Checking your service charge statement – how to spot errors
A Swiss landlord may only bill service charges that are specifically listed in the lease, and only at their actual cost (Art. 257a and 257b CO). You are entitled to inspect the receipts. Repairs, replacements, depreciation and mortgage interest do not belong in the statement.
What service charges are
Service charges (Nebenkosten) are the payment for services connected with the use of the flat – heating, hot water, caretaking, cleaning, lift, water and similar operating costs, plus public levies that arise from the use (Art. 257b para. 1 CO). For residential premises they must correspond to the landlord's actual costs. The landlord may not make a profit on them.
Service charges are separate from the net rent. A reduction because the reference rate has fallen only lowers the net rent; your service charges are settled on their own. It is worth checking both – the calculator covers the net rent, this guide the statement.
Only what the lease lists
You only have to pay service charges if they have been specially agreed (Art. 257a para. 2 CO). In practice this means each item must be named individually and precisely in the lease or its annex. Blanket terms such as "other costs" or "operating costs" are disregarded. Anything that is not agreed is deemed to be included in the net rent.
The landlord cannot simply add a new item later. Introducing new service charges during the tenancy is a unilateral change to the lease: it must be notified on the official cantonal form, with reasons, like a rent increase (Art. 269d para. 3 CO), and you can challenge it within 30 days (Art. 270b para. 2 CO). See challenging a rent increase.
Instalments or flat rate
- Instalments (akonto): you pay a monthly advance; the landlord must draw up a statement at least once a year and present it to you (Art. 4 para. 1 VMWG). You then pay the difference or receive a credit.
- Flat rate (Pauschale): a fixed amount with no annual statement. It must be based on the average of the actual costs over three years (Art. 4 para. 2 VMWG).
If the lease is unclear about which model applies, many lawyers assume instalments. The instalments do not have to match the actual costs exactly each year; a back payment on its own is therefore no proof of an error.
What may not be billed
Costs of ownership belong in the net rent, not in the service charges. For heating and hot water the VMWG expressly excludes repair and replacement of the installations and their interest and depreciation (Art. 6 VMWG). Other typical items that do not belong in the statement:
- mortgage interest and building insurance,
- repairs, renovation and replacement of appliances or installations,
- heating costs for vacant flats – they are borne by the landlord (Art. 7 VMWG),
- items that are not listed in your lease,
- public levies unrelated to the use of the flat.
Administration costs may be billed at actual cost or within the usual rates (Art. 4 para. 3 VMWG). In practice a guideline of around 3 % of the billed costs is often cited, with regional differences. A clearly higher rate is worth querying.
Checklist: line by line
- Agreed?Is every item on the statement individually listed in your lease?
- Same namesItems should carry the same names as in the lease.
- PeriodDoes the statement cover exactly one billing period, without overlaps?
- Your shareIs the allocation key (area, volume, meter readings) stated and plausible for your flat?
- No repairsAre there invoices for repairs, replacements or investments hidden in the totals?
- Admin feeIs the administration fee within the usual range of around 3 %?
- Payments creditedAre all your monthly instalments for the period deducted?
- Year on yearCompare with last year: explain large jumps before you pay.
Example
You pay CHF 200 a month on account, CHF 2'400 a year. The statement shows your share as CHF 2'650 and asks for a back payment of CHF 250. When you look at the receipts, you find an invoice for replacing the shared washing machine; your share of it is CHF 180. Replacing an appliance is a cost of ownership, not a service charge. Your correct share is CHF 2'470, so the back payment is CHF 70, not CHF 250. Pay the CHF 70, object to the rest in writing and ask for a corrected statement.
Inspecting the receipts
The landlord must let you see the receipts on request (Art. 257b para. 2 CO) – the actual invoices and contracts, not just a summary. Ask in writing and name the period. You may take photos; copies are usually charged. Many statements say you must object within 30 days; according to the Swiss tenants' association this deadline has no legal basis, but it recommends not waiting too long. Your lease may contain its own rules.
Found an error: what to do
- Object in writing, listing the disputed items and your reasons, and ask for a corrected statement.
- Pay the undisputed part. Paying nothing at all can lead to arrears.
- No agreement? You can apply to the cantonal conciliation authority for tenancy matters. The procedure is free of court costs (Art. 113 para. 2 lit. c Code of Civil Procedure). The offices are listed on our canton pages.
Limitation periods
According to the Swiss tenants' association, service charges become time-barred five years after the end of the billing period. Some leases shorten the period within which the landlord may claim back payments. Limitation is not applied automatically; you must raise it yourself.
If you paid for costs that were never agreed or are not chargeable, you can in principle reclaim them as unjust enrichment: within three years of learning about the claim, and at the latest ten years after payment (Art. 67 CO).
Frequently asked questions
Which service charges may the landlord bill?
Only costs for services connected with the use of the flat – such as heating, hot water, caretaking, stairwell cleaning, common electricity, lift, water, sewage and waste – and only if each item is listed in the lease (Art. 257a para. 2 CO). Blanket terms such as 'other service charges' are not enough. Anything not agreed is covered by the net rent.
How long can I ask to see the receipts?
The right to inspect is statutory (Art. 257b para. 2 CO). According to the Swiss tenants' association, the 30-day deadline often printed on statements has no legal basis. Still, don't wait too long, and ask in writing.
How high may the administration fee be?
Administration costs may be billed at actual cost or within the usual rates (Art. 4 para. 3 VMWG). In practice a guideline of around 3 % of the billed costs is often cited; rates vary by region. Question rates that are clearly higher.
When do back-payment claims from a statement expire?
According to the Swiss tenants' association, service charges become time-barred five years after the end of the billing period concerned. Some leases shorten the period for back payments. You have to raise the limitation defence yourself.
Can I reclaim service charges I paid too much?
Yes. If costs were billed that were never agreed or are not chargeable, you can in principle reclaim them as unjust enrichment – within three years of learning about it and at the latest ten years after payment (Art. 67 CO).
Does the service charge statement affect a reference-rate reduction?
No. A reduction due to the reference rate applies only to the net rent. Service charges are settled separately at actual cost. You can check both independently.
Sources
- Swiss Code of Obligations, Art. 257a, 257b, 269d and 270b CO (SR 220)
- Ordinance on the Lease of Residential and Commercial Premises, Art. 4–8 VMWG (SR 221.213.11)
- Courts of the canton of Zurich: service charges
- Swiss Tenants' Association: heating and service charges
- Swiss Tenants' Association: limitation of service charges
Related guides
This guide explains the general legal position under Swiss tenancy law. It is not legal advice for your individual case. For disputes, contact your cantonal conciliation authority or a tenants' association.