends on the property, the workload and the depth of service.
Fee orientation
4 to 5 %
market-typical for ongoing management, based on the net target rental income. No binding tariff.
What letting costs on top
The first letting of a flat is a separate service and is remunerated separately, market-typical at around one to one and a half months of net rent per letting. The reason: a letting causes one-off, concentrated work with listings, viewings, applicant screening, contract and handover, which has nothing to do with the ongoing management. For rental properties the owner or the management bears these costs, not the new tenant.
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A transparent worked example
A simplified example for orientation, assumptions and not a specific property: an apartment building with 8 flats and a net target rent of CHF 192'000 per year (8 flats at CHF 2'000 per month each). At an ongoing fee of 4 to 5 percent this gives roughly CHF 7'680 to 9'600 per year for the full management. A flat letting in the same year would be added separately, market-typical around one to one and a half months of rent, that is roughly CHF 2'000 to 3'000 per letting.
How to recognise a fair offer
A transparent offer discloses all services openly and hides nothing in flat rates.
- All back-office services included in the fee
- No hidden mark-up on tradesperson or insurance invoices
- Clearly defined letting and special costs
- Understandable reporting
- Reliable availability
If a provider charges collection or the utility-cost statement separately, it is worth asking precisely.
What really drives the price
The price depends less on the square metres than on frequency and depth of service. More tenancies, higher turnover, an older condition with a lot of maintenance and a higher need for communication increase the workload. This is exactly where the difference to furnished rooms, flatshares and co-living lies, where re-letting becomes a permanent state.
More on this in the related guide: Have rooms, flatshares or co-living managed in Switzerland
Frequently asked questions
What percentage does a property management charge in Switzerland?
Is letting included in the management fee?
Is there a binding tariff for property managers in Switzerland?
What does managing condominium ownership cost?
What should I look for in a management offer?
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.HEV Switzerland, association of homeowners (operation and management)
- 2.SVIT Switzerland, real estate industry association (former fee recommendation lifted for competition-law reasons, no binding tariff)
- 3.Federal Statistical Office FSO, vacancy rate
- 4.Swiss Code of Obligations, Art. 257a and 257b CO (service charges)
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